On the surface, a serviced accommodation seems to be a smooth-running business, seemingly bringing a solution to an array of issues thrown at them starting from the guests to the investor to the developers.
But rising to the level of constant preparedness comes from years of experience from trial and error.
So, if you are a first-time investor in the service accommodation business, we are here to give you some pre-requisite knowledge that we have accumulated over the years as successful businesspeople in the area of service accommodation.
TOP 3 Hacks which you can use to find your dream location for serviced accommodation business
Know your clientele
To run a successful serviced accommodation business, the first step is to have an in-depth understanding of the target audience of your service.
Serviced accommodations usually have two to three types of clients. Short-term Vacationer, Short-term Business traveller, Long-term Business traveller.
Now, all three of them have a basic set of needs like space, comfort, amenities like Wi-Fi, transportation services, restaurants, supermarkets, etc., but you might have to cover the difference depending on their specific requirements.
For example, a business traveller might need a work desk, an extra bed if there is more than one person in the apartment, etc.
You will have to decide whether you are going to be running a service leaning more towards serving the leisurely or the working. This is not always an either/or decision.
There are plenty of serviced apartments that serve both types of clients but location plays a major role in it.
Know your location
Based on the clientele, you need to do extensive research about the location that will best suit the client’s needs.
For instance, if you are planning to run a Serviced accommodation for people travelling for work, you need to invest in properties in cities that see a lot of corporate travellers, like Manchester, Birmingham.
Otherwise, investing in cities that are holiday spots will lead to seasonal occupancies, laying untouched for the rest of the year.
If you wish to run a seasonal holiday letting, you should research popular holiday destinations and try to provide what is majorly lacking in the market in a cost-efficient way and you will see more activity during those times.
Know your property
After finalizing these two factors, the next step is to find suitable properties that fit these requirements.
It is always advisable to look for properties in the heart of the city, that are close to good restaurants, supermarkets, popular tourist spots and, have an easy commute.
Of course, some clients will prefer a remote location away from the city. But the majority of customers feel unsafe if their stay is inaccessible to local stores, police station, hospital, etc.
Space is always a welcome characteristic of any apartment.
Hence, people usually prefer living in a one-bedroom apartment like Azure Cubic that has enough room for a dining area and a fully equipped kitchen or a two-bedroom with the same facilities, in case they are expecting more people visiting them.
Studio apartments are usually not found to be convenient among the customers as they wish to sleep in a room that is separate from their living and kitchen areas.
These kinds of properties are also quite easy to scout and to get permissions for.
We have found that things get a little complicated starting from three-bedroom apartments, involving more paperwork, leg work, legal work, etc.
You can alternatively, squeeze in an extra bed in the living room essentially making it a three-bed apartment within the space of a two-bedroom, cutting down several bureaucratic issues.
The most enticing part about a serviced accommodation is the service aspect of it.
It goes without saying that SAs provide significantly more services than any hotels in the same price range.
For instance, concierge, housekeeping, parking space, free Wi-Fi, a fully equipped kitchen that is ready for use, a smart TV and in some cases a communal space for residents with game rooms, gyms, pools, etc.
Find what best suits your business model and invest prudently.