Trends: what’s the appeal of serviced apartments?

Wondering whether this kind of property is worth investment in? We offer up some answers.

You may have heard through the grapevine that serviced apartments are rising in popularity among investors.

This is because, increasingly, serviced apartments are winning the battle for bookings against hotels even when they are the same price, largely because they appeal to the public on many levels.

A cosy feel, a ‘home away from home’ for the family, a place to hang their hat in solitude if they wish – unlike a busy hotel.

That’s all well and good, but what are the benefits for you, as the property supplier? Let’s take a look.

The promise of regulars

When you invest in a long-term property, you feel secure knowing your tenants will be around for a long time. Long-term being the key word of course. Serviced apartments offer a similar benefit.

Short-term tenants who frequent a specific locale are far more likely to return to a property, rather than finding a new one every time.

Businesspeople who frequently stay away from home are a prime example. Humans crave familiarity. That homely feel. That cosy value and comfort of familiarity really draws people in. Not only this, but it will also encourage them to return again.

You may end up with a family, or group of families, that return to your property every year. Perhaps someone who travels out of London often for work will frequent your serviced apartment several times a year, even. That recurring income is a great boon.

It’s also easier to form beneficial relationships with short-term tenants. Therefore, it’s easier for them to feel comfortable returning to your property. Regular holidaymakers are also more prone to tipping and / or paying in advance. People on their holidays are happier for one! But knowing you and your property personally will further encourage their generosity. Not necessarily a basis for investing alone, but a positive bonus all the same.

Less risk of damage

Despite a serviced apartment’s homely feel, it isn’t a home. It’s a temporary stay. This encourages people to feel at home, but not necessarily treat your property as their home.

Serviced apartment providers find that their tenants are ordinarily very clean and respectful. Partly because of the ‘happy holidaymakers’ note from earlier.

Also, because many serviced apartment tenants tend to be business professionals, if not on holiday.

Not only this, in a long-term property, the Landlord may not visit often at all. Perhaps once or twice a year at the least. Long-term tenants may see this as an opportunity to take liberties with property upkeep.

Serviced apartment tenants are different. They know that serviced apartment providers cycle tenants through often.

Any issues or damage is monitored and noticed quickly, to make the property as pristine as possible for the next tenant. This awareness urges them to maintain it themselves, in a similar fashion.

Chance for better selling value

If it ever comes to a point where you want to re-sell your serviced apartment, you could fetch a high price for it down the line. We mentioned earlier that serviced apartment tenants are generally tidier and more reliable. This adds up in the long run. As well as being a more immediate benefit.

Years down the line, your property has been well-maintained. By you and your tenants alike. The short duration of their stays (in comparison of usual buy to let tenant stay durations) means that you would be more active in managing the property. This phenomenal upkeep will only boost property value.

It’s also worth updating your serviced apartment. Additions such as hot tubs and gyms really ramp up the renting value.

Tenants who want to stay at your serviced apartment for a few months will appreciate these additions most, as they benefit from them for the longest. They will also pay more for them.

With serviced apartments, location is key. You’ll need to scope out the best location for your property thoroughly before buying.

Nobody wants to holiday in a zone that’s void of activity or natural beauty for example. These factors also boost property value. Therefore, they boost your chance for profit when selling later on.

Worried about missing out on long-term property opportunities?

Some landlords may worry that by focusing on short-lets and serviced apartments, you will miss out on long-term opportunities. The property market is ever shifting, after all. This doesn’t have to be the case though. As serviced apartments rise in popularity, more platforms are accommodating them. Clooper is one such platform.

Clooper is a marketplace of holiday lets, short term rentals, serviced apartments and long-term rentals alike. You can onboard all of your properties in one clear, easy to navigate place.

Clooper also places you in the driver’s seat: you control every aspect of your listing. Pricing, availability, and personal descriptions are all up to you. Clooper simply acts as a guiding hand.

What makes Clooper different?

There are a variety of platforms to join, but Clooper stands out for numerous reasons. Clooper has over 100 years of combined experience in real estate and digital transformation of traditional industries.

On their platform, you’re assured you’re getting top quality assistance from reliable people who have been where you are now. They empathise, understand, and are more than knowledgeable about how to assist.

Additionally, you’re not joining an empty platform. You’re aligning with a network already strong of hundreds of properties, and a happy client base of landlords and property suppliers.

This network benefits from Cloopers quality advertising, machine learning, algorithms and artificial intelligence. All this to match your properties to guests faster.

Clooper’s dedicated marketing team will also assist personally. They market your property to tenants and are always ready to step in to assist you, whatever you may need.

Each provider will even be assigned a dedicated account manager: one that will help monitor and manage their listings from start to finish. So what are you waiting for? Sign up with Clooper for free today and make the most of the serviced apartment popularity boom.

This article does not constitute investment advice and you are urged to speak to your financial advisors before making any investments.

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