What are the advantages and disadvantages of selling serviced apartments by hotel leasing?

Generally, there are two kinds of serviced apartments for rent, one is for rent after the owner sells them. Both have their advantages and disadvantages.

The leased products are managed by a third-party company. As a hotel, the rent is more stable, the lease period is longer, and the rate of return may be around 5%, which saves a lot of time and cost. If you sell it without a lease, you have to find a tenant yourself. The rent may not be paid in time and it is not so stable.

But the hidden danger of this kind of products is that after a period of time, when the third-party responsible person withdraws from the field and the equipment is not so new, it may be difficult to get rid of it at this time. After all, renting to some people for a long time is different from living every day. This house gives the impression that it is only for rent and not for sale.

More importantly, two things will happen. One is that the hotel will withdraw from the market, and the house will give people a once-declining hotel image, which is difficult to sell. The second is that the hotel continues, but whether to continue to rent, the owners have different opinions. Inconsistent and prone to problems.

If the whole building is rented by individual customers, there may not be good property management, and it is hard to say what it will be like to sell the property in the future.

Is there a better way? Maybe there is.

In the future, we should understand that the greatest management value of serviced apartments lies in the management itself and needs unified management. For example, the popular long-term rental apartment model. The best way is for the property management company to manage the public * * * interface, and manage the long-term rented apartment in the unit entrance guard. This is a direction that can be expected.