By Jamal Campbell — Serviced Accommodation & HMO Investment Strategist
Struggling to get real returns from your buy-to-let?
Most investors don’t realise they’re sitting on a better play.
Here’s how serviced accommodation flips the model.
What You’re Really Running: A Micro-Hotel
Serviced accommodation (SA) is not just another rental strategy. It’s the hospitality-powered cousin of your standard buy-to-let. Think short stays, direct bookings, and flexible pricing.
You’re not housing tenants. You’re hosting guests — on a nightly, weekly, or monthly basis.
Your flat isn’t just rented. It’s now earning like a hotel room.
Serviced Accommodation vs. Buy-to-Let
Let’s break down the maths Jamal-style:
- BTL: 1-bed flat, 12-month AST → £600/month net
- SA: That same flat at £85/night × 20 nights = £1,700/month
Even after bills, cleaning, and OTA fees? Still better returns.
But here’s the kicker — you also get:
- Pricing flexibility during high seasons or events
- The option to vet your guests
- Exit routes if SA demand dips
Why So Many Investors Pivot to SA
- Better ROI: Done right, 2–3x the profit of BTL
- No tenant drama: Guests leave, cleaners reset
- Fast scaling: Rent-to-rent, management, or full ownership
- Adaptability: Convert back to single let if needed
You’re in control — but only if you treat it like a real business.
But Let’s Not Pretend: SA Is Not Passive Income
This is hospitality. It’s not hands-off, and definitely not “set and forget.”
To do it right, you need:
- Cleaners on rotation
- Check-in/check-out systems
- Guest messaging (yes, sometimes at 1 a.m.)
- Dynamic pricing tools
- OTA sync and listing management
Don’t automate everything and walk away. That’s how folks burn out.
“Systemise or suffer.”
What You Need to Run SA Properly
Before you jump in, make sure these are locked:
- Furnishings: Fully stocked — from beds to cutlery
- Cleaning crew: Fast turnover between stays
- Entry system: Key safe, smart lock, or manual
- Listings: Airbnb, Booking.com with strong photos + pro copy
- Software: Uplisting, Hospitable, Pricelabs
- Legal: Right insurance, planning permission, mortgage terms
Miss one of these, and you’re asking for guest complaints or worse — fines.
Who Books SA?
It’s not just holidaymakers. Your ideal guests often include:
- Contractors (2–12 week jobs)
- Families in insurance rehousing
- Business travellers
- Visiting relatives
- Tourists (if your area’s right)
Do your market research. Don’t guess.
Rookie Mistakes I See All the Time
Here’s what can wreck your deal before you start:
- Paying rent that’s more than 35% of monthly income
- No break clause in your agreement — get trapped for years
- Running SA on a standard BTL mortgage (don’t risk it)
- Ignoring local planning laws (like London’s 90-day rule)
Deal Structures That Work
You don’t need to own the property — here are three ways to run it:
Rent-to-Rent (R2R)
You lease the unit, furnish it, and run it as SA. Fast entry. Requires negotiation and solid contracts.
Management Model
You run SA for landlords. They keep the property; you take a management fee or percentage.
Important: Structure your fee in a halal-compliant way.
Ownership Model
You buy, set up, and keep all the profits. Bigger entry cost, but full control.
What to Know About Planning & Compliance
Especially if you’re in cities like London, this part matters:
- C1 Use Class may be required
- You might be limited to 90 nights/year
- Use specialist insurance
- Confirm your lender is cool with SA
Don’t leave this stuff vague. That’s how people end up with legal headaches.
Final Word from Jamal
SA is powerful. But only if you build it right.
You need:
- Market data (AirDNA, occupancy tools)
- Systems (cleaners, pricing, guest communication)
- A real strategy (not just listing and praying)
- Automation with oversight (don’t ghost your guests)
You’re not renting a unit. You’re running a business. Treat it like one.
And always remember:
The barakah is in the diligence, not just the deal.
Need Help on Your Next SA Deal?
Use my Serviced Accommodation Deal Checker.
We’ll break it down, line by line — so you know before you commit.