The demand for serviced accommodation in the UK has been on a steady rise, driven by several factors. One of the primary reasons is the changing preferences of travellers. Modern guests are looking for more than just a place to sleep; they seek a home-away-from-home experience with the convenience of a hotel.
Serviced accommodation offers precisely that. These properties come fully furnished and equipped with all the amenities one would expect in their own home. From fully equipped kitchens to spacious living areas and high-speed Wi-Fi, serviced accommodation caters to the needs of both leisure and business travellers.
Additionally, the COVID-19 pandemic has accelerated the trend towards serviced accommodation. Guests are increasingly valuing the privacy and cleanliness that these properties offer. They provide a safer and more controlled environment compared to crowded hotel lobbies and shared spaces.
Higher Rents: The Attractive Proposition
For landlords in the UK, the prospect of converting their rental properties into serviced accommodation can be a game-changer. One of the most significant advantages is the potential for higher rental income. Serviced accommodation typically commands a premium over traditional rentals due to the added value it provides.
Let’s take a closer look at the financial benefits:
- Increased Rental Income: As mentioned earlier, serviced accommodation units can fetch significantly higher rents than standard rentals. In some cases, the difference can be substantial. Guests are willing to pay a premium for the convenience, space, and amenities that serviced apartments offer.
- Higher Occupancy Rates: Serviced accommodation units often experience higher occupancy rates, especially in popular tourist destinations or business districts. This can lead to a more consistent income stream throughout the year.
- Flexibility in Pricing: Landlords have the flexibility to adjust their rates according to seasonal demand, local events, and market conditions. This dynamic pricing strategy can result in increased profitability.
- Shorter Stays, More Turnover: Serviced accommodation units typically accommodate shorter stays than traditional rentals. This higher turnover can translate into increased revenue as you have the opportunity to rent out your property multiple times within a month.
- Tax Benefits: In the UK, there are specific tax advantages associated with serviced accommodation. Landlords may be eligible for various tax deductions, making the venture even more financially attractive.
Turning Your Rental into Serviced Accommodation
Converting a traditional rental property into a serviced accommodation unit requires careful planning and investment. Here are the key steps:
- Furnish and Equip: Start by furnishing your property with high-quality furniture, appliances, and amenities. Ensure that the property is fully equipped to meet the needs of your guests. A well-furnished kitchen, comfortable bedding, and modern technology are essential.
- Safety and Regulations: Make sure your property complies with safety regulations and has the necessary insurance coverage. Safety is paramount in the hospitality industry. Consider installing security measures such as smoke detectors, fire extinguishers, and a secure entry system.
- Marketing and Booking Platforms: Listing your serviced accommodation unit on popular booking platforms like Airbnb, Booking.com, and others is essential for attracting guests. Professional photography and well-written descriptions can significantly improve your listing’s visibility. Social media and your own website can also be valuable marketing tools.
- Cleaning and Maintenance: Regularly clean and maintain your property to ensure it stays in top condition. Providing a clean and well-maintained space is crucial for positive guest reviews. Consider hiring a professional cleaning service to maintain the property to a high standard.
- Guest Services: Providing excellent guest services can set you apart from the competition. This includes quick and efficient communication with guests, a smooth check-in/check-out process, and being responsive to their needs during their stay.
- Legal Considerations: Familiarise yourself with local regulations regarding short-term rentals and serviced accommodation. In some areas, there may be specific rules and taxes that you need to adhere to.
The Role of Professional Management Companies
Partnering with serviced accommodation management companies can be particularly appealing for landlords who wish to enjoy the benefits of serviced accommodation without the hands-on responsibilities. These management companies have expertise in the industry and can handle various aspects of your property, including:
- Marketing and Listing: Management companies can optimise your property’s online presence, ensuring it ranks well on booking platforms and attracts potential guests.
- Guest Services: They can handle guest inquiries, check-ins, and check-outs, providing a seamless experience for your guests.
- Cleaning and Maintenance: Professional cleaners can maintain the property’s cleanliness and perform regular checks to ensure everything is in working order.
- Pricing Strategy: Management companies can employ dynamic pricing strategies to maximise your rental income.
- Legal Compliance: They stay up-to-date with local regulations, ensuring your property remains compliant with any necessary permits or tax requirements.
While partnering with a management company comes with a fee, it can be a valuable investment for landlords who prefer a more hands-off approach or have multiple properties to manage.
In Conclusion
The rise of serviced accommodation in the UK market presents a golden opportunity for landlords to maximise their rental income and cater to the evolving preferences of today’s travellers. With higher rents, the potential for increased profitability, and the option to enlist professional management services, converting your rental property into serviced accommodation can be a rewarding venture.
As the demand for serviced accommodation continues to grow, now might be the perfect time to unveil the benefits of this hospitality trend and embark on your journey towards providing the ultimate stay experience. Whether you choose to manage your serviced accommodation independently or partner with a management company, the potential for success in this thriving industry is undeniable.
If you want to get trained on the Serviced Accommodation strategy visit the Property Accelerator here.
