Free Guide to Serviced Accommodation
Looking to get started in serviced accommodation but not sure on where to start ?
This is a free guide on how to get started in serviced accommodation, we are going to also provide you with:
What is serviced accommodation ?
Serviced accommodation is a type of short-term rental that provides guests with more than just a place to stay.
Unlike traditional hotels or vacation rentals, serviced accommodation offers a range of additional services and amenities to make your stay more comfortable and convenient.
Types of serviced accommodation
Serviced accommodation can take many forms, from studio apartments to multi-bedroom houses, and can be found in a variety of locations, from bustling city centre’s to tranquil countryside retreats. What sets serviced accommodation apart is the level of service and attention to detail that guests can expect during their stay and how unique these properties can be.
Whether you're traveling for business or leisure, serviced accommodation can offer a more personalised and tailored experience compared to a traditional hotel.
With the ability to enjoy the comforts of home while still having access to hotel-like services, serviced accommodation is an increasingly popular choice for guests seeking a more authentic and immersive travel experience.
How to get started in serviced accommodation
If you're interested in getting started in the serviced accommodation business, there are a few key steps to consider.
Research local market
First and foremost, it's important to research the local market and understand the demand for serviced accommodation in your area. This will help you determine the type of property and services that are most likely to appeal to your target audience.
Check you can do serviced accommodation
Once you've identified a suitable property, you'll need to ensure that it meets all the necessary legal and regulatory requirements for operating a serviced accommodation business. This may include obtaining the appropriate licenses and permits, as well as ensuring that the property meets all safety and building codes.
Amenties
Another important consideration is the type of services and amenities you'll offer to your guests. Will you provide daily housekeeping, on-site staff, or concierge services? Will you offer additional amenities like a gym or a communal lounge area? Carefully considering the needs and preferences of your target market will help you create a serviced accommodation offering that truly stands out, this is very important as you need to make sure you are unique in the market place
4 tips for financing serviced accommodation business
Starting a serviced accommodation business can be a significant financial undertaking, but there are several options available to help you secure the necessary funding.
Here are three tips for financing your serviced accommodation business:
Explore property investment loans - Many banks and lenders offer specialised property investment loans designed specifically for serviced accommodation businesses. These loans can provide the capital you need to purchase or renovate a property, as well as cover the initial startup costs, often it will be required for them to be more creative for example a commercial to residential conversion or it to have something that makes it for personal business use also, you will need to put a deposit down if not.
Consider crowdfunding - Crowdfunding platforms can be a great way to raise funds for your serviced accommodation business. By sharing your business plan and vision with a wider audience, you can potentially attract investors who are interested in supporting your venture.
Leverage your personal assets - If you have existing property or other assets, you may be able to use them as collateral to secure financing for your serviced accommodation business. This can be a useful option for those who have limited access to traditional financing sources.
Joint ventures - if you lack the capital but have time and you can find someone with the same interests that has the capital but lacks the time, you can offer a joint venture partnership and build your portfolio together.
Tax & VAT Tips for a serviced accommodation business
Operating a serviced accommodation business comes with a unique set of tax and VAT considerations. Here are some tips to help you navigate the tax landscape:
Register for VAT: As a serviced accommodation provider, you'll need to register for VAT (Value Added Tax) if your annual turnover exceeds the VAT registration threshold. This will require you to charge VAT on your services and submit regular VAT returns to HM Revenue and Customs (HMRC.)
It is advisable to speak to a TOMS accountant, serviced accommodation can apply for this and it will greatly bring down your VAT costings.
Understand income tax obligations: In addition to VAT, you'll need to pay income tax on the profits generated by your serviced accommodation business. It's important to keep meticulous records of your income and expenses to ensure accurate tax reporting, this is around 20% of gross profit unlike VAT which is 20% of turnover or the money you take.
Take advantage of tax deductions: As a serviced accommodation business, you may be eligible for various tax deductions, such as those related to property maintenance, utilities, and costs for setting up your property. Be sure to consult with a tax professional to ensure you're taking full advantage of all available deductions.
Free Serviced Accommodation business plan template
Creating a comprehensive business plan is an essential step in launching a successful serviced accommodation business. To help you get started, we've developed a free business plan template specifically tailored for the serviced accommodation industry.
This template covers all the key elements of a well-structured business plan, including:
Executive Summary: A concise overview of your business, its objectives, and the unique value proposition you offer.
Market Analysis: An in-depth assessment of the local market, including competitor analysis and target customer profiles.
Operations Plan: A detailed description of how you'll manage and operate your serviced accommodation business, including staffing, property management, and service delivery.
Financial Projections: Comprehensive financial projections, including revenue forecasts, expense estimates, and cash flow analysis.
Marketing and Promotional Strategies: A comprehensive plan for attracting and retaining guests, including digital marketing, local partnerships, and guest experience initiatives.
By using this free business plan template, you'll be well on your way to creating a robust and compelling plan that will help you secure funding, attract investors, and navigate the complexities of launching a successful serviced accommodation business.
Free Serviced Accommodation Income Calculator
Calculating the potential income and profitability of a serviced accommodation business is a crucial step in the planning process. To help you get started, we've developed a free Serviced Accommodation Income Calculator that allows you to input your key business variables and generate detailed financial projections.
The calculator takes into account factors such as:
Property details: Size, location, and number of units.
Occupancy rates: Expected occupancy levels throughout the year.
Pricing: Nightly rates for different unit types and seasons.
Operating expenses: Costs associated with staffing, utilities, marketing, and other business expenses.
Profit: The analyser will then show you an estimate profit depending on the information you have researched and entered.
By inputting your specific business data, the calculator will generate a comprehensive set of financial projections, including estimated annual revenue, expenses, and net profit. This information can be invaluable in helping you assess the viability of your serviced accommodation business, identify potential areas for optimization, and make informed decisions about your investment and growth strategies.
Whether you're just starting to explore the world of serviced accommodation or you're an experienced industry professional, our free Serviced Accommodation Income Calculator is a powerful tool that can help you take your business to new heights.