FROM THE BLOG
2 Sydenham Road – Service accommodation part 2: First Floor
This is Part II of introducing Service Accommodation.
So, all things are possible. The thing is, it’s very flexible. It’s not as rigid as a buy-to-let, where you must have a 6-month AST, assured short-hold tenancy as a minimum.
Quite often, the type of property that’s used for serviced accommodation is the same sort of property that you would use for a buy-to-let or a single-let. However, when it’s used as a serviced accommodation, the type of property although it’s the same, it’s going to generate much higher returns. Why? Because the type of fees, which we could call rent, which you can command for per night or per short stay, will be proportionately far greater than the amount you can charge for a 6-month or a year tenancy.
So, for example, it may be that, if your serviced accommodation unit is a typical sort of standard buy-to-let, you may get, £500 a month for it, depending upon where it is in the country. But you may be able to charge something like, £80 per night for it, if you’re using it for serviced accommodation. Now, of course, you’re not going to necessarily have it occupied every night. But you only need a fairly decent occupancy rate for those £80 per night to be more than the £500 per month, that you get on assured short-hold tenancy.
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