With UK house prices continually increasing and rental rates through the roof, it is no surprise that people are opting for less traditional forms of accommodation such as serviced apartments.
Reports have even identified that in 2015, it was cheaper to stay in a five star London hotel than to rent the equivalent studio apartment. With statistics like these, it is easy to see why people are looking to get better value for money, but which option is better all round – serviced apartments or rental contracts?
Renting offers more flexibility than a mortgage as contracts are usually between 6 and 12 months long meaning that when this time is up you can easily look to relocate if that is what you want to do. Unlike having a mortgage, you are not liable to find someone to fill your tenancy whereas when selling your home, it is your responsibility to find a buyer.
Serviced apartments offer even more flexibility than renting, you can stay in a serviced apartment for much shorter periods of time than renting meaning that it is more suitable for temporary job contracts or even leisure stays. Similar to renting, in serviced apartments you also do not need to worry about finding someone to move in once you leave.
With rental contracts there are usually lots of legal procedures and documentation required in order for you to be able to go ahead with the contract. This can take up lots of time, cause lots of stress and even involve paying significant money in admin fees and deposits. Once this is complete you also need to then sort out utility bills etc which are added time and stress very early on in the process.
At serviced apartments it can be a lot easier to get sorted, many booking procedures are similar to those of a hotel, all which can be easily completed online at the click of a button. There are usually no big contracts, reference checks or even deposits which can greatly reduce the stress of booking. With serviced apartments there are also no additional responsibilities such as utilities, taxes and other bills such as wifi as these are all included within the rate.
With renting, there are the chances of unfurnished properties, meaning that you will have to purchase all of the furniture to go inside. Although you now own these furnishings it also means having to move them to a new property when you decide to move as landlords will normally charge a fee if you leave behind any furniture that was not in the inventory when you moved in.
However serviced apartments are always fully furnished meaning that you can move straight in and not have to go without a sofa or bed frame whilst waiting for them to be delivered. It also means that when you move out there is unlikely to be any large pieces of furniture to arrange transportation for.
The cost of renting and serviced apartments depends greatly on a number of factors such as location, property size, seasonality and many more. Depending on the length and certainty of your residency within a location is going to be a big deciding factor. Although, day by day the cost of renting will likely be less, you will have to factor in the cost of bills and purchasing furniture which you will not have to do at a serviced apartment. Similarly if you have to relocate suddenly, with renting if you are tied into a contract you may have to continue paying until your contract ends even if you have moved out.
Deciding on whether to rent or use serviced apartments will depend greatly on your own personal circumstances. It is important to consider all factors to make the right decision.
Welcome to Motivational’s. This is Elliot Grant, fitness fanatic, and your go to advisor and blog post writer, putting your fitness first.