If you’ve traveled for vacations or business, there’s a good tendency you checked-in a serviced apartment. Short-term rentals offer a more convenient alternative to an average hotel room and are preferred by business tourists and travelers. While you may have appreciated your stay in a serviced home, you may yet consider them as a property investment opportunity. However, serviced accommodation may be the way to go to help increase your monthly profits.
Real estate experts say that serviced accommodation yields more profits than other rent-to-rent strategies. While this true, how do they stack up as a property investment?
How does it work?
Meanwhile, Airbnb hosts should ensure that their homes have a good communication system, such as landline, a computer with Wi-Fi, local laundry services, as well as benefits of a home, including a kitchen and work area. These basic amenities help give guests the home-like feeling and keep them comfortable. What’s more, you can even leverage them for higher rentals.
It’s important that you pay special attention to the wear and tear of such homes because of the steady check-in and check-out. Sometimes, keeping the coat of paint fresh and all appliances in order opens you to charge extra. This may incur more monthly maintenance fees but it’s okay since you’ll make more bookings eventually. And ultimately, more profits. You can easily take this to your plus since regular landlords or other rent-to-rent owners don’t do this often.
A good thing about this investment option is that you don’t necessarily have to manage it yourself. You can have an agreement with an experienced property manager, like Pass The Property, for a completely hands-off experience while still earning a premium.
More Stream of Guests?
You can truly say you optimize profits on your serviced accommodation listings when you have a steady stream of guests. However, in addition to offering premium amenities, your Airbnb home must be in a convenient location.
Don’t forget that pricing is a significant element too. A secret to more bookings on a serviced accommodation rental is giving it out at lower rates offered by other rent-to-rent strategies in order to lure more guests.
Benefits of Investing in a Serviced Accommodation?
Short-term rentals can offer a number of benefits that set them apart from other rent-to-rent investment strategies. They include:
A Guaranteed Source of Income
Putting your serviced apartment in the care of a property operator alleviates the risk of long periods of vacancy associated with other rent-to-rent options. With a completely hands-off experience, leveraging the serviced apartment agreements put you in a better position to earn a guaranteed premium. Since property managers are experienced and knowledgeable with the marketing strategies that work, they help you make the best of your investment.
They Offer Good Rental Returns
Serviced apartment agreements offer a fixed rate of returns to the Airbnb host (property owner) and can be higher than other rent-to-rent options. For example, a serviced apartment can offer a net rental yield an increase of 10% while other types of residential property may be at 5%.
And in most cases, depending on your agreement with the property manager, you don’t have to spend a dime on maintenance or repairs. The ongoing repairs and upkeeps will be done by the property operator.
Ready to unlock the possibilities of the serviced accommodation?
Perhaps you’re starting to consider an investment in the serviced accommodation business, Pass The Property offers a completely hands-off experience that guarantees a steady monthly income for you. Simply give us a call on 0333-301-0787 to get started.
