Property investment is a very diverse investment opportunity that offers a lot of different ways to make a profit. The most common strategies are to buy a residential property and rent it out, or buy a commercial property and hire office space to businesses.
Some investors may also buy cheap properties, renovate them and then sell them on for a profit. However, there are other ways to invest in property, like serviced accommodation and rent 2 rent.
These strategies are gaining in popularity and right now, they are dominating the marketing. Read on to learn more about serviced accommodation and rent 2 rent properties, and how they could benefit property investors and construction businesses.
What Is Rent 2 Rent?
Some property owners that are currently renting their property out may decide that they no longer want to manage the property. This may be because they do not feel that they are making enough profit or they are retiring and they don’t want to manage the property anymore. A lot of investors are stepping in and offering guaranteed monthly rent to these landlords, which is a very attractive prospect for them.
If you take this approach and offer to pay the rent to the landlord, you can then rent the property out in a way that creates more income than you are paying the current landlord each month. Anything you make on top is your profit and the landlord is still getting their rent each month, so it’s a win for both of you.
There are a few different ways that you can generate more income from the property. In many cases, investors will turn a single occupancy house into an HMO (house of multiple occupation) for students or working professionals, for example. By renting single rooms, you can generate more income and make a profit.
Another very common strategy is to turn the property into serviced accommodation that is rented out on a very short term basis.
What Is Serviced Accommodation?
Serviced accommodation is aimed at people that are travelling, either for business or pleasure and want an apartment of their own instead of a hotel room. A lot of people want their own kitchen and washing machine, for example, which you cannot get in a hotel. Serviced accommodation has become so much more popular since the advent of sites like Airbnb, so these kinds of properties are dominating the market right now.
There are a lot of rent 2 rent opportunities out there for people that are looking to invest in serviced accommodation. However, you can also buy your own property outright and rent it out as serviced accommodation. Construction companies and property developers can also benefit from the increase in demand for serviced accommodation by building large apartment blocks designed for short term lets. As long as you have the right construction insurance in place and you analyze the local markets to ensure that there is demand in the area for serviced accommodation, there is potential for big profits.
If you are a construction company or a property investor looking for new opportunities, you should consider rent 2 rent and serviced apartments.