The Ultimate 2025 Serviced Accommodation Guide

Serviced accommodation is no longer just a buzzword - it’s become one of the most in-demand and profitable sectors in UK property. Whether you're a first-time investor or adding another stream to your portfolio, serviced accommodation offers flexible tenancies, impressive nightly rates, and a growing audience that spans from business travellers to long-term relocators.

‍

But what exactly is serviced accommodation? How does it compare to traditional buy-to-let? And more importantly, is it right for your investment strategy in 2025?

‍

In this ultimate guide, we’ll answer all of that and more.

• Serviced accommodation bridges the gap between hotels and residential lets, offering flexible, furnished stays with hotel-style amenities.
• High nightly rates and strong occupancy potential mean serviced accommodation can deliver higher returns than standard buy-to-let.
• You’ll need to consider regulations, management, and local demand - but the reward is often worth the effort.
• CasaCity offers a fully managed serviced accommodation model in Manchester, supporting investors with hands-free property income.

‍

Serviced accommodation is a type of short-term let that’s fully furnished and provides guests with hotel-like services such as WiFi, cleaning, and linens - all while offering the space and privacy of a residential home.

Stays can range from one night to several months, making serviced accommodation ideal for:

• Business travellers on contracts
• Tourists on city breaks
• Relocators looking for a base before moving permanently
• Families in between homes

‍

Unlike traditional ASTs (Assured Shorthold Tenancies), serviced accommodation allows for flexible bookings and dynamic pricing - making it a more agile income stream for landlords and investors.

The UK travel market is bouncing back stronger than ever. Business travel is growing, domestic tourism remains high, and remote working has created a new wave of "working holidays".

Here’s why more investors are entering the space:

• Higher nightly income compared to long-term lets
• Greater flexibility - no fixed-term contracts with tenants
• Wide guest pool from professionals to holidaymakers
• Faster turnarounds and easier to sell with vacant possession
• Dynamic pricing potential to maximise income during peak periods

‍

Manchester, Birmingham, Liverpool, and London are especially strong cities for serviced accommodation, due to consistent tourism, business events, and regeneration.

Let’s talk numbers. While a traditional buy-to-let in Manchester might yield 6-7% NET annually, serviced accommodation can push that figure into the 10–15% range - especially when managed efficiently.

However, success depends on:

• ‍Occupancy rates – 70–80% is a healthy benchmark
• ‍Nightly pricing – influenced by property quality, location, and season‍
• Operating costs – such as cleaning,utilities, and platform fees‍
• Management style – self-managed or fully managed (like CasaCity)

‍

For example, a 1-bed city centre apartment charging £100 per night at 75% occupancy could bring in around £2,250/month in gross income - far outpacing the same property under a long-term tenancy.

To stand out (and stay booked), your property should include:

• Quality furnishings (ideally modern and cohesive)
• High-speed WiFi and Smart TV
• Fully equipped kitchen with cookware
• Fresh linens, towels, and toiletries
• Weekly or per-stay cleaning
• Safe and secure key access or smart lock system

‍

All of this contributes to the“home-from-home” experience guests are after. CasaCity supports landlords by offering professionally curated furniture packs and hands-free management to create hotel-standard experiences that keep guests returning - and reviewing.

At CasaCity, we provide a complete end-to-end solution tailored to investors looking to enter or scale within the serviced accommodation space. We work widely with luxury new-build properties in Manchester, handpicked for their short-let viability and rental potential.

Our services include:

• Stylish furniture packs designed for letting
• Fully managed serviced accommodation operations
• Professional cleaning, guest support, and key handling
• Dynamic pricing to maximise income and occupancy

‍

Whether you’re based in the UK or investing from overseas, we handle everything from check-in to compliance - so you can enjoy the returns without the legwork.

It’s not just about finding a great apartment - success in serviced accommodation comes down to due diligence and planning. Here are a few things to check before jumping in:

• Mortgage type: Many lenders require a commercial or short-let mortgage. Standard buy-to-let mortgages won’t do.
• Planning regulations: Some councils (like London) enforce a 90-day limit on short-term lets without planning permission. Manchester currently allows full-year lets - but this may change in future.
• Lease terms: Check your lease allows short-term letting. Some buildings restrict holiday lets or require consent from the freeholder.
• Management needs: Guests expect fast responses, spotless properties, and easy booking. If you can’t manage it yourself, make sure you partner with a company who can.

‍

CasaCity takes care of all of this - making it easier for investors to enter the market safely and confidently.

Serviced accommodation is one of the most exciting opportunities in the 2025 UK property market. With flexibility, strong returns, and growing guest demand, it offers landlords a high-performing alternative to traditional buy-to-let.

Whether you’re looking to diversify, boost your cash flow, or build a passive income stream, serviced accommodation could be the strategy that works for you.

CasaCity makes it possible. From sourcing to set up and management, we take care of it all - so you can sit back, relax, and watch the bookings roll in.