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Emergence and Growth of Rent to Serviced Apartments

Posted by Jehan Anis on July 9, 2023



In recent years, the concept of Rent to Serviced Accommodation (R2SA) has emerged as a lucrative opportunity for both landlords and property investors. This innovative approach involves renting a property from the owner at the standard long-term market rate and then subletting it on short-term rental platforms like Airbnb. By focusing on the short-term rental market, Rent to Serviced Accommodation aims to increase revenue and attract a diverse range of renters, including tourists, corporate travellers, and seasonal workers. In this blog post, we will explore the benefits of Rent to Serviced Accommodation for landlords, property investors, and provide insights on how to make this venture successful.


The Appeal of Rent to Serviced Accommodation:


Serviced Accommodation offers renters the convenience and amenities of a fully furnished home, providing a level of comfort comparable to a vacation rental. These accommodations typically include a well-equipped kitchen, bedrooms, a bathroom, and a living room. In addition, utilities and internet expenses are usually included in the rent, allowing tenants to enjoy their stay without worrying about additional costs. Whether individuals are travelling for work, on vacation, or visiting friends, serviced accommodation offers the privacy and flexibility of a home away from home.



The Benefits for Landlords:


The Rent to Serviced Accommodation strategy brings several advantages for landlords. Firstly, it helps mitigate the issue of void periods commonly associated with traditional buy-to-let properties. With assured shorthold tenancies ranging from six to twenty-two months, landlords often face potential income loss during vacant periods. However, with R2SA, landlords enter into a management agreement or lease with a 3, 4, or 5-year term, ensuring a consistent cash flow and minimising the impact of void periods.


Furthermore, serviced accommodations are meticulously maintained compared to standard rental properties. Regular upkeep and maintenance are essential to attract short-term renters who demand a high level of presentation and comfort. This attention to detail reduces long-term maintenance costs and keeps the property fresh and appealing to potential guests. Ultimately, R2SA allows landlords to generate a stable income stream while ensuring their property remains well-maintained and attractive for the target market.



The Advantages for Property Investors:


Renting out properties as rent to serviced accommodations offers several advantages for property investors. Firstly, it allows investors to tap into the growing demand for short-term rentals, especially in popular tourist destinations and business hubs. This high demand can result in higher rental yields and increased profitability. By capitalising on the flexibility of short-term rentals, investors can adjust rental rates based on market conditions and maximise their rental income.


Secondly, rent to serviced accommodations provide an opportunity for investors to differentiate their properties and attract a wider range of tenants. By offering fully furnished and well-equipped properties, investors can cater to the needs of business travellers, vacationers, and individuals undergoing temporary relocations. Furnished properties often command higher rents and have a higher chance of being booked consistently throughout the year.


Lastly, rent to serviced accommodations often experience lower vacancy rates compared to traditional long-term rentals. The consistent demand for short-term stays reduces the risk of extended vacancies and ensures a steady stream of income for property investors. Additionally, by targeting corporate clients who frequently require short-term housing, investors can secure longer bookings and establish reliable relationships with businesses, ensuring a reliable occupancy rate.


Overall, the advantages of rent to serviced accommodation for property investors include higher rental yields, flexibility in rental durations, attracting a diverse range of tenants, and reducing vacancy rates. These benefits make serviced accommodations an appealing option for investors looking to optimise their returns and capitalise on the growing demand for short-term rentals.

Keys to Success in the Rent to Serviced Apartments Business: Providing Exceptional Service and Creating Desirable Accommodations


To thrive in the Rent to Serviced Accommodation (R2SA) business, it is vital for operators to adopt a service-oriented mindset. The success of this venture hinges on delivering outstanding customer service and maintaining high-quality standards that set their accommodations apart. Unlike managing a traditional rental property, the reputation and guest reviews of serviced apartments can heavily impact the success of the business. Therefore, operators must prioritise prompt issue resolution and strive to provide an exceptional overall customer experience.


One crucial aspect of ensuring guest satisfaction is maintaining pristine properties. Investing in reliable and competent cleaners is essential to keep the accommodations spotless. Professional cleaning of linens, towels, and supplies is also crucial for presenting a polished and welcoming environment. By conducting regular quality checks and implementing well-defined quality assurance processes, operators can ensure that guests’ expectations are consistently met or exceeded, leading to positive reviews and repeat bookings.


