The Benefits of Serviced Accommodation for Landlords and Property Owners

Serviced accommodation is a lucrative business model that offers numerous advantages for property owners. Whether you’re a seasoned landlord or a budding property investor, here’s why you should consider serviced accommodation.

Higher Rental Yields

Serviced accommodation can generate higher rental yields than traditional lettings. This is due to the premium prices that can be charged for short-term rentals, which are often more than the monthly rent for long-term leases.


Serviced accommodation provides greater flexibility for property owners. You have the freedom to use the property when it’s not rented out, making it perfect if you want a mix of personal use and income generation.

Regular Maintenance

With serviced accommodation, properties are regularly cleaned and maintained, reducing the risk of wear and tear going unnoticed. This regular maintenance helps to preserve the property’s value over time.

Better Cash Flow

Since serviced accommodation typically operates on short-term rentals, the cash flow is often better than long-term rentals. You’ll receive payments more frequently, helping to improve your cash flow management.

Lower Tenant Risk

With traditional rentals, you can be stuck with problematic tenants for months or even years. With serviced accommodation, the risk is reduced as guests stay for shorter periods, and you have more control over who stays in your property.

Tax Benefits

In the UK, serviced accommodation is classified as a furnished holiday let (FHL) for tax purposes. This status offers several tax advantages, including allowances for furniture and the ability to offset mortgage interest against profits.

Increased Property Value

A successful serviced accommodation business can add value to your property. The higher earning potential can be an attractive feature for potential buyers, should you decide to sell the property in the future.

Market Resilience

Serviced accommodation can be more resilient to market fluctuations. Even in a challenging market, there’s always a demand for short-term accommodation from tourists, business travellers, and those in between long-term rentals.

Enhanced Guest Experience

Serviced accommodations allow landlords to offer a higher quality of service and experience to their guests. With fully furnished and equipped properties, your guests can enjoy a comfortable and homely environment with all the amenities and conveniences of a hotel. This enhanced guest experience can lead to positive reviews, repeat bookings, and a strong reputation in the market.

Potential for Professional Management

Managing a serviced accommodation can be done remotely or delegated to professional management companies. These companies can handle everything from bookings to cleaning, making it easier for you to manage your property. This can be particularly beneficial if you have multiple properties or if you live far from your rental property.

Diversified Customer Base

Unlike traditional rentals that often depend on local demand, serviced accommodations attract a broad range of guests. This includes tourists, business travellers, locals in need of temporary housing, and even families on vacation. This diversified customer base can make your rental income more stable and less vulnerable to local economic fluctuations.

Network Expansion Opportunities

As you welcome guests from different walks of life and various parts of the world, you also get a chance to expand your network. This can open up opportunities for more business, partnerships, and even friendships.

Serviced accommodation presents an attractive opportunity for landlords and property owners to maximise their rental income, maintain the condition of their properties, and benefit from certain tax advantages. It’s a flexible and profitable approach to property rental that is worth considering in the ever-changing rental market landscape.

Winter doesn’t have to mean downtime for your business. Join our next webinar this coming 25th of October at 5PM and transform your off-season into a thriving ON season.

Don’t let this valuable opportunity slip away! Space is limited, and seats are filling up fast. Secure your spot now by clicking this link; Let’s make this winter your most profitable season yet!