Investing in Serviced Accommodations: A Beginner’s Guide

If you’re considering investing in property, serviced accommodations can be an attractive option. These properties offer flexible and convenient accommodation to short-term guests, such as business travellers, tourists, and people relocating for work. As a beginner, investing in serviced accommodations can seem daunting, but it can also be highly rewarding if you take the right approach. In this beginner’s guide, we’ll cover everything you need to know to get started.

1. Research the market

Before investing in any property, it’s important to research the market thoroughly. Look for areas where there is high demand for serviced accommodations and where there is limited competition. Consider the demographics of the area and the types of guests who are likely to stay in your property.

2. Choose the right location

The location of your serviced accommodation can make or break your investment. Look for areas with good transport links, close to amenities and attractions, and where there is a high demand for short-term accommodation. You may want to consider investing in a city centre property, which tends to attract a high volume of guests.

3. Determine your budget

As with any investment, it’s important to determine your budget before you start looking for properties. Consider how much you can afford to invest, as well as ongoing costs such as property management fees, utilities, and insurance. Work with a financial advisor or accountant to determine the best financing options for your investment.

4. Choose the right property

Once you’ve determined your budget and the right location, it’s time to choose the right property. Look for properties that are spacious, well-maintained, and ideally already furnished. You’ll want to ensure that the property meets health and safety regulations and is accessible for guests with disabilities.

5. Work with a property management company

Managing a serviced accommodation property can be time-consuming and stressful, especially if you’re new to the industry. Working with a property management company can help you maximise your returns while minimising your workload. They can handle everything from marketing and booking to cleaning and maintenance, leaving you free to focus on your investment strategy.

6. Set up your property for success

Once you’ve chosen your property and partnered with a property management company, it’s time to set up your property for success. Make sure the property is well-stocked with essential amenities, such as towels, linens, and toiletries. Consider investing in high-quality furniture and appliances to ensure guests have a comfortable and enjoyable stay. You may also want to consider adding some personal touches, such as welcome packs or local recommendations, to make your property stand out from the competition.

7. Market your property effectively

Marketing your serviced accommodation property is key to attracting guests and maximising your returns. Work with your property management company to create a strong online presence, including a professional website and social media profiles. You may also want to consider advertising on booking platforms such as Airbnb, Booking.com, or Expedia to reach a wider audience.

8. Monitor your investment

Finally, it’s important to monitor your investment and make adjustments as needed. Regularly review your pricing strategy to ensure you’re charging competitive rates for your property. Pay attention to guest feedback and make improvements where necessary to ensure you’re providing a high-quality guest experience. Work closely with your property management company to stay up-to-date with industry trends and maximise your returns.

Investing in serviced accommodations can be a profitable and exciting venture for beginners. By following these tips, you can set yourself up for success and achieve financial freedom through property investment.