The Thriving Market of Serviced Accommodation
Success in real estate investing is not just confined to the conventional buy-to-let model. When looking at investment options, some may question if a serviced accommodation plan benefits investors. Serviced accommodation is the part of the real estate market that is growing the fastest because it is good for both tenants and landlords. This blog will give you the background information you need on why serviced residences are growing in popularity, whether you’re planning prime selling points to market your serviced accommodation, wanting to grow your rental portfolio, or considering where to stay on your next trip.
What is Serviced Accommodation?
To begin with, serviced accommodation is a private, self-contained home. These residences feature private entrances, separate bedrooms, living areas, kitchens, and lounges. A studio flat, an apartment, or even a villa all fit into the serviced accommodation category. All serviced homes benefit from inclusive utilities, housekeeping service, and a team of guest concierges on site to help. Visitors stay in the property with everything they would find in their own homes and pay a flat rate for their accommodation.
Benefits of Serviced Accommodation for Tenants
Renting a self-contained serviced property enables visitors to experience the privacy they wouldn’t be able to in a hotel. Reduced housekeeping ensures that guests may genuinely make themselves at home throughout their stay and that they are seldom disturbed while still experiencing the benefits of hotel-like service. The top reasons why serviced accommodation has exploded in popularity are detailed below.
Serviced accommodations are often complemented by on-site luxury amenities and in-house smart home systems. For example, Royal Blue Villas provide tenants with top-notch deluxe facilities, including a large infinity pool, a private jacuzzi, an associated beach club, and quarters for a live-in maid. Furthermore, below the infinity pool, there is usually space for installing a cinema room or private spa room, which will give the property the edge in attracting tenants to this high-end serviced accommodation.
As we’ve already mentioned, serviced accommodation provides a home-like experience that is impossible in a hotel and, more crucially, is substantially larger. Tenants have the space and freedom to work, relax, cook, and host in comfort and privacy. Our luxury serviced villas boast four en-suite bedrooms and two open-plan living rooms with bountiful space for up to ten guests to stay in comfort.
Whether a business traveler or a tourist, serviced residences are a great way to save money. Corporate clients are drawn to serviced accommodation because of its affordability, which is one of the factors driving demand for this type of accommodation. Incidental business expenses are also far less expensive than they would be for a hotel at a corporate rate, as there are no room service or restaurant charges. For business and leisure travelers, multiple occupancies of a serviced home also offer significant value. Sharing a two or three-bedroom property with en-suite facilities with coworkers or family does not compromise privacy. Still, the two-week overall cost will be far cheaper than several hotel rooms for the same duration.
Privacy and Flexibility
The adaptability of serviced accommodation is beneficial for tourists and business travelers alike. During their stay, tourists can come and go as often as they like, host friends in the dining room or lounge, and make the most of their rental property. Furthermore, business travelers can hold meetings and workshops at their serviced accommodation when time is limited and pressure is high.
Benefits of Serviced Accommodation for Property Owners
To increase the yield on their rental investments, landlords and property owners are quickly shifting to serviced accommodation. These exclusive rental properties can generate far more significant rental revenue as a real estate strategy than properties leased for extended periods. Another appealing factor is that a landlord doesn’t have to worry about tenancy agreements. Also, the probability of vacant periods will be reduced if the serviced property is in a desirable area.
Attractive Rental Returns
One of the reasons serviced accommodation is comparable to hotels is that, unlike other types of property, it can be billed on a nightly basis. Additionally, serviced properties can be marketed for peak season periods and public holidays to further increase rental yields. That’s why they are significantly more lucrative than traditional buy-to-let rental apartments or houses.
Appeal to Multiple Tenant Profiles
If your serviced accommodation is in a premium location, such as our villas at Royal Blue Istanbul, it will draw visitors from all profiles. Business travelers, digital nomads, and international jet-setters all desire serviced accommodation. Furthermore, short-term tenants, such as business travelers, who frequently visit a particular area are considerably more inclined to revisit a property than to look for a new one each time. This is great for ensuring your downtime stays at a minimum.
Flexible for Short and Long-Term Rentals
The ability to rent your property for short-term or long-term stays is beneficial. Consider that your property is in a seasonal tourist hotspot. You can charge premium rates during the peak season months and offer short-term stays to maximize your occupancy. Balance this during the low-season months with longer-term tenants who may stay for a month or two while exploring the area off-season.
Serviced Accommodation at Royal Blue Istanbul
We can see that serviced accommodations offer attractive benefits for real estate investing. Due to the evolving needs of travelers looking for a location to stay and work from, this accommodation type is at the forefront of the market. The probability of earning strong returns and minimizing void times makes serviced accommodation an excellent addition to your investment portfolio. Additionally, because leases are shorter, as an owner, you can periodically use your serviced accommodation. It could be very convenient if you intermittently visit the area where you own investment property. Our Royal Blue Villas development offers affordable luxury villas in a prime location, so contact us to learn about our unique investment opportunity.
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