Today there are many fluctuations in the real estate market, and Manchester is the same, making it difficult for us to determine the ideal investment option for you. In the midst of these investment challenges, rent to serviced accommodation in Manchester is one such investment opportunity quickly gaining attention. So if your next investment strategy is in Manchester, then there is no better time than today to invest in rent to serviced accommodation.
This is the perfect location for the most lucrative investment options that are certain to get you the most compelling returns.
Statista forecasts that the serviced accommodation industry will expand over the next few years, following the COVID-19 pandemic and recovery.
Read on to learn about R2SA meaning, and understand the benefits of R2SA in Manchester.
Key Takeaways :
- Serviced apartments are often rented to meet your financial needs and generate consistent revenues.
- Research the rental market on your own by leveraging the Internet.
- You can hire agents to your advantage who can give you a better insight into Manchester rental market.
What Is Rent to Serviced Accommodation?
Wondering what is R2SA property? R2SA (Rent to Serviced Accommodation) is a term that usually refers to short-term holiday rentals of furnished properties where the property is rented from the owner to the person who is renting the property.
Owners (landlords) will rent the property to the tenants for the normal long-term market rent, and then the tenant can rent it out on short-term rentals through platforms to make a living.
Rather than attracting long-term renters to your property, you will be using short-term rentals to generate more income from your rental property.
It is necessary to have a higher level of quality and presentation than a standard tenanted property for short-term rentals since they must appeal to short-term renters (sometimes for as little as two days) who are expecting a high level of presentation, as they might expect in a hotel or bed & breakfast.
How Do Serviced Apartments Work?
You can enjoy the benefits of hotel rooms, such as cleaning service and fully furnished rooms, which provide you with the advantages of an apartment, such as a kitchen, living room, and workspace, and the benefits of a hotel room.
In addition to short- and long-term stays, there is also the option for R2SA deals for individuals who own the apartments and entrust them to the operator for accommodation.
5 Benefits Why You Should Invest in R2SA in Manchester
Several benefits can be gained from investing in rent to serviced accommodation instead of investing in more traditionally developed investment properties. Here are a few:
They guarantee rental income
One of the essential and must-consider benefits of rent-to-serviced accommodation in Manchester is that it provides guaranteed rent to the investors, which you may not find in other investment options. On top of that, this investment option benefits you in the short term and provides you with long-term returns. The growing demand for serviced apartments has led investors to go after investing in rent to serviced apartments.
With this option in your investment portfolio, you will receive a fixed rate on their rental property regardless of whether the unit is occupied. In contrast to other investment properties, there is less risk of long vacancy periods, which is often a risk associated with other properties.
They can offer good rental returns
A fixed price can make rent-to-serviced accommodation agreements much more profitable for an investor since they often offer a fixed rate of return. According to CoreLogic Hedonic Home Value Index, it was estimated in 2021 that the gross rental yielded across the combined capital cities was 3%. A serviced apartment yields around 6% compared to a regular apartment.
No maintenance or repairs are required
An agent is responsible for maintaining and repairing the apartment as part of its ongoing service. As a result, you will be fine with handling maintenance requests from property managers or dealing with tenants’ complaints about the property’s condition. As part of many serviced apartment contracts, the operator will be your tenant and responsible for repairs.
High occupancy levels
Throughout the year, Manchester is home to many ex-pats and tourists who come to the city to work and live, which means that it enjoys year-round demand for serviced apartments. Due to the high demand, the serviced apartment sector has a relatively high occupancy rate, which ensures almost no difficulty obtaining tenants.
Regardless of whether or not your serviced properties remain occupied during the entire twelve months of the year, you can rest assured that they will be fully occupied for the most part, and even if they go vacant, they will only be for a very short period.
Fees
This type of property permits the tenant to cover some of the investor’s costs, which could lead to a higher rental return for the investor.
One-Stop Solution for R2SA Investment Needs!
Keep your investment journey moving forward with the R2SA investment opportunity in Manchester. Are you looking for serviced accommodation in Manchester? Getting the best investment deals is easy with Pluxa Property.
Having served investors for over a decade and being a professional property investment company, we have resolved a wide range of issues related to serviced apartments for our clients.
As property investment experts, our team of experts will be able to assist you in making a significant impact on the future of your investment landscape as we go forward.
Rent-to-service properties are a great way to achieve all your investment goals.
FAQs
Are serviced apartments profitable?
The real estate industry is characterized by its high-profit levels in many segments, including the rental of serviced apartments. For many investors, renting their property is an excellent way of generating more revenue.
How long can I stay in a serviced apartment?
There is a serviced apartment that is primarily intended for long-term stays of more than a month. It is possible to book short stays as long as a week or more, depending on the local laws and regulations.
Why are serviced apartments cheaper than hotels?
The monthly rent does not include any hidden costs. The monthly rent consists of property management fees, utilities, property tax fees, and weekly cleaning services. Additionally, you will receive internet service as part of your package. The rate for a service chamber can be lower than a hotel, not only in terms of the average price, but the rate also tends to decrease as you stay in the facility for longer.
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.
