Serviced Accommodation, or serviced accommodation properties, is one of those terms that you tend to hear quite often. However, more often than not, people do not really understand what is meant by the term serviced accommodation property. They tend to be confused because they simply do not have a proper definition. According to Property Investments UK, serviced accommodation refers to fully furnished properties which are available for short or long-term let. Investing in such properties can seem like a good idea, but there are risks. Let us, therefore, briefly have a look at some of those risks.
One risk when it comes to buying a serviced accommodation property is that it requires a lot of effort. For people with a full-time job, it would be almost impossible to go through the proper procedures which are required in order to purchase such a property. Moreover, it quite often requires a team of people rather than a single individual.
Furthermore, when investors rent such properties, it seems that their returns aren’t quite what they expected them to be. Thus, we see that the return profit may not be quite worth the hassle of purchasing such a property. The reality for most serviced accommodation owners is that their property loses value overtime, so the hassle becomes even more apparent (and the risks are even greater).
These are just a few of the risks associated with purchasing serviced accommodation properties. They should always be considered before purchasing such a property, because you want to minimise your chances of losing out. Nonetheless, people do purchase said properties, and end up doing quite well. In order to succeed, you must simply plan well, research well, and execute well.