Serviced accommodation is a type of rental property containing the same amount of furnishings and amenities as a regular rental home, but is designed to be used for shorter stays as opposed to long-term residence.
At Flyt Properties, we rent our serviced accommodation to holiday goers, business travellers and other guests for both long-term and short-term visits, and our clients in Glasgow and across the central belt have seen huge success from renting out their properties this way.
What’s the Difference in Profit?
Well, here’s an example of the difference in profits between buy-to-let and serviced accommodation:
One of our clients purchased a property in Falkirk for £120,000. After renovations were complete, we began booking it out as a serviced accommodation for £150 per night. If the property was let, it would stand to make around £800 per month in rent, but as serviced accommodation it brings in around £4,500 every month at 80% occupancy.
Of course, this is just an example, and your actual profits will depend on a number of factors such as the location of the property and the level of demand- however, it does show how significant the potential profits from serviced accommodation can be.
Why is Serviced Accommodation More Profitable?
There are many reasons why serviced accommodation turns over much better yields than lets, but these are some of the biggest.
Many holiday-goers prefer the size and amenities available in serviced accommodations as opposed to hotels, and so are willing to pay more for them. This is especially true of larger groups like families, who can struggle to find hotel rooms that can accommodate the size of their group without compromising comfort and privacy.
Professionals staying elsewhere for work, meanwhile, are drawn to serviced accommodation because it serves as a suitable space for them to temporarily live in while they’re away from home. Professionals who need to frequently travel for work are often in high-earning positions, and so are willing to spend more to have the comforts and amenities that a serviced accommodation provides.
Serviced accommodation can also achieve higher occupancy rates than long-term rentals because guests typically stay for shorter periods of time. This means the property can be rented out more frequently, which reduces the risk of long void periods.
Overall, turning a property into serviced accommodation can be a very profitable investment, and Flyt can help you at all stages of the operation, from sourcing the property to finding tenants for it. If you are considering investing in property, then get in touch with us here at Flyt and let’s have a chat about how we can make it happen!