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Why does the Serviced Accommodation model benefit landlords?

Serviced Accommodation is an amazing way to add value to landlords in the current climate, giving them the ability to make an extra income.

Study with bike

  1. Uplift in Profits

Following a typical rent-to-rent model, landlords are not gaining an uplift in profits, as they are charging a fixed rental amount each month. This means they cannot take advantage of exterior factors that will cause a rise in the nightly price of their accommodation in Brighton, such as Pride, music festivals and the summer months.

Using pricing analysis tools, we ensure as a management company that the property is priced at the optimum rate at all times, which is a huge benefit to landlords cash flow and can often earn them double the amount they would earn renting the property.

2, Legislative Benefits

Landlords are also not able to claim the legislative benefits that are available when using their property as serviced accommodation, which are as follows;

  • Exemption from the EPC Rating 2028 Legislation - As the property is being let as a furnished holiday let, and the guest is not responsible for paying the energy bills.

  • Mortgage Interest is tax deductible - Section 24 of the Finance Act 2015 does not apply as the property is a furnished holiday let.

  • Capital Gains Tax - On the sale of a furnished holiday let, relief can be claimed to only pay Capital Gains Tax at 10%, as opposed to the usual rate of 18/28%

  • Tax Deductible Expenses - Furnished holiday lets are treated like a business, and expenses can be offset against the income, such as utility bills, advertising and agency fees, loan interests, cleaning products and maintenance costs etc.

Rental block with multiple apartments

3. Property Condition

The property will be kept in pristine condition at all times, due to the requirement to consistently clean the property and keep it well maintained for guests. The regular wear and tear that comes with renting out a property, will not be experienced by owners of serviced accommodation.

Short-term rental house

Serviced accommodation is increasingly getting more and more popular in the UK with 4,747 AirBnb properties in Brighton. This model has huge benefits to landlords, and enables them to potentially double their income over the rent-to-rent model.

If you are wanting to run your property as a serviced accommodation, and need assistance in the management, Stay for Less Ltd is here to make you a return on investment!


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