There are many investment strategies out there to choose from, each offering their own key benefits to your objectives, helping you reach success. Finding the right strategy, however, can prove to be a tedious task and is therefore, a decision that must be made carefully.
When investing in property patience is vital. Investing in property can be a great financial gold mine, but it can also be a commitment that comes with pressures. Often though, investors believe these pressures are worthwhile and contribute to something greater.
Deciphering which investment strategy is right for you and your investment goals is typically one of these stresses. This is why it is essential to take your time.
Serviced accommodation strategies are a popular option for property investment and are known to present multiple benefits.
Extra IncomeA main aim of property investment is to make an additional income. Serviced accommodation property investments allow you to potentially maximise your income on the property you are investing in.
Running on a night by night rental basis, serviced accommodation presents you with the opportunity to charge your tenants per night, which may lead to the earning of a higher profit than that offered by other strategies such as buy to lets.
located near a shopping centre and great transport
2 bedroom apartment
TenantsServiced accommodation properties utilise a similar model to hotels. People are likely to rent a serviced accommodation property in an area that is convenient to them whether that be for contracted work, visiting from out of town etc.
This means people often occupy the property for a short period of time. Experience over the years has demonstrated to us that this can be viewed as a benefit of the strategy. This is because properties are being rented for a clear purpose and often a short time.
This has led us to find that serviced accommodation tenants are typically good tenants to have.
ManagementTime is a huge resource that many investors are limited in due to other commitments. This means they are often lacking the freedom they would like to provide undivided attention to a property investment project.
The beauty of opting for a serviced accommodation strategy for your investment property is the limited management required. With a serviced accommodation strategy an investor has the opportunity to pass management responsibilities to a professional company who then handles bookings etc on their behalf.
Serviced accommodation investors can also be found sharing responsibilities such as cleaning and maintenance with other companies, reducing their responsibilities further.
Portfolio DiversityPortfolio diversity is often a top objective for investors. Diversifying their property portfolio can reduce the risk they face when investing in property. Investors can diversify their portfolio through strategy, giving them a mix of advantages to benefit from.
Investors can also diversify their portfolio in the type of property they invest in. With serviced accommodation properties this can be in location, size/ capacity, market etc. There are many opportunities presented by portfolio diversification.
ConclusionChoosing serviced accommodation as a property investment strategy is a great choice for many investors.
This type of strategy is a fantastic opportunity to potentially maximise an investors income on a property. With the right location etc an investor may be onto a gold mine investment.
A great risk in property investment is moving on to let your property out to other people. This requires a great deal of trust that they will look after your property, hopefully in the way that you would. Serviced accommodation investments are often a preferred option amongst some investors as their tenants' stays are short, increasing their opportunities to do checks on the property.
Investors typically have little free time on their hands, meaning their freedom to allocate focus to managing an investment property is lacking. Serviced accommodation properties allow investors to reach out to other professionals, such as property management companies, and utilise their assistance in the running of their serviced accommodation.
Diversifying their property portfolio is important to many investors, potentially increasing their opportunities for investment success. This is because when an investor has different investment types and properties on their portfolio they benefit from different advantages. Choosing not to diversify a property portfolio is essentially placing all of your eggs in one basket which may lead to disaster.
Disclaimer: This is information based on our knowledge gained throughout years of experience, education and learnings. This information is open to interpretation, therefore, you must carry out your own due diligence regarding the subject.