Cambridge’s property market is one of the most dynamic and lucrative in the UK, offering significant opportunities for investors. While traditional buy-to-let remains a popular choice, serviced accommodation has emerged as a game-changing investment strategy, offering higher returns, flexibility, and resilience against market changes. Here’s why serviced accommodation is the ideal choice for Cambridge property investors and how Cambridge Stays can help you maximise your investment.
1. What is Serviced Accommodation?
Serviced accommodation refers to fully furnished properties available for short-term stays. Unlike traditional rentals, serviced accommodation is geared towards business travellers, tourists, and temporary residents, providing the comfort of a home with the services of a hotel.
Key Features:
Short-Term Stays: Guests typically stay from a few nights to a few weeks.
Flexible Pricing: Nightly rates can be adjusted based on demand, seasonality, and local events.
Professional Management: Many investors opt for property management companies like Cambridge Stays to handle operations.
2. Why Cambridge is Perfect for Serviced Accommodation
Cambridge’s unique combination of academic, business, and tourist appeal makes it an ideal location for serviced accommodation. Here’s why:
1. Year-Round Demand
Tourism: Visitors flock to Cambridge to explore its historic colleges, punting on the River Cam, and vibrant cultural scene.
Academia: The University of Cambridge attracts international scholars, students, and families year-round.
Business Hub: The city’s Science Park and tech startups bring in professionals and conference attendees regularly.
2. Premium Pricing
Properties near Cambridge’s city centre, colleges, or key business districts command premium nightly rates compared to long-term rental prices.
3. Events and Seasonality
University graduations, festivals, and corporate events drive consistent demand, creating peak pricing opportunities throughout the year.
4. Accessibility
With excellent transport links to London and Europe, Cambridge attracts a diverse mix of international and domestic visitors, increasing the pool of potential guests.
3. Benefits of Serviced Accommodation for Property Investors
1. Higher Returns
Serviced accommodation typically delivers much higher income than traditional rentals.
Example: A property earning £1,500 per month as a long-term rental could generate £150 per night as serviced accommodation. With 70% occupancy, this equates to over £3,000 per month—double the income.
2. Flexibility for Investors
Unlike long-term leases, serviced accommodation allows investors to:
Adjust nightly rates for peak periods.
Use the property personally during vacancies.
Transition back to traditional rentals if market conditions change.
3. Resilience Against Market Changes
Short-term rentals are less impacted by long-term tenant trends, rent caps, or changes to buy-to-let regulations, making them a more adaptable investment.
4. Tax Advantages
Serviced accommodation can qualify as Furnished Holiday Lettings (FHLs), offering:
Full mortgage interest relief (unlike traditional rentals impacted by Section 24).
Capital allowances on furniture and equipment.
Business rates instead of council tax in certain cases.
5. Diversified Tenant Base
Serviced accommodation caters to a mix of tourists, professionals, and academics, reducing reliance on a single tenant type and ensuring consistent demand.
4. Challenges of Serviced Accommodation (and How Cambridge Stays Solves Them)
Managing serviced accommodation can be time-intensive, requiring expertise in marketing, maintenance, and guest relations. Cambridge Stays offers comprehensive management services to handle these challenges for investors.
1. Marketing and Visibility
We create professional listings with SEO-optimised descriptions, high-quality photos, and dynamic pricing to attract guests.
2. Guest Communication
Our team manages inquiries, bookings, and guest support, ensuring a seamless experience.
3. Cleaning and Maintenance
Frequent guest turnover requires regular cleaning and upkeep. Cambridge Stays coordinates all services to keep your property in excellent condition.
4. Legal and Compliance
We ensure your property meets all local regulations, including safety certifications and planning permissions.
5. Performance Optimisation
With regular reporting and analytics, we help investors maximise occupancy rates and revenue.
5. Success Stories: Cambridge Investors Thriving with Serviced Accommodation
Case Study 1: Maximising Returns on a City-Centre Flat
An investor converted their buy-to-let flat near Cambridge University into serviced accommodation. With Cambridge Stays managing bookings and pricing, their income increased by 70% within six months.
Case Study 2: Scaling a Property Portfolio
A landlord with multiple properties in Cambridge partnered with Cambridge Stays to transition their portfolio to serviced accommodation. Professional management and dynamic pricing doubled their annual income, enabling further investment.
6. Tips for Investors Considering Serviced Accommodation in Cambridge
Choose Prime Locations: Properties near Cambridge’s city centre, train station, or business hubs perform best.
Invest in Quality: Modern furnishings and high-speed internet attract premium-paying guests.
Understand FHL Rules: Work with experts like Cambridge Stays to ensure your property qualifies for tax benefits.
Monitor Market Trends: Adjust pricing based on seasonality and local events to maximise returns.
Partner with Professionals: Cambridge Stays simplifies management, ensuring stress-free and profitable operations.
Why Partner with Cambridge Stays?
Cambridge Stays offers property investors a turnkey solution for managing serviced accommodation. From marketing and guest communication to maintenance and compliance, we handle everything, allowing you to focus on the rewards of your investment. With local expertise and a proven track record, we’re the trusted partner for Cambridge property investors.
Start Maximising Your Investment with Serviced Accommodation Today
Serviced accommodation is the perfect way to unlock the full potential of your Cambridge property. With Cambridge Stays, you can enjoy higher returns, expert management, and a stress-free experience.
Contact Us Today to learn how we can help you transition to serviced accommodation and maximise your investment.
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