The rental property market in Cambridge and the wider UK has seen significant changes in recent years. With rising regulations, tax adjustments, and shifting tenant demands, many landlords are exploring alternatives to traditional buy-to-let investments. One increasingly popular option is transitioning to serviced accommodation. Offering higher income potential, flexibility, and reduced long-term tenant risks, serviced accommodation can be a lucrative choice for landlords. Cambridge Stays specialises in helping landlords make this transition seamlessly. Here’s your guide to the benefits of switching from buy-to-let to serviced accommodation.
1. Why Consider Serviced Accommodation Over Buy-to-Let?
Serviced accommodation, typically short-term or holiday lets, provides a flexible alternative to traditional buy-to-let properties. Here are the key reasons landlords are making the switch:
Higher Income Potential: Short-term lets often yield higher nightly rates compared to long-term rentals, allowing landlords to earn more during peak seasons.
Flexibility for Property Use: With serviced accommodation, landlords retain greater control over when and how the property is used. You can block out dates for personal use or for maintenance without affecting long-term contracts.
Reduced Tenant Risks: Unlike buy-to-let tenants, short-term guests typically stay for shorter periods, reducing the risk of tenant disputes or lengthy evictions.
Tax Advantages: Serviced accommodation may qualify as a Furnished Holiday Let (FHL), offering tax benefits such as deductible expenses and allowances for mortgage interest.
Increased Demand: Cities like Cambridge attract tourists, professionals, and students year-round, creating consistent demand for serviced accommodation, especially in prime locations.
Switching to serviced accommodation with Cambridge Stays allows landlords to tap into this growing market while enjoying expert support to optimise their returns.
2. Key Benefits of Serviced Accommodation for Landlords
1. Higher Returns on Investment
Serviced accommodation often delivers significantly higher yields than buy-to-let properties. For example, a property rented at £1,200 per month as a long-term let could generate £150 per night as a short-term let. With an average occupancy rate of 70%, that property could earn over £3,000 per month.
2. Flexible Management Options
Serviced accommodation provides landlords with the freedom to adjust their property’s availability. Cambridge Stays offers comprehensive management services, handling everything from bookings to cleaning, so you can enjoy the income without the hassle.
3. Seasonal Profit Maximisation
Cambridge’s seasonal demand for tourism, conferences, and university events means landlords can adjust pricing to maximise revenue during peak periods.
4. Tax Efficiency
Furnished Holiday Lets (FHLs) are treated differently from traditional rentals for tax purposes. Benefits include:
Deductible expenses such as mortgage interest.
Capital allowances on furnishings and equipment.
Tax advantages on profits.
5. Reduced Long-Term Tenant Risks
With no long-term tenant commitments, landlords can avoid potential issues such as late rent payments, tenant disputes, and costly evictions.
6. Enhanced Property Maintenance
Serviced accommodation requires regular cleaning and upkeep, ensuring that your property remains in excellent condition compared to long-term lets, where wear and tear can accumulate.
3. Why Cambridge is Perfect for Serviced Accommodation
Cambridge is an ideal location for landlords transitioning to serviced accommodation. Here’s why:
Year-Round Demand: With its world-renowned university, thriving business sector, and historic attractions, Cambridge attracts tourists, academics, and professionals throughout the year.
Diverse Tenant Base: From business travellers to holidaymakers, serviced accommodation appeals to a wide range of visitors, ensuring consistent bookings.
Prime Location Benefits: Properties near Cambridge’s city centre, train station, or historic landmarks are particularly sought after, offering premium pricing potential.
Cultural and Business Events: Cambridge hosts conferences, festivals, and academic events that draw short-term visitors in need of high-quality accommodation.
Cambridge Stays understands the unique dynamics of the Cambridge market, helping landlords position their properties for maximum success.
4. How Cambridge Stays Simplifies the Transition
Switching from buy-to-let to serviced accommodation may seem complex, but Cambridge Stays makes the process seamless. Here’s how we help:
Property Assessment: We evaluate your property to determine its suitability for serviced accommodation, including potential earnings and market demand.
Full-Service Management: From marketing to guest communication, cleaning, and maintenance, we handle every aspect of your property’s management.
Dynamic Pricing Strategies: Our data-driven approach ensures your property is priced optimally for both peak and off-peak seasons.
Listing Optimisation: We create professional listings with stunning photography, detailed descriptions, and keyword-rich content to attract bookings.
Legal and Compliance Support: Cambridge Stays ensures your property meets all legal requirements, including FHL regulations and local licensing.
5. Steps to Transition from Buy-to-Let to Serviced Accommodation
Step 1: Assess Your Property
Identify if your property is suitable for short-term lets. Key factors include location, size, and amenities.
Step 2: Upgrade as Needed
Invest in furnishings, décor, and essential amenities such as Wi-Fi, smart TVs, and fully equipped kitchens to enhance your property’s appeal.
Step 3: Partner with Cambridge Stays
Leverage Cambridge Stays’ expertise to manage the transition. Our team will guide you through every step, from pricing strategies to guest management.
Step 4: Market Your Property
Cambridge Stays creates professional listings across platforms like Airbnb, Booking.com, and our own website to ensure maximum visibility.
Step 5: Monitor and Adjust
We provide regular performance reports and adjust strategies based on market trends, ensuring your property remains competitive and profitable.
6. Success Stories: Real Landlords, Real Results
Case Study 1: From Long-Term Let to Short-Term Success
A landlord with a two-bedroom flat in Cambridge city centre switched to serviced accommodation with Cambridge Stays. After staging, professional photography, and pricing adjustments, the property’s monthly income doubled within six months.
Case Study 2: Maximising Seasonal Demand
A riverside property transitioned to short-term lets ahead of Cambridge’s peak tourist season. With Cambridge Stays’ dynamic pricing strategy, the property achieved 90% occupancy and generated 50% more income than the previous year.
Why Partner with Cambridge Stays?
Cambridge Stays is a trusted partner for landlords making the switch to serviced accommodation. Our expert team ensures your property is optimised for the short-term rental market, delivering higher returns with minimal effort on your part. From marketing to management, we handle every detail, allowing you to enjoy the benefits of this lucrative rental model.
Ready to Make the Switch to Serviced Accommodation?
Discover the full potential of your property with Cambridge Stays. Transitioning from buy-to-let to serviced accommodation can transform your rental income and provide a more flexible, rewarding experience as a landlord.
Contact Us Today to learn how Cambridge Stays can help you maximise your property’s earning potential with serviced accommodation.
Comments