A few decades ago, serviced apartments became popular in the corporate world. When important businessmen or women, or guests of a corporation, had to travel and stay in a certain area for a while, the corporation would arrange for a place to stay – an apartment or flat – which housed all the luxury of a home and added services such as housekeeping to provide the business representative with comfortable housing away from home thanks to the help of a rental property management company. That concept has bloomed; the market is open to the general public and more and more travelers enjoy its benefits. More and more investors, as well. But what exactly is a serviced apartment, and how does it differ from other alternatives? Here’s what you can expect with a serviced apartment investment.
Why property is always good
It’s not for everyone, but for those who fit the picture, property is always a good investment. There are two problems with real estate: the fact that it is liquid, and that it is long-term. In other words, you need to be able to hold on to your property for several decades. However, for those who are willing to do so, property gives above-average rates of return for investments, and is considered very safe.
The benefits of the serviced apartment investment
Aside from a serviced apartment investment being an investment in real estate and property, there are some other noteworthy benefits:
They are only recently becoming very popular, and hence the market is suited for investment. Now is the time: the popularity is increasing and the demand still outweighs the supply by far, as attested to by Servicedletsgroup.com.
They require much lower service costs and managerial experience than a hotel.
They provide a solid, regular income if the serviced apartment is at a good location and offers all the required amenities. Marketing with agencies is easy.
The serviced apartments provide the owner with much higher returns than ordinary buy-to-let, often as high as 300%.
Since there are usually short-term stays, it is easier for the commercial property management to keep control of the property and inspect it on a regular basis for maintenance purposes. Laws are also much more flexible.
Here’s why serviced apartments are a great investment in a nutshell – the bottom line: serviced apartments are ideal because they appeal to a large group of tenants. They benefit people on extended business trips, crew or staff of short to medium-term development projects, relocations, and a wide array of families, students, and professionals who enjoy the feel of a home away from home, and the privacy that hotels often lack. The market is growing and the supply has yet to meet the demand. The serviced apartment investment is a great vehicle for personal financial growth.
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