Serviced accommodation – sometimes known as holiday lets – is a type of short-term rental property aimed at people who need somewhere to stay when visiting another area.
Like other types of buy-to-let investment, serviced accommodation involves purchasing a property and renting it out for income.
But how long is a short-term let? According to HomeLet, a short-term let is a contract that is less than six months.
Investors should take care of what city they choose to invest in – some areas restrict how often you can rent out serviced accommodation. For example, serviced accommodation in London can only be rented out for 90 days out of the year. However, somewhere like Liverpool places no restrictions on how often you can rent out a serviced property.
These properties are usually listed on sites like Airbnb. As such, investors may need to pay commission fees when renting a serviced accommodation. In addition, you are more likely to endure void periods, especially when investing in an area with seasonal demand. Therefore, you need to consider an area popular with tourists all year round.
On the upside, serviced accommodation allows investors to make a lucrative rental income and also comes with favourable tax benefits.
For more information on buy-to-let investment properties in 2024, check out our regional buy-to-let guides. These include:
