It’s safe to say that demand for serviced accommodation is still growing, and business is still booming. Serviced accommodation (SA) isn’t the risk riddled strategy it used to be. We’re here to tell you how you can make it work as a high cash flow strategy, for you. Done well, serviced accommodation can be a stylish, comfortable alternative to traditional hospitality accommodation. With a huge increase in people working more flexibly, professionals are seeking a homelier place to lay their heads whilst travelling for work. It is also appealing to families seeking a break in a different city who wish to cook their own meals in the comfort of a private, more homely setting.
The “Wow” Factor
One way that SA can really set you apart from other kinds of property investment is the opportunity to “wow” guests with extra services. These can be designed to make their stay extra convenient, such as free airport transfers, luxury food and toiletry hampers upon arrival, or even more luxurious offerings such as chauffeur service, arranging a private chef, or champagne and flowers being laid out in the property for a special occasion. It really gives you the opportunity to add that extra personal touch that you wouldn’t necessarily get in other types of accommodation.
Listen to Your Guests
According to the Global Service Apartments Industry Reports, by the Apartment Service, 79% of consumers now value online reviews as highly as personal recommendations, and 80% of travelers use the internet to plan their trips. Guests may be staying for longer periods in serviced accommodation, so many will want to research their accommodation more closely. You should regularly be checking and responding to guest reviews online. Top Tip: By offering a discount, a voucher, or some other low-cost incentive for a guest to review your accommodation or fill out a questionnaire, you can learn from your guests’ experiences, simultaneously taking their comments on board and gaining precious online reviews. This also serves to increase your website’s SEO and your accommodation’s online credibility. Flexibility is Key, Right? People love choice. If someone is considering longer stays at your property they may be more likely to stay if you provide an added incentive for doing so, such as lower rates for stays over a month. By offering short- and long-term rental options and incentivising the prices and services provided between them, you can attract a variety of customers for both kinds of rental term, thereby potentially reducing your void costs. Do your Due Diligence Keep an eye on both the hotel industry, which serviced accommodation is disrupting, and the moves of your serviced accommodation competitors. The current boom means that trends are adjusting and altering at a faster rate than in other market niches, and what is popular in one area and at one price range may be different in other places and at other rates. By keeping yourself up to date with industry standards and opportunities in both the traditional hospitality world and the serviced accommodation market, you will be able to identify any trends and how they affect each other. Would You Stay Here? Location is absolutely essential when it comes to serviced accommodation. Would a female travelling alone feel safe here? Would someone travelling for work at unsociable hours be comfortable arriving in the middle of the night? Someone is coming for a holiday, are there bars, cafes, restaurants, and shops nearby? Guests staying in serviced accommodation are likely to prioritise convenience and security, so make sure that you can give your target market everything they expect from your accommodation, and more. You might want to install CCTV, for that extra level of security that some serviced accommodation users might expect. Get Your Marketing Strategy Right Think about how are you going to appeal to your ideal customers and attract the attention of future guests. Your marketing strategy will depend on your target market. You will want to put some intensive research into getting your brand and your property under the noses of potential customers. If you have a website, make sure that it is responsive to any handheld devices and that your SEO targets effective search terms. Priorities There are many pros and cons when it comes to serviced accommodation, and you will of course need to weigh these up before moving into this area. The amount you can charge per week and per month far exceeds what you can realistically charge for a 6-month contract in a traditional buy-to-let scenario, but without the necessity for long-term contracts you risk having an empty property for some of the year. There is also the consideration of the extra expenses as well as the initial outlay of extra security equipment, insurance, etc. If you decide to pursue serviced accommodation, start small by converting just one or two properties before deciding whether you wish to expand further.
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