Serviced apartments are those that come with hotel-like benefits. They provide facilities for the residents with maid service, reception and concierge services. There are also amenities like a pool and gym. They are usually located in a prime area in the city and are of high quality.
Investing in serviced apartments could ensure a steady cash inflow for you through rental payments, as well as a satisfying lifestyle for the residents.
Serviced apartments provide steady inflow of cash
Serviced apartments call for entering a contract with a management company instead of an individual tenant. Thus, you are sure that you will receive a steady rental income. At the same time, the management company pays you the agreed-upon rent for the duration of the lease. This ensures that you do not have to worry about the rent being on time. Moreover, you get a guaranteed income of about 5-6% with serviced apartments, making this a very lucrative investment.
Serviced apartments are easier to rent out
Serviced apartments usually come with a long-term lease with a management company. That means that even if your tenant chooses to transfer to another property, you do not need to worry that your income will decrease. The Management company rents the property from you, even when it is unoccupied. As such, you will receive the rent. The income only stops when you terminate the lease agreement.
Serviced apartments are maintenance-free
The management company takes care of the day-to-day maintenance. That way, your investment will not become a burden. The lease agreement you enter with the management company covers things like minor repairs and damages. This ensures a hassle-free, profitable investment. In addition to these, the management company pays off your mortgage, adding to the benefits.
When you buy a serviced apartment, the tenant pays for the landlord outings. They do not incur management or letting fees, resulting in a higher profit for you.
You also get free stay days on the property, thus adding to the convenience of the investment.
If you are looking to buy an apartment as a means of investment and adding to your income, it could be worthwhile looking into serviced apartments, since their pros outweigh the few cons.
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