Serviced apartments are properties (usually 1 to 3 bedrooms) with fully-equipped utilities and hotel-like facilities such as room service, housekeeping, etc. The UK has started to regard serviced apartments as an ideal alternative to buy to let investments and thus the demand is high, expanding in every corner of the UK.
As serviced apartments have recently started to gain traction, property moguls around the country are already seeing the benefits. In fact, according to the Approved Property Group, serviced apartments can potentially generate 400% more revenue than a buy-to-let.
A key point to consider when looking to purchase a serviced apartment is the location. The apartment is likely to be let to either a business or leisure traveler. Look out for properties close to good transport links and things to do around the city. Travelers are now looking for more budget-friendly options as hotel room rates are at an all-time high.
Time of stay
Unlike buy to let properties, serviced apartments can be let for short-term or extended stays. Businesses are now looking to reduce the cost of overseas stays as much as possible, so a long-term stay in a more reasonably priced location would be ideal.
Obviously, the main benefit of investing in serviced accommodation is the return on interest. As stated above, you could potentially generate 400% more revenue than a buy-to-let. Other benefits include a better tenant profile, an easier exit strategy and the guarantee that your property will be kept in a good condition.
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