Please let me know the pros and cons of serviced apartments.

The renovated small-sized serviced apartments with poor living functions have a single layout, no independent kitchen or living room, lack of sufficient storage space, and only have the temporary residence function of a hotel. Although they have some advantages in price, However, from a comprehensive perspective, it is not suitable for daily life and will also devalue the investment.

The cost is too high. Since the operation of serviced apartments is also very complicated, the principles of accuracy, organization and convenience must be followed when positioning. Blind pursuit of luxury will not only increase costs, but also be out of touch with the market. In addition, developers lack experience in developing such products, but insist on running their own operations, which will also leave hidden dangers for conflicts after handover.

The vacancy rate is low. Most serviced apartment projects only have a vacancy rate of more than 60%, and at most only about 70%. This invisibly increases the actual use of the units. The converted unit price of the area reduces its cost performance and directly affects its function of maintaining and increasing value. Hotel property management fees are greater than apartment property management fees

Serviced apartments are an emerging industry in the past four or five years and are very popular internationally. The main difference lies in the property rights of the house. Traditional hotels are owned by a large owner (usually a certain group or company), which requires huge financial resources as backing support. I know the one opposite the Australian Embassy, ??which has single-family property rights (individual property rights). , in the form of small proprietors. In fact, when it was originally developed, it was planned to be sold as commercial housing, but suddenly someone or a small company paid to rent some or all of the rooms (similar to a second landlord) and then named a certain hotel and rented it as a hotel for a long time (calculated monthly) Or run it on a daily basis. However, owners who sign a contract with the hotel will receive some free room nights every year (generally they will let you stay for free 7 times a year), and then dividends will be distributed according to the contract at the end of the year. If your friend wants to use it as a real estate investment, it is a good choice. It is more cost-effective than renting it to others yourself. It’s also worthwhile to wait until the contract expires to stop renting and sell the property. It's not cost-effective to live by yourself. The property fee is generally about 4-6 yuan/square meter, and it also has central air conditioning. Cold water, hot water, and reclaimed water are billed separately. Hope my answer is useful to you.