Unlike a one-time buy-to-let accommodation, with the serviced accommodation, you can effectively let a property out for a short period. You let the property out to what we call visitors or guests rather than tenants. Some of the advantages of doing this are the easy access to your property, after only a few days or a week, and the fact that it requires less paperwork (no reference check, no evictions, no inventory, etc)
So, instead of saying a buy-to-let, where you have a 6-month rental agreement or a one-year fixed term, you might basically let out your serviced accommodation for one day or one night, or it might be for a weekend, or you might actually have long-term short-term lettings like for one week or one month.
The type of property which is used for serviced accommodation is the same kind of property you’d be using for a buy-to-let or just a single-let. Nevertheless, when the property is used as a serviced accommodation, it can produce much higher returns. Because the type of charges that we might call rent, which you can pay for a night or a short stay, would be comparably much higher than the amount you will charge for a lease of 6 months or a year.
The current housing market has made renting the property an ever more important part of the way we all live. House prices have massively exceeded, making it hard to get into the property ladder, and renting is almost always the best choice.
Since these renting gives you more flexibility than buying a property, finding any right place and moving in always takes money and time, so it’s good enough to put some thoughtful consideration into finding somewhere which suits you.
Short term vs long term Lets
If you let your property on a long-term lease, you will be responsible for making sure that your tenants arranged their own accounts with utilities and telecommunications providers. Tenants may also be liable to pay their association charge (council tax) and television licenses, and as a landlord you can indeed be held accountable if they do not.
And, if you let a property for less than six months, you will be responsible for the above-mentioned expenses, and you will have to make your payments and add them into the rent that you receive.
Another form of rental that has recently become increasingly common now-a-days is short term lettings. Short term rentals are the ones where the property owner can rent out a fully furnished house for a short-term stay. These types of properties are particularly common among vacation-goers, corporate clients and locals in search of a place to spend a night or one day. They prefer to be started renting out for somewhere from a few days to a couple of months, renting for months is rather rare.
Short term rentals have proven to be a profitable venture, especially with companies such as Airbnb, HomeAway and Booking.com, each offering a large range of residences, offices, apartments and more for your stay.
Why Serviced accommodation?
Short-term lettings have three primary reasons:
1. It is a pretty flexible way for property owners or hosts at any point during the year to earn money from spare rooms and vacant properties.
2. Short-let prices are typically higher than that of conventional long-term lets, with the average host receiving up to 30% more income.
3. When you’re stumble with a dead-beat visitor, the poor case scenario is that they’re in there for a ‘short’ period.
Some Useful Tips for Successful Short-term Serviced Accommodation
- High standards
Have high levels of quality and cleanliness to guarantee reliability and a smooth booking flow.
- Local competition
Don’t be shocked if the market is full to the brim in your local area, be ready for it. Assess daily the competition in your local area to always be competitive.
- Furnishings & Fittings
Short term lets should be fully furnished and well-equipped.
- Marketing Photography:
Photos are the most critical single component of marketing and booking generation so it’s crucial not to overspend on them.
Advantages of choosing Short-Term Lets
Following are some of the benefits of short-term lettings:
You can yourself choose the rental time, and rent your property for as much or as little as you want to choose.
- Earning Potential
Short-term rentals, as we previously described, can be very valuable. Property managers may set prices by demand, time of year, and form of property and so on. Depending on those variables, certain rewarding earnings have immense potential.
- Less wear and tear on a property
As the tenants are regularly moving in and out of the property and the property is not used on a regular basis, which results in less depreciation. Moreover, you can use those time periods in which it is not occupied to perform any necessary service and maintenance tasks and avoid any damage coming out of hand.
- Social Benefits
The ones who move frequently are some of the most fascinating people out there. When you rent your property to a traveler on holiday, you never know what kind of new and interesting friends you might met.
- Tenants don’t need to do reference
In short-term rentals tenants don’t ever needs to provide references to take property for rent. Because short-term rentals are for few days or even one night, so anyone can be a guest.
- No need to deal with deposits or eviction of tenants
As in long-term rentals, there is no need to pay any deposit or eviction to owners in short-term rentals. As the stay is for only one day or one night or few days, so there is no need to provide any deposit.
- The landlord has more access to the property
In short-term rentals, the owner has more access to the property. The owner can check or assess his property as soon as the guest left.
Types of Short Term Serviced Accommodation
Buying to let is a term, also referred to as investing to let, and is a term which refers to buying a property for the purpose of letting a tenant out. Buy-to-let investors purchase a house and make money out of the rent their owner has paid.
- Letting your own home
Renting out your own home temporarily doesn’t require such a major capital investment as buying to let. There are many web sites that gives permit to you for market your property and also take bookings and collect payment via their services and this has made it more attractive for the customers due to stress-free and flexible option with encouraging home owners to invest into short-term letting.
