Successfully Sourced Serviced Accommodation PropertiesThere are a multitude of strategies around for investors to choose from, each providing an avenue for investors ro reach their property portfolio objectives. Selecting which strategy to commit to is largely based on what an investor's objectives are and the advantages that a particular strategy presents.
Whilst experienced investors are likely to have a variety of strategies within their property portfolio, it is only natural that many investors will have their preferences.
In our experience, serviced accommodation properties are often chosen by investors who wish to maximise their monthly side income.
Potentially maximising profits, however, is not the only benefit paired with serviced accommodations. Serviced accommodation properties are desirable for many investors as, while generating a nice monthly income, they potentially require less management from the investor themselves. Perfect for those who are time poor.
Serviced accommodation properties are rented out on a night by night basis, much like a hotel, usually providing guests with a ‘home-from-home’ experience. This style of investment is often popular amongst property investors as there is the opportunity to hire a management company to handle their serviced accommodation needs, freeing them up. Ultimately, this can potentially give investors less responsibilities than being a buy-to-let landlord.
Serviced Accommodation PropertiesThe first serviced accommodation we take a look at is a spacious two bedroom, second floor apartment located in one of Scotland’s bustling town centres. This property has the luxury of off the street parking, giving guests added security.
The location of this property thrives from tourism, making it the ideal place for a serviced accommodation property due to demand.
This property was sourced for our investor at £39,999.99 and after refurbishment, our estimated done up value is £70K. Utilising a serviced accommodation strategy for this property allows it the potential to bring our investor almost £900 per month.
Our next property is a one bedroom flat, blessed with a large kitchen with the potential for conversion. We utilised the space offered by this large kitchen and worked with our investor and renovation partner to renovate the kitchen into a second bedroom.
This increased the value of this property and its potential greatly.
This property was sourced at £50K and after maximising capacity and adding a second bedroom, this property finished on an estimated done up value of £85K. With this additional bedroom our investor can earn up to £938 per month.
A recent property sourced for an investor came in at £35K, and after renovation and a cosmetic upgrade, the property finished on an estimated done up value of £55K.
This property is a two bedroom apartment with access to a local town centre and large hospital. With these making the location advantageous our investor chose to implement a serviced accommodation strategy. By doing so, our investor has the potential to earn approximately £1151 per month.
The final property we explore is a one bedroom, local property sourced for £55K. This property was in great condition and only required a cosmetic uplift. This brought the estimated done up value of this property to £65K.
Much like our previous property, this apartment is conveniently located near a town centre and large hospital.
The location of this property makes it ideal for business travellers and tourists, making it perfect for serviced accommodation. This is set to bring our investor an estimated £895 per month.
ConclusionServiced accommodation investment strategies are great for those investors hoping to potentially maximise their profits, however, securing the right property for this investment is vital in achieving maximisation.
This style of property investment potentially provides investors with greater freedom than if they were to be a landlord. Management companies which take on the responsibility of bookings etc. offer these investors relaxation in comparison to buy-to-let rentals.
As demonstrated throughout the exploration of our successfully sourced serviced accommodation properties, location is a vital player in determining the right property for this strategy. The location of a serviced accommodation property is a huge contributor to the success as it is often the key selling/rental point.
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.