The 5 Benefits of Using Your Property For Serviced Accommodation
Serviced accommodation is becoming an increasingly popular option for travellers who seek a home away from home. It is a flexible and comfortable alternative to the traditional hotel or BnB, and with it’s popularity on the rise, property owners across the globe are capitalising on this by turning their own property into serviced accommodation for short-term let.
There are many myths about SA, with some believing it not to be the best option. However, in this article, we’re going to debunk those myths and look at five of the key benefits of using your property for serviced accommodation.
Increase your cash flow
One of the main reasons serviced accommodation is a good investment, is because of its potential to drive higher profits. In comparison to long-term rentals, holiday letting and short term lets can be charged on a per night basis and typically command higher premiums.
If you have a property in a popular tourist destination or main business hub, changing its use to provide serviced accommodation means you can tap into this booming market and enjoy increased revenue, maximising the return on your investment.
Less competition
The property market is ever-changing. However, the serviced accommodation market is less established when compared to other models such as HMOs or buy-to-let properties.
With this model of accommodation becoming more and more popular with travellers, there is huge potential and opportunity for property owners to maximise their asset. With demand increasing, for both holiday let-style accommodation and serviced apartments, now is the time to realise the potential of your property.
Say goodbye to wasted time
Holiday letting, or short-term letting, is a powerful way to increase your property’s cash flow. However, it can become a full-time job managing serviced accommodation when guests are visiting for short stays.
That’s where an SA management company, like ours, comes in. We help landlords to get the most out of their property, without giving up their time and freedom. By utilising a specialised short term let management company, you can hand over the day-to-day management of your serviced apartment. This means you get back your own time and freedom, all while boosting your cash flow.
High occupancy rates, year rounD
Serviced accommodation tends to enjoy higher occupancy rates throughout the year, compared to the traditional rental model. More people are realising the plethora of benefits of SA, both for business and leisure. Serviced properties tend to offer a bedroom alongside a living and kitchen space, making it more convenient and comfortable for travellers.
This paired with the ability to find these properties easily online, on platforms such as AirBNB and Booking.com, property owners are able to attract a steady stream of guests throughout the year.
Profit potential
Serviced accommodation not only contributes to increased cash flow from your property, but this model may offer possible tax benefits. SA can count as a furnished holiday let (FLT), and what this means is that for example, your mortgage interest may be able to be claimed as a tax allowance. Furthermore, there may also be opportunities to mitigate things such as Capital Gains Tax.
Ultimately, the potential tax benefits a holiday let or short term let can bring, further improve your potential for increased profits!
It’s essential that you get your own professional tax advice for your serviced accommodation from qualified tax advisors. They will be able to advise you of the advantages of SA, and the best way to maximise your investment.
Utilising your property for serviced accommodation offers many benefits to you, the property owner. You have the ability to increase your monthly cash flow, realise tax benefits and all without lifting a finger, if you have the right management team in place.
For more information about maximising your property asset, and turning it into serviced accommodation, get in touch with our team today.