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Real Estate

October 30, 2024

Why Serviced Apartments Are More Profitable Than Traditional Letting

The short-term rental market is booming, and savvy property owners are taking notice. While traditional tenancies typically yield 4-6% returns annually, serviced apartments can generate up to 30% higher returns. Our properties in Bath, Winchester, and Southampton consistently outperform traditional letting yields, thanks to our dynamic pricing strategy and high occupancy rates.

Case Study: The Roman Retreat, Bath. Take the example of Sarah, who partnered with us in 2023. Her two-bedroom Georgian apartment in central Bath previously generated £1,100 monthly through traditional letting. After joining our portfolio, the same property averaged £2,200 monthly over 12 months, even accounting for seasonal variations. Despite higher running costs for utilities and services (approximately £400 monthly), Sarah's net income increased by 45%.

Key Performance Indicators:

Average daily rate: £145
Occupancy rate: 82%
Annual revenue: £43,430
Traditional letting equivalent: £13,200
Net profit increase: 45%

The numbers speak for themselves, but it's not just about higher returns. Our professional management means zero hassle for property owners like Sarah.

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