The term serviced apartment is popping up more frequently in the world of property investment.
Popular in the USA and Europe, they have made their way to the UK and are starting to make an
impact on the property market. In the UK, there were 1556 serviced apartments commissioned, and
in 2018 there were 1460. This growing sector of the property market could be a wise investment.
What are Serviced Apartments
Often used by travellers, students and people relocating for business, serviced apartments are
becoming more prevalent in city centres. From short-term stays to long-term tenants, they offer a
home away from home concept, with everything included. They have many of the same amenities
found in a hotel, with a private larger living space. Serviced apartments are starting to be considered
as long-term properties too, with city residents looking for a more convenient and modern place to
live. Serviced apartments have been around for longer than you may have thought. From communal
games rooms to on-site gyms, they can offer an alternative approach to modern living. Popular with
business travellers and extended stay visitors, serviced apartments allow a level of independence
and privacy you can expect from an apartment with extra amenities and services.
What makes a Serviced Apartment different?
Serviced apartments are fully furnished, and should have everything you need to move straight in.
They have a fully equipped kitchen, bathroom, living area and sleeping area like a standard
apartment. It should also have access to washing facilities, like a washer/dryer or a laundry room. As
serviced apartments tend to be newer properties they usually include Wi-Fi, TV and other features,
like communal games rooms or a cinema room. With high-end furniture, modern design and
spacious living areas, they are an excellent choice for city living. All utilities including water and
electricity are included in the rent. Many also offer housekeeping service, like in a hotel. Several
serviced apartments have a reception area, which may be staffed 24 hours a day, or a 24-hour
helpline.
Serviced Apartments for Students
Purpose built student accommodation is a growing sector in the UK property market. Rather than a
single room and shared bathrooms, students are expecting more from their housing. Both one
bedroom and studio serviced apartments are increasingly popular with students. The inclusion of
amenities makes it a lot easier to move in. Students from overseas and mature students are even
more likely to choose serviced apartments as it's a step up from standard accommodation and
provides a level of privacy and security that they are looking for.
Investing in Serviced Apartments
Serviced apartments often garner far higher rental rates than comparable standard flats. People
looking for serviced apartments are often looking for higher quality accommodation in convenient
city centre locations. Those factors mean the value of properties that are serviced apartments can
be higher too. They also provide good exit strategies to investors as the high occupancy and demand
for serviced apartments make them easy to sell.
The high-end interiors, fittings and the quality of the finishes mean that these high-quality
apartments should keep their value. Management and maintenance fees may occur in certain
serviced apartments, which is worth factoring into your investment plan. RW Invest has a range of
apartment investment options, including student serviced apartments.