How to Prepare for a Short-Term Serviced Accommodation
A short-term stay is like to stay for one day to some days. But the processing to take the property is same.
To make it a successful, more attractive, venture and earn some extra money hassle-free, you have to consider some dos and don’ts like.
Important for Great Hosts
- Honest advertising
- Active hosting
- Provide guests with information
- Ensure the accommodation is clean before check-in
- Think like a hotel manager
- Plan for an emergency
Nice-to-Haves Every Good Host Should Consider
- An automated check-in system
- Ask for additional feedback
- Go above and beyond the basics
- Offer instructions
Pitfalls Every Host Should Avoid
- Promises you can’t keep
- Arriving unexpectedly
- Ignoring guests
Serviced Accommodation Advertising Platforms
Airbnb aims to offer services that give new opportunities to travel. It promises to provide world-class customer support, to have the best way for people to utilize their additional space and show it to millions of viewers through its group of users.
Want to know about Airbnb?
- A place to stay for every trip
Airbnb provides large number of renting property, whether you are looking for a house, a room, an apartment or an office etc., Airbnb deals in every kind of property.
- One-of-a-kind experiences
Airbnb Experiences are not like your typical tour. Rather you’re on any trip, you’re exploring your own city, or you are staying at your home, you can learn something new anywhere from an expert host.
What makes Airbnb different?
- Free of cost listing
The business model developed by Airbnb is innovative but clear. There is no fee for listing your property on the platform, which allows you to choose exactly what type of facilities you are offering and the days it is convenient to you. The business actually makes money by paying the fees on each rental to both visitors and owners.
- A global travel community
Airbnb is available in 191+ countries, and their Community Standards help promote security for everyone.
- Hosts who truly care
Hosts are all about things from homes to hotels which makes you feel welcome wherever you go.
- 24/7 support
Airbnb is available 24/7 and it provides global support in 11 different languages
- Refund Policy
The Guest Refund Policy covers many travel problems, and they’ll refund or rebook you if any of them come up.
What are the service charges of Airbnb?
To help Airbnb to cover the costs of the services they provide and to run smoothly, they charge a service fee when any booking is confirmed.
Fees for booking a place to stay
Airbnb have two different service fee structures for booking a place to stay:
1. Shared host and guest fee
The shared host and guest fee is the standard fee structure for individual home hosts.
Host service fee
This fee is 3% for most hosts, but may be higher for Airbnb Plus hosts. This fee is calculated from the subtotal of bookings and is automatically deducted from the host pay-out.
Guest service fee
This fee is typically under 14.2% of the booking subtotal (the nightly rate plus cleaning fee and additional guest fee, if applicable, but excluding Airbnb fees and taxes). The fee may vary based on a type of booking and is displayed to guests.
2. Host-only fee
The host-only fee system was established to give more power to hotels and other hospitality companies over the actual price paid by visitors. The host-only rate varies from 14 to 20% and is the fee structure required for hotels and certain other hospitality sector categories.
For more information visit: https://www.airbnb.com/
What do HomeAway rentals offer?
HomeAway is a community of vacation rentals that offers multiple possibilities for guests beyond just a standard hotel. To landowners worldwide, HomeAway has a large network of bookable properties that can be found along beaches, mountainsides, or in towns, and you can find your perfect vacation rental in your dream spot.
HomeAway gives you a long list of available vocational homes in a number of categories including villas, cottages and holiday apartments
What are the service charges of HomeAway?
5% commission will be paid on the rental price, any expenses (such as cleaning expenses or fees for pets), and any extra payments.
3% credit card processing fee charged on the entire value of your traveler’s payment, which include taxes and damage repayable deposits.
“The service fee is actually a fee which is charged to the traveler and shall be measured on a payment plan of 4% to 9% of the rental amount, except the taxes or deposits. The fee applies to the rental cost will never exceed £499.
For more information visit: https://www.homeaway.co.uk/
You can rent an apartment, space, or any house for someone else on 9flats.com, and actually feel more like home when you’re traveling. Or you can rent out your spare room to earn money. 9flats provides homeowners with a simple way to raise their income.
How it is different from others
- More value for money
If you rent from an individual rather than any hotel with big charges, so you can have great offers. Of course, you can eat delicious, cheap and local food within your own kitchen, rather than eating out.
- More privacy and home comforts
If you rent from an individual, you will feel it like a home. You can get the comfort of a home there. As everyone wants their home comfort everywhere they go, they want the kitchen to cook, so 9flats provides individuals who want to let their own houses or rooms.
- Receipt for your stay
On 9flats you can receive a receipt for your stay after each booking. Even on a business trip it is a great way to feel like home.
