What is Rent to Serviced Accommodation?
Renting to serviced accommodation is a unique concept that involves leasing a property from a landlord and then renting it out, often on platforms like Airbnb, to generate profit. It’s a strategy that combines the comforts of home with the convenience of a hotel, offering traveler’s a more personalised experience. But how exactly does it work, and why has it become so popular?
The Basics: How it Works
The process begins with you, the aspiring serviced accommodation entrepreneur, finding a suitable property to rent from a landlord. This property can be an apartment, a house, or even a single room, depending on your budget and preferences. Once you’ve secured the lease, you transform it into a cozy haven for traveler’s.
Furnishing and Decor
One of the key aspects of making your serviced accommodation stand out is the interior design and furnishings. Think of it as your canvas to create a stylish and comfortable atmosphere. British charm, modern elegance, or a quirky theme – the choice is yours. Invest in quality furniture, comfortable bedding, and ensure that the property is well-maintained.
Cleaning and Maintenance
Maintaining the cleanliness of your property is paramount. Just like a hotel, guests expect a spotless environment. Consider hiring a cleaning service to ensure that the accommodation is pristine for every guest. This attention to detail can lead to positive reviews and repeat bookings.
Legalities and Contracts
Here’s where things get crucial. To rent out a property on platforms like Airbnb, you must have the proper permissions and adhere to local regulations. This is where your contract with the landlord comes into play. It’s essential to have a written agreement that explicitly states your intentions to use the property for short-term rentals. Make sure to communicate openly with your landlord and ensure they are comfortable with your plans.
The Profit Potential
Now that we understand the basics, let’s dive into the exciting part – the potential profits. The beauty of serviced accommodation is that you can earn a substantial income, even if you’re just renting out a spare room in your own home. Here’s a simplified example of how you can easily make £1000 profit per month:
Calculate Your Nightly Rate: Research similar listings in your area and determine a competitive nightly rate for your accommodation.
Occupancy Rate: Assuming a 70% occupancy rate (which is quite reasonable for well-managed properties), calculate the number of nights your property will be booked each month.
Crunch the Numbers: Multiply your nightly rate by the number of nights booked. Deduct any expenses like cleaning fees and listing platform charges.
For instance, if you charge £70 per night and your property is booked for 20 nights in a month, your gross income would be £1,400. After accounting for expenses, including cleaning and platform fees, you could easily pocket £1,000 or more in profit.
The Benefits of Renting to Serviced Accommodation
- Flexibility: You can start small, perhaps with a spare room, and gradually expand your portfolio as you gain experience and confidence.
- Tax Benefits: In the UK, there are tax advantages to renting out your property as serviced accommodation, such as claiming expenses and allowances.
- Positive Cash Flow: With the right pricing and occupancy, you can achieve positive cash flow, making it a lucrative investment.
- Personal Use: You can still use the property for personal purposes when it’s not booked by guests, making it a flexible option.
Conclusion
Rent to serviced accommodation can be a lucrative venture, offering both financial rewards and a unique hosting experience. Remember that the key to success lies in proper communication with your landlord, meticulous property management, and adherence to local regulations.
So, if you’ve ever considered turning your spare room or vacant property into a profitable venture, now might be the perfect time to explore the exciting world of serviced accommodation. With the potential to earn £1000 or more in profit per month, it’s an opportunity worth considering in the UK’s evolving hospitality landscape.
