Serviced Accommodation vs Buy-to-Let Rental
Serviced Accommodation vs Buy-to-Let Rental
Higher interest rates and increasingly hostile legislation has forced many landlords to consider switching to ‘Serviced Accommodation’, as opposed to the traditional buy-to-let standard AST tenants.
Serviced accommodation offers landlords the opportunity to increase their after-tax net returns, whilst avoiding many of the pitfalls linked to traditional buy to let, such as dealing with difficult tenants and the coming abolition of section 21 ‘no fault’ evictions.
In the past, landlords have been deterred from Serviced Accommodation due to the additional work involved. Traditional, letting agencies have been reluctant, or are just not equipped, to manage a Serviced Accommodation property involving guest turnover, bookings, cleaning, linen and so on.
But now there is a solution.
A new breed of specialist agencies has sprung up to satisfy this growing market by managing Serviced Accommodation properties at scale.
Open House South Herts has teamed up with one such agency that is actively seeking properties in the following areas:
Hertfordshire, Essex, Cambridge, as well as major metropolitan business areas in England.
They offer landlords a complete hand free full management service, taking care of bookings, changeover, cleaning and linen. Bookings come from a number of sources including corporate temporary lets and booking.com to ensure the 80% occupancy the company aims to achieve.
Landlords benefit from higher net rents and hassle-free management.
The management company offers agents a generous introduction fee without having to manage the property.
Serviced Accommodation properties should be furnished and decorated to a high standard. The company will advise on the recommended specifications. Landlords will need to inform their mortgage lender and insurer and some boroughs may require planning consent.
Whilst this may not work for every landlord, the is growing demand for this service.
If you are a property owner or landlord looking to increase your rental returns whilst reducing the headache of section 21, and the looming renters reform act, contact me at SouthHerts@localagent.co.uk
#propertymanagement #servicedaccommodation #lettingagents #section21 #rentalproperty