- More local tips
Nobody knows their town like a local. If you choose 9flats you’ll be renting from a host who knows the neighborhood’s best bars, cafes, and shops: valuable knowledge that can take many years to discover through your own. They could even take you across the area themselves if you’re lucky.
Service charges of 9flats
The guest service fee is around 10% on every booking, but it may vary depending on the days of stay and total cost.
9flats takes a 12-15% commission on the booking total.
From traditional cottages into modern apartments, your perfect stay can be booked on Holiday Lettings. To rent a vacation rental direct from the homeowner is the most perfect alternative of a hotel if you want a good space, flexibility, privacy, and value for money.
How it is different from others
HolidayLettings provides you a free listing, you can advertise your own rental with no additional costs. You have to pay 3% (excl. VAT) on confirmed bookings and you can also manage everything you want through our user-friendly dashboard.
Reach millions of Guests
Millions of people are searching for unique places to stay around the world, they can find yours.
List your home
You can list your own home and your spare rooms. Your ad can go online and can be ready to receive the bookings in few minutes.
Secure and simple
HolidayLettings listing allows the user to take online reservations and pay-outs in a simple and safe way.
Service charges of HolidayLetting
For the commission service HolidayLettingcharge the homeowner 3% of the rental and add 5% to the rental price when charging the guests.
For more information visit: https://www.holidaylettings.co.uk/
Booking.com has evolved from a small Dutch company to one of the largest international travel companies worldwide. The goal of Booking.com is to make it easier for everyone to explore the whole world.
Booking.com links millions of travelers effortlessly to unforgettable experiences, a range of transportation choices, and amazing places to stay, from homes to hotels, and more. This is one of the largest travel marketplaces in the world for existing brands and entrepreneurs of all sizes.
The platform is available in 43 languages and offers more than 28 million listings of reported accommodation, including more than 6.2 million homes, apartments, and other unique places to stay. Anywhere and everywhere you want to go and what so ever you want to do, Booking.com makes things simple and offers 24/7 customer service for you.
What Booking.com Offers
- Incredible Selection
Booking.com gives you great variety of choices, all in one place.
- Low Rates
Booking.com always guarantees you to offer the best available rates. And with our promise to price match, you can assure that you always get a great deal.
- Instant Confirmation
Each reservation will immediately confirmed at Booking.com.
- No Reservation Fees
Booking.com is not charging any booking fees or adding any administrative fees. And in certain situations, you can cancel your reservation at no charge.
- Secure Booking
Through their secure platform, booking.com facilitate hundreds of thousands of transactions every day, and work to the highest standards to ensure their customer’s privacy.
- 24/7 Support
Booking.com’s Customer Experience Team is always available 24/7 to answer the questions and communicate in more than 40 languages.
Service Charges of Booking.com
Free of charge for consumers, only Trip Providers pay!
Services of Booking.com is free of charge for consumers because unlike other platforms they are not charging for trip service or any additional fee to the rates. The actual amount which you have to pay to the trip provider will be indicated in the trip reservation section.
Trip Providers will have to pay a commission to Booking.com after the consummation by consumers.
For Hosts/Trip Providers
Booking.com fees is set at a base rate of 15% on completed bookings, with an option to upgrade to their Preferred Member service.
For more information visit: https://www.booking.com/
Health and Safety Tips for Serviced Accommodation
If you are looking for short term rental, it is tempting to believe that what is good enough for you as a homeowner is good enough for your guests. Serviced accommodation management providers you can easily let your property but you have to take proper measures by yourself for safety and health for guests or visitors whom you serviced. That is not always so, in terms of health and safety.
It’s essential to make sure that:
- Your property should be fully adaptable to all local health and safety regulations.
- Your property should be completely and properly disinfected after any guest leaves.
- You must contact your suppliers (gas or electricity etc.) for a safety inspection. For a list of Electric Certificate Providers check out thins article.
- The fire risk assessment should be carried out on your property, as required by law.
- Strengthen your fire protection measures (such as installing smoke detector and sprinkler systems and supplying fire extinguishers) and keep all of your fire hazards and safety measures under consideration.
With more and more Serviced Accommodation platforms available, renting a property for a holiday or even for a business trip is getting easier day by day. If you have any spare property or even a spare room in your own home, find the best platform and consider renting it out for short-term i.e. one night, one day, or even for a short period, as required. There are many platforms except discussed above on which you can post your property. People are giving their property as a short-term let nowadays because of its earning potential, it gives more earnings as compared to long-term lets.
After reading this guide, if you feel like doing serviced accommodation with your properties is too much of a headache there is always the option to rent your property long term. We can assist you in finding the right Property Manager. If you are more time reach than money rich, you can check out our online property management courses.