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  • Sigma Investment Group

What are the benefits of purchasing a Serviced Accommodation?

What are the benefits of purchasing a Serviced Accommodation?

As you may or may not know, our specialist area as a Sourcing Agent is Serviced Accommodation. In a world of rising interest rates, and a cost-of-living crisis, many landlords are switching their Buy to Lets and HMO’s to Serviced Accommodation’s…. but why purchase a property and convert to a Serviced Accommodation?

Higher Rental Income

One of the primary benefits is the potential for higher rental income compared to traditional long-term rentals. Serviced accommodations (SA’s) are let out on a nightly rate as opposed to a traditional monthly rental charge. Our main clients across our portfolio of SA’s are contractors… but we also receive bookings from doctors, business professionals, relocators and those visiting for leisure purposes. Contractors usually come in groups of 4-6 and stay between Monday-Friday. They can often obtain a discount per person in an SA, in comparison to staying at hotels. Additionally, using Serviced Accommodation’s allow guests to self-cater, conduct meetings and socialise in a better environment. Serviced Accommodations are also typically professionally cleaned, stocked with amenities & hotel grade laundry and can yield fantastic discounts for longer stays. All these combined create a win-win for guests and landlords, warranting a premium nightly rate, and therefore delivering a higher net yield.

Flexibility and Availability

Serviced accommodations provide flexibility for property owners. Landlords can choose when to make the property available for bookings, giving them the option to use it personally as and when required. This flexibility can be particularly advantageous if you have a second home or if you frequently travel.

Eviction Rights

Long-term tenants’ benefit from stronger eviction protections under the UK's housing laws as opposed to SA guests. To evict a long-term tenant, landlords must follow specific legal procedures and provide valid reasons for eviction, such as non-payment of rent or breach of tenancy agreement. In contrast, as an SA host, you generally have the right to terminate a guest's stay and ask them to leave the premises at the end of their agreed-upon stay or in certain circumstances during their stay. Subject to the terms agreed in your terms and conditions. In these situations, it pays to have a stringent set of T’s and C’s in place and agreed by both you, and your guest, or have a management agent who does so on your behalf.

Enhanced Property Management and Maintenance

Many serviced accommodation providers offer property management services, handling tasks such as guest communication, check-in/check-out procedures, housekeeping, damage reports and maintenance. SA management is a much more intense style of management compared with Buy to Let/HMO management, and usually means that the property is inspected on a weekly basis as opposed to 3-6 monthly. Inspecting the property on a weekly basis can mean that issues which may arise and get gradually worse (e.g., damp) can be identified and mitigated at an earlier stage. The property would also be being professionally cleaned on a weekly basis, which ensures that carpets, furnishings, and external areas last longer, as opposed to being used by longer term tenants.

Shorter Tenancy Commitments

Unlike traditional long-term rentals, serviced accommodations generally have shorter tenancy commitments. This allows property owners to have more control over their property and make adjustments as and when required. If tradespeople, surveyors, valuers, or potential buyers need access to a property on a regular basis, long term tenants can make it difficult. Operating your property as an SA gives you the ability to create blocks on the calendar and allow access to an empty house.

Reduced Rental Arrears

Serviced Accommodation bookings are typically paid in advance of the stay by the guest, especially if bookings are received via Online Travel Agencies (OTA’s) such as Airbnb or This protects the landlord against arrears which can often be suffered by landlords with long term tenants.

Tax Benefits

In some cases, renting out a property as a serviced accommodation can provide tax advantage. Advantages can relate to capital gains tax, capital allowances, furnished holiday let taxation, deductible expenses, Inheritance tax relief and mortgage interest relief. For further clarification on this, we would recommend you consult a qualified tax professional.

Looking for a reliable and experienced Serviced Accommodation management agent? Get in touch with us at, call 01270 385043 or head to



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