If you’re a landlord or property owner, you may have wondered whether your property could generate more income as serviced accommodation rather than through a traditional long-term tenancy.
It’s a question we’re asked regularly at N And N Stays, and the answer isn’t simply yes or no.
A well run serviced accommodation property can generate strong returns, but location, demand, pricing and management all make a huge difference.
We manage serviced accommodation across the South West and South Wales, including Bristol, Bath, Swindon, Cardiff, Newport and Swansea, so we’ve seen first hand how differently properties and locations can perform.
Here’s what property owners should consider:
What is serviced accommodation?
Serviced accommodation is furnished accommodation rented to guests for shorter periods rather than using a traditional long-term tenancy.
Guests can include:
* Contractors working locally
* Business travellers
* Families relocating or moving home
* People visiting friends and relatives
* Tourists and weekend visitors
* Guests requiring accommodation for several weeks or months
Properties can be marketed through platforms such as Airbnb and Booking.com, alongside direct bookings.
The aim isn’t simply to fill every available night. A successful property needs the right balance between occupancy, nightly rate and operating costs.
Can serviced accommodation make more money than traditional renting?
Potentially, yes.
A property that achieves a fixed monthly rent through a traditional tenancy can sometimes generate considerably higher gross revenue when operated successfully as serviced accommodation.
However, gross revenue isn’t the same as profit.
Owners need to consider utilities, cleaning, maintenance, booking platform commissions, management costs and periods when the property may not be occupied.
That’s why we believe every property should be assessed individually rather than relying on headline figures or generic online revenue calculators.
Location, property size, parking, local employers, contractor demand, tourism and competition can all affect performance.
It’s not just about Airbnb
One of the biggest misconceptions about serviced accommodation is that it simply means putting a property on Airbnb and waiting for bookings.
Airbnb can be an important booking channel, but it shouldn’t necessarily be the whole strategy.
At N And N Stays, we use multiple booking channels alongside our own direct-booking website and relationships with contractor and corporate guests.
Longer contractor and corporate stays can be particularly valuable because they can provide more consistent occupancy while reducing the number of changeovers required.
A strong booking strategy is about finding the right guests at the right price, rather than simply chasing maximum occupancy.
Serviced accommodation isn’t passive
This is something property owners should understand before getting started.
Running successful serviced accommodation involves considerably more than creating an online listing.
There are:
* Guest enquiries and communication
* Pricing and revenue management
* Cleaning and linen
* Maintenance
* Check-ins
* Reviews
* Booking platforms
* Compliance
* Calendar management
* Guest issues
* Cancellations and booking changes
Pricing also needs regular attention.
Demand can change depending on the season, day of the week, local events, booking lead time and what’s happening within the local market.
For owners who want their property investment to be relatively hands-off, managing everything themselves can quickly become another job.
What does a serviced accommodation management company do?
A professional management company can take responsibility for the day-to-day operation of the property while working to maximise its performance.
At N And N Stays, our management service can include:
* Creating and optimising property listings
* Dynamic pricing and revenue management
* Guest communication
* Booking management
* Cleaning coordination
* Maintenance coordination
* Multi-platform distribution
* Direct bookings
* Contractor and corporate bookings
* Ongoing property performance monitoring
This allows owners to benefit from the serviced accommodation model without having to manage every booking, message and operational issue themselves.
Is your property suitable for serviced accommodation?
Not every property should become serviced accommodation.
Before making that decision, there are several things we’d consider.
Location:
Why are people travelling to the area?
Tourism can be important, but so can major employers, construction projects, hospitals, universities and businesses.
Property type:
A one-bedroom apartment attracts a very different guest from a four or five-bedroom house.
Understanding who the likely guest is should influence everything from furnishing to pricing.
Parking:
Parking can be particularly important for contractor, business and family bookings.
Local competition:
It’s important to understand how many comparable properties are already operating nearby and how they’re performing.
Potential nightly rate:
What are guests realistically prepared to pay for a property like yours?
Year-round demand:
A property performing brilliantly during summer doesn’t necessarily mean it will perform equally well throughout winter.
A proper assessment should consider the whole year.
Should you switch from long-term letting?
It depends.
For some owners, serviced accommodation can provide an attractive alternative to a traditional tenancy.
For others, the additional operating costs or local demand may mean that a traditional tenancy remains the better option.
We’d rather have that conversation with an owner before they spend thousands preparing a property.
The important question isn’t:
“Can I put this property on Airbnb?”
It’s:
“Is there enough demand for this particular property to operate successfully as serviced accommodation?”
Those are two very different questions.
Find out what your property could achieve
If you own a property in Bristol, Bath, Swindon, Cardiff, Newport, Swansea or the surrounding areas and you’re considering serviced accommodation, N And N Stays can assess it with you.
We’ll look at the property, its location, likely guest demand and the local market before discussing how we would approach managing it.
Already running an Airbnb or serviced accommodation property?
We can also look at its current performance and identify areas where the pricing, occupancy, listings or booking strategy could potentially be improved.
Want us to assess your property?
Get in touch with N And N Stays for a free, no-obligation property assessment and discover whether serviced accommodation could work for your property.
Call us on 01225 595686
WhatsApp us: 07869 362439
Email: info@nandnstays.co.uk