Essentially, serviced accommodations are a ‘home away from home’. As a result, guests would expect a serviced accommodation to somewhat replicate their own apartments or houses. A serviced accommodation should include features such as:

• One or more bedrooms that are separate from the living area.
• A fully fitted kitchen including pans, plates, and cutlery.
• Tenants will usually expect a dishwasher, washer, and dryer.
• TV, WiFi, and desk space to facilitate anyone working from home.
• The costs should include electricity and water bills.
• Some would expect a frequent cleaning service too.

As you can imagine, these types of accommodations are soaring in popularity. They offer a living experience incomparable to that of a hotel. They are much more spacious, more affordable, and allow guests to be much more flexible. As a result, serviced accommodations are becoming increasingly popular with investors.

CityRise Verdict

There are endless positives to the serviced accommodation sector. Essentially, investors are renting out high-quality accommodations in good, central locations. Typically, research has shown that 91% of serviced accommodations are 14 nights or more. As a result, investors are more reassured of their stable income as their apartment will be occupied for a more definite period. Coupled with lower running costs, serviced apartments generally achieve much higher returns compared to other short-term lets.

If you ask us, investing in serviced accommodation is definitely a worthwhile path to go down. There is a reason the industry is booming, and the trend is likely to continue once the tourism industry gets back on track.  Also, with the changing demands from tenants seeking a home and a workspace, a serviced apartment offers much better facilities than that of a hotel.  As a property investment strategy, serviced accommodation has the potential to offer high returns if all details are carefully considered.