How Can You Make Money With Short-Term Rent?
A serviced apartment is a housing flat that provides services and amenities to guests staying for long or short periods of time. They are completely equipped with all of the necessities of a house, including a bed, television, kitchen utensils, refrigerator, and air conditioning. Apart from that, other services such as housekeeping on demand, Wi-Fi connection, and other additional amenities provided in the society/complex offer short stay apartments a posh feel.
Rooms of short stay apartments are often 30% larger than hotels and have extra amenities like sofas, dining tables, and even coffee makers.
What Makes Serviced Apartments A Good Investment?
Let’s start with a glance at the market data. According to the temporary housing worldwide:
1. In terms of finance and capacity, the temporary housing industry has grown by 24% in the last two years.
2. In 2020-21, visitors could choose from 12,54,743 short term rent in 15,464 locations.
3. The top 15 brands, which include Sheraton, Hotels and resorts, IHG, and Hilton, have 6,85,303 short stay apartments spread across 7,817 locations.
These numbers demonstrate that the extended visit sector is exploding. Furthermore, the present work-from-home environment has allowed temporary housing buildings to re-market their properties with a fresh perspective.
Points To Be Remember:
1. When staying for several weeks, a serviced accommodation is generally less expensive than a hotel.
2. Corporate housing will have someone visit to clean the unit every now and again, but it will not be as intrusive as a hotel.
3. A hotel room has a bed, a desk, and a bathroom. The monthly apartment rentals could be comparable to a high-end hotel room, albeit it usually includes more facilities.
Fun Fact: An extended stay hotel in a three – star hotel costs about 87€ per night on average. Simultaneously, the monthly apartment rentals with the same requirements, high-quality interior, and extra facilities can be reserved for an entire month for 900€ (plus additional charges).
Serviced Apartment Development And Investment Prospects (2018 – 2022)
It’s a corporate housing development and investment prospects over the last 5 years (2018–2022), according to this pie chart. We can observe that the percentage has decreased as a result of the Covid-19 Pandemic, but that it has dramatically increased after 2022.
Costs Of Temporary Housing In Bangladesh
|Category||Rent Per Night||Rent Per Month|
|Standard Deluxe Apartments||$50 – $100||$800 – $1000|
|3- Star Apartments||$150 – $250||$1200 – $1500|
|5- Star Apartments||$350 – $500||$2200 – $2500|
What Makes A Serviced Accommodation Unique?
1. Make proper use of space: It is critical to have a grasp of the concept of space. Apartments, 1 BHK, and 2 BHK apartments are the most common options for extended stays. This room will influence how many guests your flat can handle and how you should furnish it.
2. Invest in essential facilities: The fact that serviced flats must be properly furnished is self-evident. But that doesn’t mean you have to fill every inch of available space with all of the conveniences and furniture on the market. Allow me to offer you a better understanding of the situation.
3. Short term rents are economical: When compared to a four-day overnight stay in a hotel, the savings potential is greater than 40%. Consider how long these business travels are for business setup. Approximately 27% of global business travelers and 70% of business travelers spent over 31 days away from home each year.
Property Investment In Serviced Apartments
Corporate housing is a popular option for property owners, especially in sought-after city center sites, due to their increased demand. There are a lot of smaller rental sectors (PRS) and purchase to let (BTL) products around the world right now, but the corporate housing category is less crowded, which presents a unique potential for investors. This sort of lodging is preferred for longer visits, and it is typically better to set a maximum number of nights. This reduces the risk of poor occupancy compared to hotels, and investors can earn handsomely from good yield and occupancy rates.
Did you know? In 2017, monthly apartment rentals in the world had an occupancy rate of 82.8%. Short term rent business in Bangladesh, has a 76% occupancy rate in October 2018.
The Future Of Independent Living Is Serviced Apartments
Only a few areas of the world economy escaped the impacts of the COVID-19 epidemic. The travel and hotel business, for example, has been severely impacted by mobility constraints. However, one segment of the hospitality industry appeared to be holding up: serviced accommodation. The monthly apartment rentals industry differs from the hotel industry in that it can cater to specific needs.
Furthermore, the versatility of short term rent appeals not only to guests, but also to investors. Earnings with the hotel company, set minimum rental deals, hardship property administration, and free stays year-round are all available to serviced accommodation owners.
What Will Be Your Next Investment?
One of the most profitable divisions of the hospitality industry is short stay apartments. In reality, it’s a terrific method for developers and owner occupants to make more money from their empty units. This site is for you if you’re one of them. All you can do now is follow the steps I’ve outlined and wait to see the results. For more inquiries, please visit this site.