The Benefits of Serviced Accommodation

March 6, 2021 1:37 pm

What is Serviced Accommodation?

Serviced accommodation investments are a great way of investors maximising the income on their property.

This investment type is exactly what it says on the tin - a property that is regularly serviced, providing a similar experience to a hotel stay. A serviced accommodation property is typically furnished, giving a home from home feel to its lodgers.

Serviced accommodation properties appeal to multiple markets - holiday makers, travelling business or construction workers or those who need to be closer to home for a short period of time. The target market of a serviced accommodation is highly dependent on its location as a result of the lodgers needs and desires.

Holiday makers are likely to search for a serviced accommodation stay which has access to shopping and leisure facilities with strong transport links. Meanwhile, they may desire an apartment with scenic views and access to nature.

Travelling business or construction worked will predictably require accommodation close to their work, an apartment which will make their commute easier.

For those looking to be closer to home for a short period of time this will largely be dependent on their reasoning for having to return home. This may be a family event, visiting or caring for a sick relative or another family commitment.

While location is a huge deciding factor regarding these decisions of these lodgers, investors and those who manage their serviced accommodations for them will promote the remaining unique selling points (USPs) of their property to attract their market.

While location is a huge deciding factor regarding these decisions of these lodgers, investors and those who manage their serviced accommodations for them will promote the remaining unique selling points (USPs) of their property to attract their market.


Owning a serviced accommodation property can bring an investor great returns as this style of investment can allow them to maximise their profit. Serviced accommodation properties utilise their USPs, allowing them to showcase the most attractive offerings of their property.

Serviced accommodation lodgers are presented with options of short-term or long-term stays, however, the most common stays are short-term.

Through renting their property to multiple occupants throughout the month an investor can earn a higher revenue than they would were they to rent their property out as a buy-to-let. Serviced accommodation prices are determined by the property’s offerings, its location and its market. This established rental price is then paid each time the property is rented.


This property is located in Greenock, Scotland - a town known for its historical ship building industry. Today, Greenock is a town which hosts offices for big name companies such as IBM, EE and RBS, the introduction of these offices grew the town's employment interests. This gives our property the opportunity to appeal to workers coming from out of town.

As a two bedroom, upper floor cottage flat this property will earn our investor up to £1151 per month.

With this property being within walking distance of the local hospital, it will also appeal to relatives with family in hospital.

The location of this property is also appealing as it is situated in a part of Greenock which neighbours Gourock. This will give occupants easy access to exploring both towns.


It is common for investors to hire another company to handle the rentals of their serviced accommodation, this allows them to be hands off. This can be daunting for some investors as their nerves grow due to establishing a relationship with their occupants not being possible as it is with buy-to-let investments.

This lack of relationship can make it difficult for investors with little experience in serviced accommodation investments to trust their lodgers, however, in our experience, occupants of serviced accommodations tend to be incredibly respectful, taking care of the space.


A key advantage of hiring another company to manage the rentals of a serviced accommodation is that it gives investors flexibility. This style allows investors to be as hands on or hands off with their investment property as they wish.

With short-term stays, investors are given the freedom to perform maintenance at convenient times rather than disrupting occupants (unless it is urgent of course). This reduces stress investors potentially experience when unexpected circumstances arise.


Investing in a serviced accommodation property can be an incredible addition to your property portfolio. This style of investment comes with an array of advantages, some of which present themselves as enhanced benefits of rental properties.

With buy-to-let properties you offer tenants a cosy property with great space and facilities within a convenient location that meets their needs and desires - serviced accommodations offer the same but bring investors a higher revenue.

Investors gain a higher revenue - often seeing a return of investment sooner in cases - as a result of earning a rental income per stay rather than monthly. This means income may vary month-to-month, however, it is most likely profits will be higher in comparison to buy-to-let rentals.

The beauty of a serviced accommodation investment is that it allows investors to be flexible. Through management responsibilities being delegated to another company investors can be as involved as they wish. This often allows them to concentrate on other investments in the meantime.

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.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Book a Discovery Call

    Get a free 30 minute call with one of our knowledgable property specialists to find out how you can maximise your property investments today.

    Call Today