From Long-Term Rentals to Short-Term Gains: A Guide for Property Investors Venturing into Serviced Accommodation

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Are you a property investor keen on diversifying your portfolio? 

Have you considered the booming sector of serviced accommodations?

About 54% of corporates choose serviced apartments over hotels, a significant leap from 19% in 2022.

This staggering shift in corporate preference underscores the booming potential of serviced accommodations. 

With such a dynamic change in the market, it’s evident that the landscape of property investment in the UK is undergoing a significant transformation. 

Dive in with us as we explore “Venturing into Serviced Accommodation: A Guide for Property Investors” and uncover how you can capitalise on this emerging trend for maximum gains.


Why Property Investors are Venturing into Serviced Accommodation?

The property investment landscape is ever-evolving, and savvy investors are always looking for the next big opportunity. Enter serviced accommodation, a sector that’s been gaining traction at an impressive rate. But what’s driving this shift?

  1. Changing Guest Preferences

Today’s travellers crave more than just a place to sleep for leisure or business. They seek experiences, comfort, and convenience. With their home-like feel and hotel-like amenities, served accommodations hit this sweet spot perfectly.

  1. Economic Viability

From an investor’s perspective, the numbers make sense. Short-term rentals often fetch higher nightly rates compared to long-term leases. Dynamic pricing strategies can also be employed to capitalize on peak seasons, events, or even last-minute bookings.

  1. Operational Flexibility

Unlike traditional rentals, serviced accommodations offer flexibility. Investors can switch between short-term and long-term lets based on market demand, ensuring consistent occupancy and revenue.

While the reasons for venturing into serviced accommodation are compelling, its benefits are even more enticing. Let’s delve into what makes this investment avenue a goldmine.

Key Benefits of Offering Short-Term Stays for Property Investors

The allure of serviced accommodation isn’t just in its rising popularity; it’s in its myriad benefits to property investors.

  1. Higher ROI

The potential for increased rental income is evident. With the ability to charge premium rates, especially during peak seasons or events, the returns can be significantly higher than traditional rentals.

  1. Diverse Clientele

From tourists exploring the city to business executives on work trips, serviced accommodations cater to a wide audience. This diversity ensures a broader market reach and consistent demand.

  1. Value-Added Services

Beyond just accommodation, investors can offer additional services – think airport transfers, breakfast options, or guided tours. These not only enhance guest experience but also open up additional revenue streams.

  1. Reduced Vacancy Periods

Thanks to platforms like Airbnb and Booking.com, listing and marketing serviced accommodations have become easier than ever. This accessibility ensures higher visibility and, consequently, reduced vacancy periods.

With these benefits in mind, it’s clear that serviced accommodation is more than just a trend; it’s the future of property investment. But what does this future look like?


The Future of Property Investment with Serviced Accommodation

The trajectory for serviced accommodation looks promising. As the lines between hotels and homes blur, this sector is poised to fill the gap, offering the best of both worlds.

  1. Technology Integration

The future will see more tech-driven solutions in serviced accommodations. Technology will be pivotal in enhancing guest experiences, from smart home integrations to AI-driven customer service.

  1. Sustainability

With a global push towards sustainability, eco-friendly serviced accommodations will be in demand. Investors can look at sustainable practices in construction and operation to appeal to the environmentally conscious traveller.

  1. Local Experiences

Travellers are increasingly seeking local experiences. With their local touch, serviced accommodations are perfectly poised to offer authentic experiences, be it local food, culture, or traditions.

  1. Collaborations and Partnerships

There’s potential for serviced accommodations collaborating with local businesses, be it cafes, tour operators, or artisans, further enhancing the guest experience and contributing to the local economy.

In conclusion, the future of property investment looks bright and promising, with serviced accommodation at its core. For investors willing to adapt and evolve, the opportunities are endless.

This detailed breakdown, infused with keywords and structured logically, provides a comprehensive overview of the topic, guiding readers through the reasons, benefits, and prospects of venturing into serviced accommodation.

Following the detailed exploration of serviced accommodation, one might wonder, “How do I navigate this promising yet intricate landscape?” 

This is where professional guidance becomes invaluable. For property investors, associating with a seasoned property advisor is not just beneficial – it’s essential. 


Navigating the Future with Expert Guidance

The journey into serviced accommodation, while promising, can be intricate. It’s a landscape filled with opportunities, but like any investment avenue, it comes with challenges. 

To truly capitalise on its potential, having a roadmap is essential. And who better to craft that roadmap than experts who’ve been there and done that?

Pluxa Property offers a comprehensive serviced accommodation business plan tailored to your needs. Our expertise ensures you’re not just entering the market but doing so with a strategy designed for success. 

Our holistic guidance includes understanding local market dynamics, crafting pricing strategies, and forging local partnerships.

While the future of property investment in serviced accommodation shines bright, partnering with seasoned professionals like Pluxa Property can ensure that brightness illuminates your investment journey.


Why should property investors consider venturing into the serviced accommodation market?

Property investors should consider venturing into the serviced accommodation market for several compelling reasons:

1. Higher returns on investment: Serviced accommodations often command higher nightly rates.

2. Diverse revenue streams: Opportunities for additional services like airport transfers or breakfast options.

3. Operational flexibility: Ability to switch between short-term and long-term lets based on demand.

4. Growing market demand: Modern travellers seek a blend of home comfort with hotel amenities.

5. Reduced vacancy periods: Online platforms like Airbnb ensure higher visibility and consistent bookings.

6. Adaptability to market trends: Quick adaptation to emerging trends like smart home technology.

7. Asset appreciation: Strategically located accommodations can appreciate value over time.

8. Diversification of investment portfolio: A different asset class that spreads risk and offers stable returns.

What are the key benefits of offering short-term stays for property investors?

Here are some of the key benefits of offering short-term stays for property investors:

1. Higher revenue potential
2. Dynamic pricing
3. Frequent turnover
4. Flexibility in management
5. Diverse clientele
6. Value-added services
7. Positive cash flow
8. Enhanced property maintenance


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