How to Run a Serviced Apartment Business in the UK: A Complete Guide

Are you starting your serviced apartment business in the UK?

Want to avoid major hiccups in the process and ensure a smooth start to your business?

In 2022, serviced apartment occupancy rates were 78% nationwide, compared to 73.5% for hotels.

These stats highlight the growing market and increasing opportunities in the sector.

To leverage the trend, you must know all the nitty-gritty aspects of starting a professional serviced apartment business.

So, without further ado, let’s dive into the details.

How to Invest in Serviced Apartment Business?

There are multiple ways you can invest in a serviced apartment business. 

• You can buy a new property and use it as a serviced apartment. 
• You can also convert an existing buy-to-let to a serviced apartment. 
• Another alternate way to enter the serviced apartment market is using a rent-to-rent agreement.

Irrespective of your chosen path, you must know the property’s suitability for the serviced apartment business and the standard process you must follow. Let’s get to it.

6 Steps to Set Up and Run a Serviced Apartment in the UK

Setting up a serviced apartment business includes six important setups you must know. From finding the right property to marketing, let’s understand each aspect in detail.

1. List out best-fit properties

Dig deep into finding the right and desirable accessible locations through public transportation. Also, filter out the location based on the distance from leading restaurants and other important amenities. 

Focus on the size of the property you want to invest in and the number of guests it can accommodate based on your goals.

Once you finalise a list of the ideal properties that fit your budget and the above factors, you can choose one for your serviced apartment business.

For example, you can choose a property in London near the King’s Cross Station, which is easily accessible using public transportation like trains or business. Also, your guests can walk to popular restaurants and amenities like the British Museum and Regent’s Park. 

2. Furnish the chosen one 

After finalising the property, you have to furnish the property with modern and comfortable furniture to enhance the overall staying experience. 

Also, based on your target audience, you should make the right furniture choices to increase the conversion rate and business metrics in the future.

Note: Cover all the necessary amenities, such as high-speed internet, cable TV, well-furnished bathroom and kitchen.

3. Establish your business online

Once the base of your serviced apartment business is ready, you have to take your business online and reach out to your target audience. Create listings on sites like Booking.com, Expedia, Airbnb, etc., which can help you connect with the ideal customer.

For example, you create a listing of your property in London on Airbnb, Booking.com and Expedia. You should also focus on high-quality photos and create detailed descriptions of local attractions and amenities to generate quality leads.

Note: It’s important to work on the presentation and details like the number of rooms, amenities and location of your dedicated property pages. Hire an expert if you don’t have the right skill set to present your business online correctly. 

4. Market your listings well

To run a successful serviced apartment business in the UK, you must market your property well to have a decent inflow of guests and inquiries. Try to invest in targeted social media ads focusing on families and small groups looking for your type of apartment.

You should also consider offering opening discounts and partnering with local tour operators to drive initial bookings and reviews. Apart from that, don’t miss out on using SEO techniques to strengthen your website’s visibility on search engines to attract more bookings.

5. Customer service should be top-notch

Once you generate high-quality leads and convert them into your guests, you must ensure they receive top-notch customer service during their stay. You must respond to their queries and ensure your team addresses their concerns.

Your support staff should provide a clean and comfortable living environment and ensure they have everything to experience their best time staying at your property.

6. Proper management

Although you can start your business with just five steps, the key to running a successful service apartment business in the UK is to manage your property well. 

Most business owners don’t manage their properties well and then think why isn’t their business successful? So, make sure to keep it clean and hygienic and maintain all essential facilities with a professional team of helpers.

You can also outsource the maintenance work to third-party property management companies who can assist you in improving the day-to-day management of your serviced apartment.

These steps can help you start, run, and manage a profitable and rewarding business venture effectively.

How Can Pluxa Property Help You with Your Serviced Apartment Business?

Now that you know how to start and run the business, you must first find the right property deals to kickstart your serviced apartment business. 

Whether you’re a first-time buyer or an experienced investor looking to expand your portfolio, you need professionals to help you identify the right properties based on your business goals and planning.

That’s where you can trust Pluxa Property.

Choose Pluxa Property to get the best deals if you want to invest in the serviced apartment sector.

Make a wise decision to achieve great financial success for your serviced apartment business in the UK with our property investment company.

FAQs

1. How profitable are serviced apartments?

Serviced apartments can be profitable if you take the proper steps and build a solid foundation for your business. However, the overall profitability depends on location, service quality, and effective property management.

2. How do serviced apartments work?

Serviced apartments operate like a hybrid of a hotel and a rental apartment. They provide fully furnished apartments with amenities like a hotel, including housekeeping and customer service. Being an owner, you can associate with a  property management company that can assist you in improving the day-to-day management.