Earn money by leasing your second house as a serviced apartment

Property | admin | November 3, 2011 at 5:47 am

Did you know that your vacant apartment can earn some money for you and, that too without having to rent it out? Lot of people who buy residential property in other cities for the sake of investment are often wary of renting it out to some unknown tenants.

These apartments come with basic amenities for daily use

A serviced apartment is often a fullyfurnished accommodation which is available for short-term or long-term stays. These apartments come with basic amenities for daily use, which include a kitchen with cooking range, kettle , microwave, a washing machine etc. If you don't want to cook or do the routine chores, you can even sign up for a complementary breakfast, laundry etc.

"The concept of serviced apartments works very well in the metros and larger tier-II cities, where starred hotels are notoriously overpriced. Serviced apartments are the emerging trend in the corporate hospitality sector. Often, the executive traffic of many MNC and domestic companies is too erratic to justify a standalone company guesthouse," says Badal Yagnik, managing director, Chennai & Coimbatore , Jones Lang LaSalle India.

There are a number of operators whom you can engage to run a serviced apartment . This will help you to reach out to the right clients and improve the flow of customers and your business.

With a booming economy and IT and ITeS sectors being in demand, a growing number of expat professionals are looking to oversee business operations in India. And this is exactly the fraternity that is pushing the growing demand for service apartments in India. "There is a good demand for well-run serviced apartments in India, particularly in the six major metros in India which can easily absorb the current supply of service apartments.

Serviced apartments are 20% cheaper vis-a-vis hotels for longer stays. Hence, many companies opt for serviced apartments for a medium-to-long-term stay for their employees. A company wanting to house a large number of its employees on a four-month training programme in a metropolitan city would opt for serviced apartments, as the cost of a star hotel would be prohibitive. Similarly, employers look at serviced apartments for expatriate relocation where the quality of housing is a key concern.

It is certainly an option, though the returns on leasing it out would be lower than actually operating it on a business level. There are two main advantages of leasing out a serviced apartment. Firstly , it provides an incentive to maintain the house.

Source: Economic Times