Profits and Extra Costs involved in your Serviced Apartments

If you are relocating and don’t want to sell your house/apartment/flat for nickels and dimes as well as can’t move your well-furnished house as it may be cost double of the property rate. Here is the best solution to tackle your problem from which you can see some profit and at the same time should have to spend on your house/apartment/flat for a makeover that will give a new look to your apartment and change it as serviced apartment, which you can rent and enjoy some good returns on your property.

But the additional cost spent on your apartment to redecorate it and make it fit to rent it as a serviced apartment that will definitely bring you double the returns when compared to the regular lease and many property veterans also support this.

Let us take a look at the process involved in the conversion of your apartment/flat into a serviced apartment:

Additional amenities to add in your apartment

In a realty world, a serviced apartment is considered equivalent to a three-star hotel that comes with all amenities like air conditioners, refrigerator, washing machine, television with cable connection and fully-equipped kitchen and some also have communication facilities like landline and computer with Wi-Fi connection. If possible the owner can also provide laundry service by partnering with the local laundry service provider and can charge the tenant with extra amount.

One of the property experts says, since the individuals needs differ, hence the owner in order to accommodate their needs may have to implement few changes on timely basis that will increase the maintenance cost. In case, if your apartment is in a housing society, one might have to pay additional monthly maintenance costs along with commercial charges and other civic taxes.

Steady flow of clients

The owner must ensure that he/she receives a steady flow of clients and to have this, the owner should tie up with some travel agency and for this the apartment should also be located in a strategic location.

Most importantly, the owners should not price the rental value more than the three star hotels and it should be 20 to 30 per cent less so that travelers choose to stay in your accommodation. And, also make sure that your apartment is located close to any corporate office so that you make a long-term agreement with the office clients.

Rental value on your serviced apartment

One of the real estate market watchers says that by renting a service apartment one could earn annual returns of 10 to 15 per cent of their property value. But, the owner also has to make sure that rental value is evaluated in such a way that it covers the maintenance cost and the related commercial taxes that has to paid.

Housing society standards

If you are changing your apartment into a serviced apartment then the owner should inform the housing society as it is mandatory for the housing society to get a no objection certificate from the local police. The complete agreement is regarded as a commercial one and will cost accordingly by the authorities of civic administration and the housing society.

One of the market watchers also says that as it is easy to get regular tenants for serviced apartments but it is difficult to get permanent visitors and for this the apartment should be located strategically. It is also trending that buyers are buying apartments/flats and converting it into serviced apartments instead of re-selling it or leasing it out.

This article published by Dreamz Infra Blog. Follow Abuse Dreamz Blog for more Real Estate updates and Click 'Dreamz GK Reviews' to see Customers Feedback on Dreamz Infra.