Irrespective of your investment strategy, achieving a minimum of 10-12% ROI is a basic goal for any property investor.
And R2SAs are a great way to help you achieve those targets.
Why?
Because, instead of having a full-time tenant like other strategies, you will gain higher daily incomes from people travelling for business or holidays.
But due to multiple complications in the investment strategy, it can be difficult for you to get the best results.
So how to maximise your ROI with an R2SA investment strategy?
What’s the best way to improve your occupancy rate?
Let’s find out.
Key Takeaways:
- Understand the hurdles you can face with your returns with the R2SA investment strategy.
- Use result-oriented strategies to increase your ROI using the R2SA investment strategy.
Increase ROI with R2SA
The R2SA property concept involves renting a property instead of owning it, allowing you to rent a property from its owner for short-term leasing purposes.
By following the tailored strategies, R2SA can generate a steady income flow for your financial goals.
Here are the steps to maximise your ROI with R2SA investment strategies. Have a look.
1. Choose the right location
Location is a key factor in the success of a serviced apartment investment. Look for serviced apartments situated in locations with high demand for short-term rentals.
Explore areas near business districts, tourist attractions, or universities. It can help you get more rental income which can maximise rental income and increase the return on investment.
Also, choosing a location with high demand can increase occupancy rates. The more the property is occupied, the more rental income it generates and the higher the return on investment.
The success of your investment strategy for a rent-to-serviced apartment can be significantly influenced by carefully selecting the location. This is because it can help you to maximise rental income, increase occupancy rates, and minimise the resources needed to secure tenants.
2. Invest in quality furnishings
The furnishings and amenities of the serviced apartment can have a significant impact on rental rates and occupancy rates. You should invest in quality furnishings and amenities that attract renters and provide a comfortable stay.
Also, quality furnishings and amenities can help to improve tenant satisfaction, leading to longer-term tenancies and fewer vacancies. Satisfied tenants are also more likely to leave positive reviews, which can attract more potential renters.
It can reduce maintenance and repair costs in the long term, as durable and well-maintained furnishings and amenities require fewer repairs and replacements, reducing the overall cost of ownership.
Talking about customer experience.
3. Manage the property effectively
Managing a serviced apartment requires ongoing maintenance, cleaning, and guest communication. You should ensure that the property is well-maintained and that guests have a positive experience to encourage repeat business and positive reviews.
If you can’t handle cleaning and maintaining your serviced apartment, hire professionals to handle the task.
It can ensure that the guest experience matches the price you want to charge, which can maximise your ROI using R2SA investment.
Don’t forget about managing rent collection and bookkeeping to ensure that rental income is maximised and expenses are properly accounted for.
4. Set competitive rental rates
Setting competitive rental rates is essential to attract renters and maximise occupancy rates. You should research the local market to determine appropriate rental rates and adjust them to stay competitive.
Evaluate similar properties in the area and adjust rental rates to stay competitive. But don’t be rigid with your pricing.
It’s also important to remain flexible with rental rates, particularly during high competition or low occupancy rates. Adjusting rental rates to stay competitive can help to attract potential tenants and increase occupancy rates.
5. Consider partnering with a property management company
Managing a serviced apartment can be time-consuming, and you may benefit from partnering with a property management company specialising in short-term rentals. This can help ensure the property is managed effectively and optimises rental and occupancy rates.
A property management company can offer several benefits, including expertise in the local market, professional guest communication, and assistance with marketing and advertising.
Furthermore, a property management company can assist with property upkeep and guarantee that it remains in good condition. This can result in heightened tenant contentment and favourable feedback.
In addition, collaborating with such a company can free up your schedule and resources, enabling you to concentrate on other areas of your investment portfolio. This could be particularly advantageous if you possess numerous properties or have other business ventures.
But choosing a professional property investment company can be overwhelming.
Out of multiple property investment experts in the UK, you can trust Pluxa Property with your R2SA investment strategy. As a client-centric, trusted, and Birmingham-based investment company, we have a strong team of experts who can analyse your requirements and help you achieve your desired results.
So, are you ready to achieve a higher rental yield and fulfil your financial goals with the best property investment company in the country?
Choose Pluxa Property
As a leading UK property investment firm, Pluxa Property specialises in building and managing rent-to-rent serviced accommodation (R2SA) portfolios.
Maintaining a consistent occupancy rate of 95%, our rent-to-serviced apartment investment strategy offers a hassle-free approach without needing to manage individual tenants.
With a strong support system in place and high demand for short-term rentals, the R2SA investment strategy has the potential to generate significant returns.
We have over 100 R2SA properties in our portfolio and work closely with small and large investors, ranging from single-unit to 20-30 unit portfolios.
Contact us now and contact our R2SA property investment experts to kick-start your investing, cost optimisation, and maintenance strategies.
FAQs
What are the key components of an effective R2SA investment strategy?
The key components of an effective R2SA investment strategy can include:
1. Choose the right location
2. Invest in quality furnishings
3. Manage the property effectively
4. Set competitive rental rates
5. Consider partnering with a property management company
How can I optimise my rental income with R2SA investments?
Make informed and planned decisions for cost optimisation with R2SA investments. You should invest in properties in high-demand areas that can cause higher rental income. Also, partnering with a reputable property management company can help ensure the property is efficiently operated, well-maintained and serviced to a high standard.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
