Investing in serviced accommodation has become an extremely popular route to go down in recent years. The rental yields alone make investing in serviced accommodation a great choice, with most investors seeing an average return of 6.5-9% per annum and some even more.
However, while many investors are benefiting from serviced accommodation, less are using it to its maximum potential. Serviced accommodation is often targeted only for the tourism market but much of its value comes in the ability to target corporate clients.
These clients can not only provide a huge amount of income, but they can do so all year round, allowing you to maximise your rental yield.
Unfortunately, you can’t just pick any property from a random area and expect to make a decent profit. Clients looking for serviced corporate accommodation need to know you and your property can meet their exact criteria.
So, if you want to invest in serviced apartments, you’ll need to make sure your property is suitable. With that in mind, we’ve listed the key ways for you to attract corporate clients to your serviced accommodation.
When it comes to investing in serviced accommodation, the most crucial aspect is finding the ideal type of property in a prime location. This means a four-bedroom house in the middle of the suburbs isn’t going to appeal to anyone visiting the area on a business trip.
To attract clients, you need to have a property fit for purpose. A one or two-bedroom apartment in the middle of a bustling city centre is perfect for serviced corporate accommodation, as clients will only be using your flat as a homely base while they are there to conduct business.
Of course, some cities will also see a higher demand for good serviced apartments. In the North West, we’ve found Liverpool and Manchester to be great areas to invest in, thanks to their ties to UK businesses and buzzing social scenes (well, everyone needs to let their hair down after a hard day’s work).
The more popular serviced accommodation becomes for property investors, the harder it is going to be to find clients as they will soon be spoilt for choice. The best way to counteract this is by having a thorough and accurate advert on popular property portals.
When advertising your property, make sure to list the following details:
When you are writing up the advert, you need to make the effort to really big up your property’s plus points. The better you can describe your serviced accommodation, the better chance you have in standing out in a crowded market.
To highlight the best aspects of your serviced accommodation even further, you’ll need to include several high-quality photos. We’ve put together some tips to help you here:
You’d be surprised at how many investors fail to list their properties properly. But, if you get yourself into the habit of being thorough and accurate, more clients will be inclined to enquire about your serviced accommodation.
Being able to list all the good points of your serviced apartment is one thing, but remember, your clients will only be using it as a place to relax and unwind after traversing the city. To really impress people sending you enquiries, you’ll need to be able to prove you can point them to key locations.
While you should list nearby restaurants and transport links in your advert — as we’ve already mentioned — you can take things that little bit further and find out some prices for popular bars and clubs or find a train timetable to show your prospective client. The more knowledge you can impart, the better.
You should also take some time to look at what other properties in your vicinity are charging for short stays while you’re familiarising yourself with the local area.
Most notably, find out what hotel rooms in the area are charging. These are your competition, but you should be able to comfortably offer a lower rate and attract a steady stream of clients to your serviced corporate accommodation.
With flights and railway services running around the clock, your clients could show up at your property at 11 in the morning or they could turn up at 11 at night. Therefore, you need to be available to meet and greet your guests at all possible hours.
You’ll also need to be able to solve any issues that could arise, such as a faulty TV or a leaky tap. Again, these problems could come at any time, and given how important it is to impress your clients, it’s essential to fix the issues quickly so their visit isn’t badly affected.
It’s important to remember that clients will be leaving feedback on you and your property and that it will be visible on property portals and review websites. So, friendly and timely responses will be critical in landing recommendations that could lead to more enquiries and even repeat clients.
If you don’t think you will be available for meet and greets or resolving problems on a regular basis, you could always hire a serviced apartment management company to take care of your property for you.
Serviced apartments are meant to be more than just a place to dump your bags and have a quick wash; they’re meant to have a luxurious, homely feel to them as a way of enhancing the experience of the visit. Therefore, you’ll need to provide home comforts for your guests to enjoy.
If it helps, think of everything you would want in your house. That’ll include comfy furniture, a big bed, a wide-screen TV and even cooking equipment. In essence, your property should feel like a guest’s home away from home.
Don’t forget that your clients will mainly be in the city for business reasons, so set up a workspace that will provide them with enough room to spread out files and documents in front of them whilst they are on their laptop. If you want to go one step further, buy a printer and allow your clients to have full use of it.
When it comes to attracting corporate guests, remember that the client is not just a person in your apartment, but the company that booked with you in the first place.
That means that impressing your guests can result in a stream of future corporate bookings from their company. Therefore, you need to pull out all the stops to make sure your guests go back to work with great feedback.
To do this, think about what bonuses you can provide your guests that will make you stand out. It could be a free pack of toiletries for anyone who forgets their toothpaste to making sure there are some cold beers in the fridge for when they arrive.
Whatever you choose, just remember that providing a great level of service can ensure regular corporate guests to your apartment, so take the time to go the extra mile.
Finding a great property in a promising location is the most crucial component of attracting clients to your serviced corporate accommodation, but it’s not easy to tell which property will be a good investment if you’re not sure yourself.
At Taylor Rhodes, we know a thing or two about investing in the right area, as proven by developments in Liverpool and Manchester. So, if serviced accommodation is appealing to you, get in touch with a member of our team to find a prime location that’ll attract clients on a regular basis.
If you’re still not sure whether serviced accommodation is right for your portfolio, learn more about investing in serviced accommodation by downloading our free eBook.