For many London landlords, the traditional long-term rental model has always been the obvious choice.
You find a tenant, agree a tenancy, collect rent and manage the property over an extended period.
But the property market has evolved, and serviced accommodation has become an alternative strategy for owners looking to approach their property differently.
So, which model is better?
The answer depends on your property, location, objectives and appetite for management. However, for suitable properties in the right London locations, serviced accommodation can provide greater flexibility and a different approach to generating property income.
What Is Serviced Accommodation?
Serviced accommodation is a professionally managed short-term rental model where properties are offered to guests for shorter stays rather than being occupied by one long-term tenant.
The property operates more like a professionally managed residence, with services such as:
- Professional housekeeping
- Guest communication
- Flexible check-in
- Linen and laundry
- Property maintenance
- Listing management
- Revenue and pricing management
The supplied material describes this model as a way for landlords to have their properties managed as serviced apartments while focusing on increasing cash flow and reducing their own involvement.
Traditional Long-Term Letting
With a conventional long-term tenancy, landlords generally have a longer-term tenant occupying the property.
The main attraction is simplicity.
Once a tenant is in place, the property may require less frequent operational management than a short-let property.
However, landlords can have less flexibility over when they can access or use the property.
The Income Potential
One of the biggest reasons landlords investigate serviced accommodation is income potential.
The supplied material specifically highlights increased cash flow as one of the principal reasons property owners consider the serviced accommodation model.
However, higher potential revenue should never be confused with guaranteed revenue.
Performance depends on factors including:
- Location
- Property type
- Seasonality
- Demand
- Presentation
- Pricing
- Occupancy
- Operating costs
- Management quality
This is why a proper property assessment should come before deciding which strategy is appropriate.
More Work Doesn’t Have to Mean More Work for You
One concern landlords often have is that serviced accommodation sounds considerably more complicated.
And it can be — if you manage everything yourself.
Guest messages, cleaning, maintenance, check-ins, pricing, bookings and multiple platforms can quickly become a full-time responsibility.
Professional management changes that equation.
A full-service management model can take responsibility for marketing, bookings, cleaning, guest communication and property maintenance.
Which Strategy Is Right for You?
There isn’t one answer for every London property.
A serviced accommodation strategy may be worth considering if your property is in a strong location, has the right characteristics and has sufficient demand.
The best first step is to assess the property rather than simply choosing a model based on headline rental figures.
The Orchard Vault
At The Orchard Vault, we assess London properties individually and create a strategy based on the property, location and owner’s objectives.
Want to understand what your London property could achieve?
Book a Free Property Review.