Why invest in Serviced Accommodation?
In terms of the investment return, renting out a two-bedroomed apartment to holidaymakers can produce an eye-catching income of between £12,000 £15,000 per annum. Larger properties can average up to £30,000 a year gross. Some of our landlords have seen a increase in their rental income of over 150% in the first six months!
The benefit of serviced accommodation as a property investing strategy is that you can do it in everything from studio apartments to large detached houses.
If you operate under the “furnished holiday letting” rules, you can offset all expenses including full mortgage interest against the rental income. Running a serviced accommodation business is treated by HMRC in the same way as any trading business, so losses can be carried forward and offset against future profits. Furnished serviced accommodation also qualifies for entrepreneurs’ relief.