Convenience is essential when you move into a property.
Whether staying there long-term, or only for a short while, you will often prefer a place with many amenities.
There are lots of places to stay that offer exactly this.
Landlords are investing in this type of accommodation all over the UK.
This style of living is often described as serviced accommodation.
But what is serviced accommodation? And is it the right option for you? Keep reading to find out.
What is serviced accommodation?
Serviced accommodation is a short-term rental property that comes with several amenities.
Travellers often stay in these places and businesspeople in town for work.
It is more common in urban areas.
Examples of amenities in serviced accommodation might include:
- High-speed broadband
- 24-hour concierge services
- Cleaning
- Housekeeping
- A games room.
And more.
You usually pay a slight premium for these extra services.
That’s why landlords target people who are only in town for a short time. They are often willing to pay more for a luxurious experience.
It is rare for serviced accommodation to be in a detached property. This is because a concierge cannot quickly get to you 24/7.
It is also more affordable for the landlord to share serviced accommodation between dozens of people. It is thus most common in apartment buildings.
How common is serviced accommodation?
A report by Bonard found that there are more than 56,700 serviced apartments in the UK.
Almost half of these are in London. Business travellers account for 45% of guests.
Serviced accommodation booking has become more prevalent in recent years. Lots of landlords enable bookings through AirBnB and Booking.com.
Increased travel in the post-Covid years has also seen growth in this industry.
Most people consider serviced accommodation a form of ‘holiday let’. It therefore makes sense that most of these are in London, where tourism is highest.
Major tourist hotspots all over the world will have these properties.
How much does serviced accommodation cost?
Your budget for serviced accommodation will vary depending on your city.
If you’re in London, the average price for an Airbnb is £174 a night. You can expect a serviced apartment to be slightly above this per night.
Most reports find that serviced accommodation is less expensive than a hotel.
Urban Stay argues that you will save more than 30% by booking a serviced apartment compared to a hotel room in the same area.
Keep in mind that serviced accommodation often involves a basic apartment. You will rarely have lots of square footage. This brings the price down slightly.
It depends on the circumstances, but it is often less expensive than a non-serviced apartment with a similar square footage.
Do research for the city you’re looking for serviced accommodation in. Gather prices from several websites to see what’s out there.
Why do landlords build serviced accommodation?
For a short time, landlords of serviced accommodation focus mainly on travellers and businesspeople in town.
These people will often pay higher for a better experience. This especially applies if their company is funding their trip.
Some people let properties for weeks at a time. This reduces the level of churn. You can also pack many people into a residential building using serviced accommodation.
Rooms tend to be smaller than a hotel.
You have lower tenant risk because if someone is problematic, they often move on soon. Platforms like Airbnb have also enabled landlords to maximise visibility in their vacant rooms.
There are lots of drawbacks to building serviced accommodation, too. The amenableness of the local council is a prime example.
You should research all of these and speak to an expert if you’re considering this route.
Can you buy a flat in serviced accommodation?
Yes, it is possible to buy a flat in serviced accommodation. But this is usually only possible if all other properties in the block are available for sale, too.
Most landlords get a commercial mortgage when building these premises. They’ll also have to sign contracts explaining what they’ll use it for. Legal agreements may prevent changing its purpose mid-way through.
If the building is constructed with the attention of selling each unit, you can buy one of them.
For example, in London, ‘Greenford Quay’ is a major development that is a typical example of this.
Contact a serviced accommodation landlord if you are keen to explore this route. Ask what is available and how you can buy a serviced flat.
There are other ways to live in a serviced apartment.
Retirement villages are a perfect example. Remember that any serviced property will cost more than a non-serviced equivalent.
Advantages of staying in serviced accommodation
Serviced accommodation focuses on convenience. You will have access to a concierge 24 hours a day.
This can be helpful if you need something but do not want to leave your room.
You often find a better sense of community in serviced accommodation. Some residents will be staying for several weeks.
You could make friends with your neighbours and socialise in communal spaces.
The amenities can be extremely useful, too. Fast broadband is valuable when working digitally.
A garden area often provides a peaceful space in a busy city that you wouldn’t otherwise have.
Your location will often be excellent in serviced accommodation. If you want to explore a big city, it can be ideal.
You also have the flexibility of coming and going as you please.
Disadvantages of staying in serviced accommodation
Lots of people argue that serviced accommodation lacks charm. The aesthetics might be the same in every room.
If you’re looking for a ‘lived in’ property with a long history, you’re unlikely to find it here.
Your room may also not be very large. This is because the developer often tries to fit as many rooms as possible into a small area. Plenty of them are studios.
They may also require you to use a communal kitchen rather than having your own appliances.
Maintenance issues can be devastating if you rely on them during your stay. Broadband can go down at a moment’s notice and disrupt your work.
You will then rely on asking someone else to fix it – you cannot take matters into your own hands.
Should I stay in serviced accommodation?
Serviced accommodation is an excellent option if you’re staying in a city for a short period. It offers convenience and a central location.
You should do in-depth research to confirm what the property is like. Check reviews from past customers and see how long the accommodation has been operating.
Otherwise, your experience might be ‘hit or miss’.
You may want to look elsewhere if you’re keen to experience the local charm, history and culture. Local architecture from hundreds of years ago is unlikely to be in serviced accommodation.
Work out your budget and research prices of different accommodations. This might narrow down your options.
The location of the building is also important. Use all these factors to make a well-informed choice.