Why serviced apartments could be the next big investment
Serviced apartments are a relatively new form of investment in the accommodation industry, but one that has seen a big growth. The serviced apartments industry has been the steadiest performer in the accommodation subdivision over the past decade. Thanks to modern life, people travelling for business is becoming a norm with extended stays becoming more common. When put in this situation, wouldn't you rather stay in a home away from home, as opposed to a bedroom with an en suite? Serviced apartments give clients the freedom to live a normal life, free from the constraints of living in a hotel for weeks at a time.
Low risk, low effort, high reward
There are plenty of different companies to choose from when it comes to investing in a serviced apartment. These companies differ in the level of involvement, meaning that it is easy to find the right one for you. If you wanted to take the most hands-off approach possible, invest through a company that takes care of the property, from housekeeping to booking.
If you are looking at taking a more hands-on approach to this, purchase the property yourself, and get stuck in creating your business venture.
Due to the nature of serviced apartments, it is much easier to make a steady income, avoiding the lulls in income that you might experience in other industries. A bed and breakfast, for example, would not be taking in money throughout the year, only during peak holiday times. Renting a property to tenants has the risk of long periods of searching for new tenants, potentially leaving the property empty for extended periods of time, turning an investment into a serious drain.
By investing in a serviced apartment, you appeal to a much wider base of income. You can still rent the property out to holiday-makers who are perhaps looking for an extended stay but without the hassle of hotel life. Then, when outside of peak holiday times, you can rent the property to people who are travelling for work. This fills in those gaps of no income, and whilst there will be a higher turn-around than renting to tenants, the income will form a much steadier flow.
Perhaps one of the best features of this investment is that you can use it yourself. Perhaps you fancy a weekend break or a more prolonged stay visiting family and friends. The apartment will always be there for yourself to make use of when you need it.
For more information on serviced apartments, contact a company like Executive Living.