The SA (Serviced Accommodation) market has been boosted in recent years by the likes of Booking.com and AirBnB along with the influx of staycations in the United Kingdom following COVID-19. People these days are happy to holiday in Britain.
Owning a serviced accommodation property can be highly beneficial no matter where in the country it is… As people look for apartments and houses or even quirky spaces to rent short term instead of a single room traditional hotel.
Why do serviced accommodation properties make good investments?
It’s simple, in comparison to renting your property to a long term tenant where you get a set monthly rental income, you get to charge much higher nightly rates with serviced accommodation, often doubling or even trebling your income through a standard AST.
Take a £100,000 city centre property that rents at £800pcm. That’s a strong 9.6% yield but if you listed that property available for 30 days in April at just £80 a night. At 100% occupancy that yield lifts to a whopping 28.8% at £2,4000pcm – even at a 50% occupancy rate you’ll still earn £1,200pcm at over 14% yield so with your higher risk strategy, there’s much more potential for higher reward.
And in the summer months, those rents can be made higher too. Charging more at weekends, or over holiday periods is one way to get an extra income. Or even doubling prices around sporting events when demand is higher?
What locations are best for listing serviced accommodation?
Anywhere in the world. These days people will put a pin on a map and say “I want to go there” which is why in particular this market has thrived. Whether you’re in a land locked small town or by the sea but in the middle of nowhere, you’ll always get demand if you have a quality clean property. City centre locations or beach resorts do have higher demand, but with that comes higher price and a more competitive market. Feeder towns that have links to other major cities are attractive, the SA model is not just to welcome holiday makers, but everybody, from agency workers or contractors who are working locally, to people visiting relatives for a night or two. The possibilities are endless regardless of where your serviced accommodation is.
How Can We Help?
We work with a serviced accommodation provider, who find low priced properties and not only that, they can look after the management process of maintaining and managing the property so you don’t have to. They often commit to conservative double digit yields of 12% and above, but can often be much higher with investor attracted by the pull of the figures they can bring in, to invest again in a similar model.
What Are The Pitfalls?
Unlike letting long term through a standard AST… There will be void periods but in general, a good property in a good thriving local market will always come out on top. You may need to spend more internally on your home, or offer something slightly different to the norm, but by making it stand out, you can avoid those long lonely nights as an empty home. If all else fails, you still have your property. You can sell it, or even let it long term, but trying the SA strategy and offering short term properties to the masses and millions of those looking… Could see you reap some very interesting rewards.
We work in various areas across the country often in smaller towns like Chester, Doncaster, Cheltenham (see the link with popular race towns?), the Lake District, the South West, even larger cities or student towns where families and friends might want to pay a visit? We have property right now in Liverpool, Loughborough, Aberdeen, Hull, Bristol, Carlisle and more.
- Fully managed properties from under £100,000
- Minimum yields often well over 12%
- Team in place to look after bookings & management
- Hands off investment with access to managing agents own cleaning services
- Freehold or long leasehold property available
- Specifically chosen areas that work for you
- Listings on Booking.com, AirBnB and more
Simply fill out your details below and we will send you our latest opportunity as well as future serviced accommodation investment deals across the UK.