Serviced accommodation (SA) is a type of rental strategy where a fully-furnished property is available for short or long-term stays. Unlike single lets, with serviced accommodation there is no minimum “tenancy” period, making it one of the most flexible rental strategies; you can rent your property out for one night or as many as you like.
It provides the occupants (known as guests, not tenants) a home-from-home e.g. all of the appliances they may require are supplied. The degree of “service” provided with this rental strategy can vary. At a minimum a property is typically furnished and bedding is supplied; however, it can offer services similar to those offered by hotels such as daily cleaning, bed making and in some rare occasions cooking!
Serviced accommodation is a growing and popular alternative to hotel accommodation for tourists who are on holiday/weekend trips and professionals/contractors who are working away from home. Often it is cheaper to book serviced accommodation than a hotel room.
Who is serviced accommodation for?
If you have a rental property which is either in a city, close to a tourist attraction, local to a business centre, exhibition centre, construction site or local hotel, then this rental strategy could be suitable for you!
In addition, this rental strategy gives you more control over your property; due to the short-term nature of the stays, you have the ability to inspect your property more frequently. In the case of long-term stays, you can inspect your property while “servicing” it (e.g. during the weekly clean). This helps you stay in control of your property and maintain its high standards.
Benefits of serviced accommodation
As there are no restrictions on the length of stay, serviced accommodation is one of the most flexible rental strategies, and gives you more control over your property. In addition, the “serviced” aspect of this rental strategy means properties are cleaned and maintained on a regular basis ensuring the overall condition of your property is kept to a high standard.
Finally, using this rental strategy it is possible to increase your property’s rental yield; the fees you can charge per night or per short/long stay are proportionately far greater than the amount you could feasible charge a tenant renting your property as a single let. However, don’t forget operating a serviced accommodation property will require more work as you will need to “service” your property more frequently.
It’s important to beware that in some areas there are restrictions on serviced accommodation properties and you can incur fines if you are found to be operating in these areas.
Where can I find someone to help with serviced accommodation?
If you wish to operate your rental property as serviced accommodation and want advice on setting it up or want someone to provide you with serviced accommodation management, use Doormarked to find an IPA who can help you!
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