SPECIAL: How does Serviced Accommodation differ from BTL?

Two popular tactics in Property Investment are Buy-to-Let (BTL) and Serviced Accommodation (SA), each offering different advantages and challenges.

Buy-to-Let (BTL): This traditional model involves purchasing a property to rent out on a long-term basis, typically with tenants on six-month or yearly contracts. BTL offers consistent rental income, stability and fewer management demands. Profitability depends on long-term rental yield and capital growth.

ATTENTION LANDLORDS: Tired of tenancy uncertainty or the constant onslaught of regulation and risk? Wouldn’t you rather have trouble-free renting for 1-5 years at a time without any gaps in rent? Find out more about our soon to be unveiled service here.

Serviced Accommodation (SA): SA on the other hand, refers to short-term rentals like holiday lets or corporate stays—often offering higher nightly rates than BTL properties. Investors benefit from flexible bookings, maximising occupancy during peak times. However, SA can require more hands-on management, including marketing, cleaning and guest communication – or the use of management companies which increases operating costs. It also faces seasonal demand fluctuations and stricter local regulations in some areas, such as limits on short-term lets.

UTILITY OF THE WEEK. Lease Extensions. This handy page has good, independent advice and tools for if you are considering extending your own lease, or considering the costs of doing so for an investment property.

Implications for Investors: BTL is a more stable, lower-risk option for those seeking predictable income and minimal management. It’s ideal in areas with high tenant demand but might offer lower returns. SA offers the potential for higher income, especially in tourist or business hotspots, but demands greater involvement and risk, especially when occupancy dips. Investors must assess local demand, regulations and their capacity for active management in order to choose between these strategies.

Who are M2P? Married2Property are a family-run property company that aims to build social good through property.

Choosing between BTL and SA depends on risk appetite, location, and desired level of involvement – making it essential to consider market conditions and investment goals. It always starts with knowing what you are aiming for, and what you have to achieve that – be it funds or specialist knowledge.

How you can Support: If you know anyone who may be interested in receiving these newsletters, please forward this content to them. They will be able to subscribe below:

We also post on Social Media daily, FOLLOW US on Facebook.

Song of the Week: 🎶 Don’t You (Forget About Me) – Simple Minds 🎸

And Finally… In the ever unpopular series of Property Christmas Cracker Jokes… What’s a property investor’s favourite type of music? House…

What do M2P do? Married2Property aims to create social good through by property – by housing more vulnerable groups of people – giving them a stable platform from which to try and improve their lot in life. We also offer Landlords competitive and hassle-free solutions for their property problems.