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3 secrets to find properties for Serviced apartments!

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Serviced Apartment

3 secrets to find properties for Serviced apartments!

How journey to serviced apartments begins.

The well-greased machine of serviced apartments takes a lot of astute and intuitive planning after collating a diverse range of information about its operations.   

 On the surface, a service accommodation appears to be a smooth-running business, seemingly bringing a solution to an array of issues from the guests, investors to the developers. But getting to a constant state of preparedness in anticipation of potential issues comes from years of experience and trial and error.

So, if you are a first-time investor in the service accommodation business, we are here to give you some pre-requisite knowledge that we have accumulated over the years as successful businesspeople in the area of service accommodation.

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Know your clientele 

In order to run a successful business, the first step is to have a deep understanding of the target audience of your service. Service accommodations usually have two to three types of clients. Short-term Vacationer, Short-term Business traveler, Long-term Business traveler.

Now, all three of them have a basic set of needs like space, comfort, amenities like Wi-Fi, transportation services, restaurants, supermarkets, etc.

But you might have to cover the difference depending on specific requirements. For example, a business traveler might need a work desk, an extra bed if there is more than one person in the apartment, etc.

You will have to decide whether you are going to be running a service leaning more towards the leisurely or the working.

This is not always an either/or decision. There are plenty of service apartments that serve both types of clients but location plays a major role in it.  

Know your location 

Based on the clientele, you need to do extensive research about the location that will best suit the client’s needs.

For instance, if you are planning to run a Service accommodation for people traveling for work, you need to invest in properties in cities that see a lot of corporate travelers like Manchester, Birmingham.

Otherwise, investing in cities that are holiday spots will lead to seasonal occupancies and will lay untouched for the rest of the year.

If you wish to run a seasonal holiday letting, you should do research about popular holiday destinations and try to provide what is majorly lacking in the market in a cost-efficient way, and you will see more activity during those times.  

Know your property 

After finalizing these two factors, the next step is to find suitable properties that fit these requirements. It is always advisable to look for properties in the heart of the city, close to good restaurants, supermarkets, popular tourist spots and, have an easy commute.

Of course, there are some clients who will prefer a remote location away from the city but the majority of customers feel unsafe if their stay is inaccessible to local stores, police stations, hospitals, etc.  

Space is always a welcome characteristic of any apartment. Hence, people usually prefer living in a one or two-bedroom that has enough room in the dining area and a fully equipped kitchen.

Studio apartments are usually not found to be convenient among the customers as they wish to sleep in a room that is separate from their living and kitchen areas. These kinds of properties are also quite easy to scout and to get permissions for.

We have found that things get a little complicated starting from three-bedroom apartments. They involve more paperwork, leg work, legal work, etc.

You can alternatively, squeeze in an extra bed in the living room essentially making it a three-bed apartment within the space of a two-bedroom, cutting down several bureaucratic issues.  

The most enticing part about a service accommodation is the service aspect of it. It goes without saying that SAs provide significantly more services than any hotels in the same price range.

For instance, concierge, housekeeping, parking space, free Wi-Fi, a fully equipped kitchen that is ready for use, and a smart TV. And in some cases a communal space for residents with game rooms, gyms, pools, etc.

Find what best suits your business model and invest prudently. For more advice on the UK property market, visit Cash Flow With Property today!