Another key to success is enhancing the desirability of the properties. Making an initial investment in furnishings and design can significantly elevate the overall appeal of the accommodations. Attention to detail is paramount, whether it’s adding a striking feature wall, incorporating tasteful artwork, or upgrading lighting fixtures. These enhancements create an inviting atmosphere that sets the accommodations apart from competitors. By improving the aesthetics and comfort of the properties, operators can attract a larger pool of guests and increase occupancy rates.


Moreover, operators should consider the specific needs and preferences of their target market. Understanding the demographics and preferences of potential renters can help in tailoring the accommodations to their requirements. For example, if targeting business travellers, providing a comfortable workspace and reliable internet connectivity can be a valuable addition. By anticipating and meeting the needs of guests, operators can enhance customer satisfaction and differentiate their properties in a competitive market.


In summary, excelling in the Rent to Serviced Accommodation business necessitates a commitment to exceptional service and the creation of desirable properties. Operators must prioritise outstanding customer service, invest in reliable cleaners, conduct regular quality checks, and implement quality assurance processes. Additionally, enhancing the Rent to Serviced Accommodation property through tasteful furnishings, captivating design elements, and personalised amenities can significantly increase their appeal. By delivering an exceptional guest experience and providing accommodations that surpass expectations, operators can cultivate a positive reputation, secure repeat bookings, and ultimately maximise profitability in the thriving market of Rent to Serviced Accommodation.


Acquiring Guests and Ensuring Satisfaction:

To secure guests for your Rent to Serviced Accommodation, effective marketing is key. Utilising online platforms such as Airbnb and can help you reach a wide audience of potential short-stay tenants. These platforms provide a convenient way to showcase your property’s features and attract bookings. Striving for an occupancy rate between 65% and 85% is a reasonable target, and depending on the property’s location and demand, operators can expect monthly profits ranging from £500 to £1,500 after expenses.


Once guests have booked, it is crucial to prioritise customer service and cleanliness. Similar to a hotel experience, ensuring clean and organised properties, changing sheets between guests, and maintaining high hygiene standards are essential for guest satisfaction. Hiring a trustworthy cleaner can help maintain the property’s cleanliness and ensure that beds and towels are presented to perfection. Moreover, employing a virtual assistant can be a cost-effective way to handle administrative tasks and streamline communication with guests, enabling operators to focus on the business aspects of their investment.




Rent to Serviced Accommodation offers a promising opportunity for landlords and property investors to capitalise on the growing short-term rental market. With its focus on providing comfortable and fully furnished homes, Rent to Serviced Accommodation attracts a diverse range of renters, resulting in higher rental income and minimised void periods. By delivering excellent customer service, maintaining high-quality standards, and employing effective marketing strategies, operators can maximise their profits and establish a thriving Rent to Serviced Accommodation business. If you are a landlord or property investor interested in exploring this flourishing sector, Star Sterling can provide you with valuable guidance and R2SA opportunities across the UK. Contact us today for more information and start your journey towards success in the Rent to Serviced Accommodation market.

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Established in 2019, Star Sterling is a family-run business based in the UK. As a cutting-edge investment advisory firm, we aim to deliver top-of-the-line investment services to all our valued clients. Leveraging a dynamic combination of finance and real estate expertise, we specialize in B2SA, R2SA, and BTL property investments.
Our professionals work tirelessly to identify the best investment solutions for estate agents, landlords, and investors and cultivate long-term partnerships for future success. We partner with businesses to find suitable properties to provide premium accommodation on a short-term basis to business travelers and contractors. By creating customized strategies for our clients, our services extend beyond the traditional confines of real estate

Our Typical Investors are

✓ People with a minimum of £7,500 to invest into Rent To Serviced Accommodation and £50,000 into Below Market Value property deals
✓ Looking to build high cash-flowing Rent To Serviced Accommodation portfolio (either passively or self-managed)
✓ Looking to buy Below Market Value residential properties with 8% to 10% annual return on capital
✓ Looking to achieve financial freedom through property investment in the UK
✓ Looking for safe and secure investment opportunities with low risk
✓ Looking to build a legacy for their family’s future

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