Serviced accommodation can generate significantly higher income than traditional buy-to-let. Here's everything you need to know to get started or have it managed professionally.
Serviced accommodation has emerged as one of the most profitable property strategies available to UK landlords, driven by the global growth of platforms like Airbnb and Booking.com and increasing demand from corporate travellers seeking alternatives to hotels. This guide explains what serviced accommodation is, how it works, and how to determine whether it's right for your property.
What is serviced accommodation?
Serviced accommodation is furnished, self-contained accommodation let on a short-term basis — typically from one night to several months. Unlike a traditional tenancy, each booking is separate, and accommodation is presented to hotel-like standards including fresh linen, kitchen provisions and regular cleaning.
Serviced accommodation operates outside the standard tenancy framework of the Housing Act 1988, making different legal rules apply. Short-term guests are "licensees" rather than tenants, with fewer legal protections — which is an advantage for landlords but requires a fundamentally different management approach.
Revenue potential
The income potential of serviced accommodation varies enormously based on location, property quality and market demand. A one-bedroom flat in a commuter town with good transport links might achieve £60-£80 per night on Airbnb, potentially £1,500-£2,000 per month at 70% occupancy — compared to perhaps £900-£1,100 on a long-term let.
Corporate accommodation (let on monthly basis to contractors, locum healthcare workers, etc.) typically generates £1,500-£2,500 per month for a two-bedroom property, with lower platform fees and more stable occupancy than nightly leisure lets.
What makes a good serviced accommodation property?
Successful serviced accommodation properties typically have: fast and reliable broadband, a well-equipped kitchen, comfortable beds with quality linens, a smart TV, private parking or easy local parking, proximity to transport links, and a location with demand from business or leisure travellers.
Legal and planning considerations
In London, short-term lets are restricted to 90 days per year without planning permission under the Deregulation Act 2015. Outside London, the rules are less clear but are evolving as more councils seek to regulate short-term accommodation. Always check with your local authority before committing to a short-term let strategy.
Mortgage lenders may restrict short-term lets on buy-to-let properties — check your mortgage terms or speak to a specialist broker.
The management challenge
Serviced accommodation requires intensive management: guest communication must typically be responded to within an hour, check-ins must be coordinated (often with key safes or smart locks), the property must be professionally cleaned and restocked after each stay, and maintenance issues addressed immediately to protect your review score.
Our serviced accommodation management service handles every aspect of this on your behalf. Contact us to discuss whether your property is well-suited to the serviced accommodation strategy.