Replay Podcast 85 – Why Serviced Apartments is a Short Term Business Model
The 'Serviced Apartment' business model is a relatively 'new' model (although we were doing these around 12 years ago before AirBnB).
According to Wikipedia, a serviced apartment (also known as a service apartment or an extended stayapartment) is a fully furnished apartment available for short-term or long-term stay, providing hotel-like amenities such as room service, house keeping, a fitness center, a laundry room, and a rec room.
The issue is that they're being marketed as the latest and greatest way to get into property. And whilst I would agree they are a business model that can generate a lot of cash quickly, I have concerns over the longevity of this business model.
More so because recently in London, they have been given a maximum of 90 days lettings only.
Take a listen and see what you think.