Here at Family Homes, we’ve helped both sides of the coin when it comes to home and property law – landlords and tenants – and one of the most popular enterprises facing landlords in this day and age is the concept of the investment properties. As managing director, I’ve been able to take a closer look at an increasing interest in what is being called Serviced Accommodation, or SA – where landlords and owners are renting out flats, homes and units to clients on a nightly, self-catering basis – which come with all mod cons fitted.
The point of SA is, ultimately, to provide consumers with spaces that are like homes away from home – often on a luxury basis, with all appliances, entertainment services, Wi-Fi and more fully installed and provided without fuss. From the renter’s point of view, it’s a fantastic opportunity – as there are so many self-catering opportunities that fall below the mark of quality many of us come to expect – but from where I’m standing, getting into the SA game could be a lucrative move indeed for investors and landlords.
SA, for one, is booming. It’s becoming hugely popular with business travellers in particular, making a well-placed, fully-fitted apartment an extremely attractive prospect for anyone who is keen to take control of their stay as opposed to staying in a hotel room. For landlords – and in my opinion – you’re essentially looking at a guaranteed boost to regular income providing you install and maintain in a commuter area or a city of interest. The service costs, too, are considerably cheaper in maintain SA than they are via the hotel industry. Lower costs and increased revenue add up to a no-brainer conclusion – more money for investors!
From a long-term perspective, I’ve noticed that buying now – or in the very near future – is a very safe move indeed. This industry is set to double in size in the years to come, meaning that an outright purchase will likely result in you taking control of a property on SA basis with added equity in the bargain. Markets are suggesting an increase in supply growth by around 8.4% by the year’s end – which is really stretching ahead in comparison with hotel equivalents.
Some investors and landlords are upgrading a selection of their current properties in order to offer serviced accommodation with the aim of increasing the rental income from the asset, which is vital given the forthcoming tax changes which have been introduced under section 24 of the Finance Act.
In my opinion, investing in SA now will be more than savvy – take it from me as a seasoned investor – providing you are willing to put the time in to research the market, and to ensure that you and maintain and supply SA to a booming and regular audience, there is absolutely no reason why you won’t be able to make a healthy return on this type of property. Luxury, fully-fitted self-catering accommodation is very big business in 2017 – don’t let it pass you by!
If you’d like more information on the advice and services Family Homes provide, please don’t hesitate to call our team on 01795 473434 or by emailing me directly via firstname.lastname@example.org.
Director, Family Homes