The difference between serviced and unserviced accommodation

Nikka Sulton

The difference between serviced and unserviced accommodation

Discover the difference between serviced and non-serviced accommodation. The key difference is the amenities and services. While both may share property types, serviced accommodations offer extras like housekeeping, while non-serviced ones often require guests to manage their cleaning and may lack on-site support.

But first things first..

What does serviced accommodation mean?

In essence, serviced accommodation signifies precisely that – landlords offer ‘services’ to guests staying in the lodging, encompassing basic housekeeping to more extensive amenities.

Certain purpose-built serviced apartment complexes boast on-site gyms, restaurants, shops, and 24-hour concierge services.

However, serviced accommodation need not be confined to apartment buildings; it can encompass any residential property rented out with added services, catering to short-term rentals ranging from one night to several months.

What is the difference between serviced and unserviced accommodation?

The key distinction lies in the amenities and services provided to guests. Serviced accommodations offer perks like regular housekeeping. In contrast, non-serviced apartments, while often similar in terms of property type, lack these extra services. Non-serviced apartments typically require guests to handle their own cleaning. Additionally, they may lack on-site security or reception staff, leaving guests responsible for addressing any concerns independently.

Is serviced accommodation different to a holiday rental?

Serviced apartments are versatile, accommodating guests for one night or several months, serving various guest types. On the other hand, holiday rentals are typically residential properties let to holidaymakers for weekends, weeks, or fortnights, or occasionally for the owner’s use, without additional servicing.

How to set up serviced accommodation

When establishing serviced accommodation, ensure the following:

Right Mortgage: Avoid using a buy-to-let or standard mortgage, as it violates the lender’s terms.
Lease Permissions: Check your lease for short-term rental permissions.
Right Insurance: Obtain specialized insurance for comprehensive coverage.
Planning Permission: Consult your local council for serviced accommodation regulations, including rental duration restrictions and change of use requirements.

Furnish the property, set up utilities, including WiFi, and arrange servicing like cleaning and laundry. You can manage these tasks yourself if you’re nearby and available around the clock. Alternatively, hire a professional company for property oversight, guest management, and services, albeit incurring additional costs.

What should serviced accommodation include?

Serviced accommodation offers a homely alternative to hotel rooms, providing a complete living space with all essentials included in the rental cost. Landlords are expected to provide:

A fully equipped kitchen with all necessary cooking facilities, a dishwasher, and a washing machine.
A bathroom.
A furnished living area.
WiFi and a TV.
At least one separate bedroom or a dedicated sleeping area for studio apartments.
All utilities, including water, electricity, and gas if applicable.
Housekeeping service, either weekly or at more frequent intervals.

Are serviced apartments a good investment?

The UK’s rental sector is witnessing significant growth in the serviced apartment segment.

Just like any rental property, be it buy-to-let, holiday rental, or serviced accommodation, location plays a crucial role in maximizing income and preserving or increasing the value of your investment.

Every property investment carries some level of risk, so it’s essential to thoroughly research the area, gauge the demand for serviced accommodation in that region, and assess the property’s potential before making any financial commitments.