Everything You Need To Know About Serviced Accommodation
If you’re completely new to the property industry then you may be surprised to find out just how many different ways you can go about investing in property. It can be quite difficult to get your head around all of the different names and terms used for these investments, especially if you’re unsure what some of them actually are.
Often, when investing in property, people are interested in purchasing a property that they can then let out to others. This is becoming increasingly popular and whilst the majority of people know what a buy-to-let property investment is, not everyone is aware that you have another similar option too; serviced accommodation. To help anyone looking into this type of investment, our team here at Fielding Financial has put together a guide covering all of the basics.
What is serviced accommodation?
Serviced accommodation is similar to buy-to-let in the sense that you own a property that other people will pay to stay in, but it is different in the fact that it is usually let out on a short-term basis. Where you can expect people to stay in a buy-to-let for 6-months or a year, people will usually stay in serviced accommodation for a weekend or a few days.
The people that stay in serviced accommodation are also referred to as guests – rather than tenants like you would call those staying in a buy-to-let property. You should also note that as an investor you will need to fully furnish your serviced accommodation and provide any required amenities too, which isn’t always required with buy-to-let property investments.
Investing in serviced accommodation
Often, people choose to invest in serviced accommodation over making a buy-to-let property investment because it is much more flexible. You can decide which guests stay in your property and for how long, whereas with a buy-to-let you have to have a 6-month AST (assured shorthold tenancy) as a minimum.
Due to this flexibility, and the fact that you can host more guests over a short period of time, serviced accommodation is often more profitable than other property investments. Depending on where your property is, you may find that your amount of guests changes with the seasons too. Summer is often an incredibly busy time for hosts of serviced accommodation.
Of course, with this increased profit comes hard work and you will need to ensure that your property is always clean and tidy ready to welcome new guests. You will obviously also need to manage bookings and make sure that you fit guests in correctly. However, nowadays there are different systems that can help you in this regard.
How to choose a serviced accommodation property
More often than not, the properties that are used for serviced accommodation are very similar to those that are chosen for a buy-to-let property investment. However, the majority of investors choose an apartment over a house for serviced accommodation. This is simply because they still provide guests with a nice place to stay but they are cheaper to purchase and maintain.
Of course, location is incredibly important for any property investment, but especially with serviced accommodation. You need to not only choose a desirable location but you also need to consider whether people want to visit the area. For example, is it close to the seaside or in a city centre? These are just a few factors to take into consideration.
Learning more about serviced accommodation and property investing
Hopefully, you will now know all of the basics about serviced accommodation. It goes without saying that there are numerous benefits to investing in this specific type of property, and if you’re happy to put in the work, then you can reap the financial benefits. So, ultimately, when looking to invest in property, it is definitely worthwhile considering this specific type of investment.
If you would like to find out more about serviced accommodation and buy to let property investments, visit the Fielding Financial website today. We have lots of different property investment courses available, both online and seminar-based, all of which are incredibly beneficial for anyone wanting to expand their knowledge in this regard. To find out more about these courses, please don’t hesitate to get in touch today and our team will gladly assist you.