Should you consider investing in serviced apartments
With the growing demands from guests searching for a place they can not only stay but have space to work from their accommodation, a serviced apartment offers multiple new benefits previously ignored. Additionally, because the lettings are for shorter periods, the owner will be able to utilize their property on an as-needed basis, which may be ideal if you intend to visit a location where you own an investment property infrequently.
If you’re thinking about investing in serviced apartments, you should do so only if it aligns with your goals and financial situation.
Property investment can vary in terms of profit and the property type; investors are frequently focused on the property and its capital growth and tend to go with the flow when it comes to letting the property.
As a property strategy, serviced housing has the potential to generate significantly more rental income than longer-term leased properties. In addition, if the accommodation is located in a desirable area, the risk of void periods is reduced.
To address the question, should you invest in serviced housing? We’d strongly advise you to consider it as a possibility. Please get in touch with us if you’re interested in learning more.
Are serviced apartments worth investing in?
The serviced apartment market has developed significantly in recent years, exceeding investment in hotel rooms. According to a survey by global real estate brokerage Savills on the European Serviced Apartment Market, serviced apartments have fared better than hotels in terms of occupancy levels during the pandemic.
While serviced apartments were not completely immune to the demand decline caused by Covid-19, the sector is on track to rebound the quickest, with a 41 percent increase in serviced apartment RevPAR (revenue per available room) expected this year.
Serviced apartments are an excellent investment because they have minimal operational costs and long average visitor stays.
How to set up a serviced apartment?
The most efficient and successful method of setting up serviced accommodation is to work with a professional team that can oversee the property, manage guests, and maintains it.
This way, you’ll have the assurance that a professional body oversees every aspect, which is especially beneficial if you have no prior industry knowledge, lack the time, or are not local.
Serviced apartments are increasingly seen as a cost-effective and reputable alternative to hotels. They’re ideal for extended visits and guests are attracted to them because they offer all the amenities of a home and allow them to live more like a local.
If your property was previously rented on a long-term basis, likely, you have already furnished it appropriately, but if not, you will need to furnish it completely. Additionally, you’ll need to provide bed linen, cutlery, and other items necessary to create a homely environment when renting a serviced apartment. A management business can help you ensure that you are prepared for paying guests.
Additionally, it is critical to ensure that you have the appropriate insurance.
What is included with serviced accommodation?
It’s beneficial for landlords to define precisely what is included or required of individuals staying on the property.
“Essentially, serviced accommodation is a ‘home away from home,’ and the rental amount includes all taxes and utilities in most situations.”
Serviced apartments provide privacy and convenience, so they are popular with business travelers who spend more than a few days in a region. Equally serviced accommodations may appeal to people visiting for a brief period and prefer additional room and the opportunity to prepare their meals.
Serviced apartments are expected to have several amenities, such as:
- One or more separate bedrooms from the living area, or in the case of a studio apartment, a clearly defined sleeping area.
- A fully equipped kitchen with everything necessary for storing and preparing food. There will be pots, pans, plates, and silverware available. Generally, a dishwasher and washer/dryer are included.
- There should be a television, Wi-Fi, and desk space for work.
- Utilities, such as water and electricity, must be included in the cost.
- Regular housekeeping services.
“One of the most critical things is to ensure that the space is attractive both inside and out.”
Serviced accommodation can be an excellent strategy. It all comes down to selecting the right property. You must first determine to whom you will be renting the property. Next, it’s about making the property appealing enough for visitors to want to visit and stay. One of the most critical things is to ensure that the space is attractive both inside and out. The images you share should make the property stand out to attract the ideal clientele. If you can accomplish this, there is no reason why serviced accommodation should not be a viable option for you.