What is Serviced Accommodation (SA)?

Ever heard of serviced accommodation in the UK? There are similar terms like furnished holiday let, furnished short let, and short stays. These phrases might not be familiar to many landlords, but for property investors, they're pretty well-known.


Instead of a traditional buy-to-let, turning your property into serviced accommodation releases the income generating potential of the property to boosts your return on investment (ROI). When you invest a bit of extra money on furnitures, amenities and staging on top of the already done refurbishment, you make your property a hotel standard, if not better, to charge the people who stay in there on a nightly basis, rather than monthly rental, for however long you want the property to be.

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Though the concept is pretty clear, it is easier said than done. Shorter stays mean more turnover of the guests, hence more cleaning is needed. Furnitures and amenities are provided means more maintenance is needed. Also, marketing has to done to ensure bookings come. From a landlord point of view, this workload seems violate the purpose of getting passive income through owning a property.

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That’s where short stays management companies come into place to help theses landlords. There are two common models of these companies works off. The first one called management model where they take a percentage off the bookings and the landlords keep the rest for their profits. The second one called Rent to SA model where these companies pay a guaranteed rent to the landlords and completely take the landlords’ risks out of their hands.

Want to turn your property into a serviced accommodation? Please feel free to contact us.

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