When a Rental Property Stops Paying: Could Serviced Accommodation Be an Alternative?

Over the past few weeks, we've spoken with several landlords who have shared remarkably similar experiences.

A tenant stops paying rent.

Arrears begin to build.

The landlord eventually starts the process of regaining possession.

And when they finally get their property back, they can sometimes face another problem... the condition it's been left in.

For a landlord, the financial impact isn't necessarily limited to a few missed rent payments.

There can be lost rental income, legal and possession costs, repairs, decorating, replacement furniture or flooring and then another period without income while the property is brought back to a lettable standard.

Once everything is ready again, the landlord faces the same decision:

Who do I rent it to next?

The Real Cost of a Problem Tenancy

A rental property is an investment, and prolonged periods without income can quickly affect its performance.

Consider a property renting for £900 per month.

Several months of unpaid rent can represent thousands of pounds in lost income before accounting for any legal costs or repairs.

Then imagine finally regaining possession and discovering the property needs significant work before somebody else can move in.

Suddenly, the landlord isn't just dealing with rent arrears. They're spending additional money simply to get their investment earning again.

For landlords who have experienced this first-hand, it's understandable that some begin questioning whether they want to repeat the same cycle.

Could Serviced Accommodation Offer an Alternative?

One option worth considering is professionally managed serviced accommodation.

Instead of operating solely as a conventional residential rental, a suitable property can be offered as furnished temporary accommodation for guests such as contractors, business travellers, relocating professionals and people visiting an area for work or other temporary reasons.

The operating model is different.

Bookings are typically shorter, the property is actively managed, professional cleaning takes place between stays, and the condition of the accommodation can be checked regularly.

This doesn't eliminate risk, no property strategy does.

However, it can give an owner a very different relationship with how their property is operated and monitored.

Your Property Is Regularly Seen

One advantage we particularly value at Paragon Stays is the frequency with which serviced accommodation properties are accessed by the operating team.

Cleaners regularly enter between bookings.

Maintenance issues can be reported.

The condition of the property can be monitored.

And the accommodation is continually prepared for the next guest.

Compare that with a traditional tenancy where a landlord may have far fewer opportunities to see the internal condition of the property.

That additional operational oversight can be particularly appealing to owners who have previously had a difficult rental experience.

But Serviced Accommodation Isn't Right for Every Property

This is important.

We wouldn't suggest that every landlord experiencing problems with traditional renting should simply convert to serviced accommodation.

The numbers still have to work.

Location, local demand, property type, nightly rates, occupancy, operating costs, planning and other legal or mortgage/lease considerations all need to be assessed.

A fantastic house in the wrong market can still make a poor serviced accommodation investment.

That's why at Paragon Stays we assess the area as well as the property itself before recommending an approach.

A Different Way of Looking at Your Property

For some landlords, traditional renting will remain the right strategy.

For others, particularly those who have experienced prolonged arrears, possession proceedings or significant damage, it may be worth exploring whether their property could work differently.

Serviced accommodation won't remove every risk associated with owning property.

But professionally managed, it can provide an alternative way of generating income while keeping the property actively operated, regularly serviced and closely monitored.

Could Your Property Work as Serviced Accommodation?

If you're a landlord considering your options, Paragon Stays can assess your property and the local market to see whether serviced accommodation could be suitable.

Whether you're approaching the end of an existing tenancy, have recently regained possession of a property, or simply want to explore a different strategy, we'd be happy to have an initial conversation.

See What My Property Could Achieve Below

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Get in touch for a chat

If you are a landlord considering alternatives to traditional renting, or you would like to explore whether serviced accommodation or guaranteed rent is right for your property, we would be happy to help.

Get in touch for a free property assessment.

No pressure. No obligation. Just honest advice.

Contact

Reach out for bookings or landlord enquiries

Email: jamie@ppgproperty.co.uk

Collerick Close, Alsager, Cheshire