All you need to Know about Running a Serviced Apartment — Finlace Blog (Real Estate Consultant)
Everyone wishes to earn a good income either by doing a decent job or getting into the role of an entrepreneur. In case you own a second house or a property then it presents you with a great opportunity to make some extra money by turning it into a serviced apartment. Many of you might be familiar with the term but for few who still think they don’t know what it means, here is the definition:
“A Serviced Apartment is a fully furnished accommodation which can readily be used for short-term and long-term stays. It provides hotel-like basic amenities to visitors/tenants.”
So now when you know what the term means, let us tell you that there is a huge demand for such serviced apartments in big as well as small cities. People such as travelers, businessmen, students and many other look for such accommodation facilities throughout the world including developing countries like India. We will tell you in this blog article that how you can run a serviced apartment and turn into a great business.
1. A Good Location will always fetch Good Money
The first thing you need is a home/property at a good location. If you have more than one house then you can surely turn the extra one into serviced apartment rather than simply renting the space. Choose the one which provides better road connectivity and transportation facilities. House owners who just own one building can offer one or more levels of the same as serviced apartments. Just remember that location is the key for getting quantity as well the preferred quality of tenants ready to fit in the bill.
2. Renovate and Innovate
If your house is a new one then it is good to go with it but if you think it will need a renovation then investing a little money to transform it would not go waste. Innovating is always important and so you can take some help from an interior designer if that comes into your budget. Otherwise look for ideas on internet and famous interior design magazines which are available in any bookstore. You can choose to add different color hues or use wallpapers to give a comfortable and luxurious look to apartments.
3. Make it look like a 3-Star facility
There is no point in offering a fully serviced apartment if it does not look like one. Why would someone pay for it? Ask this question to yourself or suppose you are the one who will need it. What should be your preferences and concerns? Well, it must be fully furnished and offer the best of facilities, such as:
- Completely furnished apartments — Washing machine — Refrigerators — Air-Conditioning — Recreational area — Swimming pool area (if possible) — Cook — Library — Television — Kitchen facilities — Housekeeping Services and more as you can think of.
4. Homely feel will always add as a bonus
Who doesn’t like to get a homely feel and that too when far away from home? Corporate guest houses and serviced apartments sell like hotcakes if they provide such feel. A good thing is that they get word of mouth publicity among travelers quite fast. Such homely feel can be attributed by the behavior of owner as well as the service staff. Also, the furnishing must have a comfy feel.
5. Getting the tenants you would like to have
Every house owner has preferences when renting out an accommodation and so has the ones offering serviced apartments. So what is the key to get right set of tenants that you would actually prefer? The answer is widespread, list your property, services online and set your preferences. You can choose to list your serviced apartment on websites such as Sulekha, Stayzilla and Airbnb. Mention your preferences like ‘Non-Smokers only’ and ‘We welcome pet owners’.
You can also get some help from real estate agents in getting good set of tenants from time to time. Corporate also look for such facilities these days so you can reach out to companies by mailing them your quotation.
Keep in mind to share some decent pictures of your property.
6. Let an Operator work for you
If you think it is quite difficult for you to manage a serviced apartment then you must get into an agreement of profit sharing with some reputed operator who knows to run the same. In this case, it is always good to screen the background of the operator. Choose the one whom you can trust and keep paying surprise visits to ensure that services are good.
7. Services Feedback and Suggestions Box
Always get suggestions and feedback from your visitors/tenants. This will earn you familiar tenants and set your goodwill in the business. If you think a box is quite an old thing to have, use mail.
8. Have Presence on Social Media/Web
You can’t miss out the fun of having good reputation, leads and lot of engagement for your serviced apartment by owing a blog, social media profiles and probably a website detailing all your services and things that tenants must know about your serviced apartments. Keep up with the innovation and if someone special rented your serviced apartment, do not forget to mention about his/her stay with a preferable review. Get yourself registered on reviewing websites like Trip advisor.
9. Look out for regulatory restrictions
It is always advisable to go by the law which not only helps keeping you safe but ensures the authenticity of your rental services. If you own a property in some residential complex, get a no-objection-certificate from the society. Even if you own an independent villa/house, do follow the regulatory restrictions and licensing norms. Get an advice from legal consultant if you have one. You are liable to pay service tax on any income that you generate from property if you list it as a guest house.
10. Security is a must
Safe living of tenants will not only ensure good flow of business but also make you worry less. It is good to have a centralized security for your property with security personnel from a reputed security provider. Install CCTV’s wherever required after consultation from some premier security services. Having a decent video surveillance gadget at main gate is quite much necessary, so do not overlook this aspect. Give locker facilities to tenants but always advise them to take care of their belongings.
By now, you must have got a fair idea about running a completely serviced apartment. Just to motivate you further, let us share with you some findings by industry experts:
What could a 2BHK Serviced apartment fetch in any Indian metropolitan city?
- Initial Cost= INR 7 lacs to 12.50 lacs
- Expected Income= INR 7,000- INR 10,000 a night!
Now who wouldn’t like to roll in that kind of money? All you require is a little of enthusiasm and passion for running a serviced apartment!
Originally published at finlace.com on July 6, 2015.