The serviced accommodation strategy involves leasing or owning furnished properties for short-term stays – typically catering to tourists or business travellers. This approach maximises rental income through nightly rates and provides flexibility in property use. Effective management and high-quality amenities are essential for success​.

Identify and Purchase. Find a suitable property in a location with high demand for short-term stays, such as tourist areas, business districts, or near transport hubs. Locational convenience is key – and knowing your target market. Are you going for business customers? Contractors for a local hub? Stag Dos? Tourists? What are the going rates?

Furnish and Equip. Furnish the property to a high standard, providing all necessary amenities like Wi-Fi, kitchen appliances, and linens to meet the expectations of short-term guests. Ideally, make your fittings and decorations eye-catching, trendy, varied and unique. It’s better to have a range of styles of room / building as not everything will resonate with everyone. Have a look at your competition.

Marketing and Management. List the property on platforms like Airbnb and Booking.com. Manage bookings, guest communications, and property maintenance either personally or through a management company. These days, there are lots of automation tools that make the job of managing, cleaning and maintaining Serviced Accommodation units alot easier.

Pros:

• Higher Income Potential. Short-term rentals can generate significantly higher income compared to long-term rentals, especially in peak seasons or high-demand areas​​.
• Flexibility. Owners can block out dates for personal use or to perform maintenance and upgrades between bookings. You will also not have to worry about evictions.
• Market Reach. Online booking platforms provide global visibility, attracting a diverse range of guests and maximising occupancy rates​​.

Cons:

• Management Intensity. Requires active management or hiring a property manager to handle bookings, guest issues and maintenance.
• Regulatory Risks. Short-term rentals are subject to local regulations and restrictions, which can affect legality and profitability.
• Market Fluctuations. Income can be unpredictable due to seasonal demand and market competition – this will depend largely on your target market(s) and the quality of your product. There was a big spike in demand for Serviced Accommodation shortly after COVID started for example in the UK, but that demand diminished in places – as international travel returned.

The serviced accommodation strategy can be highly profitable with the right property and management approach. However, it requires diligent oversight and a thorough understanding of local market conditions and regulations.