What We Look for in a Property Before Converting to Serviced Accommodation

The key to successful serviced accommodation lies in choosing the right property. Not every property is suitable for short-term rentals—certain factors must align to ensure high occupancy, profitability, and long-term sustainability. At Noki Stays, we follow a proven checklist to identify properties with the potential to become thriving serviced accommodation units. Whether you’re a landlord, investor, or developer, this article will give you insight into what makes a property ideal for conversion—and how our expertise can help you spot the best opportunities.

1?? Location: The Foundation of Success

Location is the most crucial factor when selecting a property for serviced accommodation. Properties need to be easily accessible and situated near attractions, business hubs, or transport links to attract diverse guest segments, from tourists to corporate travelers.

Ideal Locations Include:

• City centers: Close to business districts, entertainment hubs, and transport terminals.
• Tourist destinations: Proximity to landmarks, beaches, or scenic spots.
• Corporate areas: Near offices or conference venues for long-stay business clients.

?? Checklist Tip: Look for areas with a blend of leisure and business activity ensures stable bookings throughout the year.

2?? Property Size and Layout: Optimising Guest Experience

The property’s size and layout determine how well it can be transformed into serviced accommodation. Guests prefer functional spaces with a homely feel, and the number of rooms should match the target guest profile—families, business travelers, or solo tourists.

What Works Best:

• Studios or 1-2 bedroom apartments: Ideal for city travelers and couples.
• Larger homes: Suitable for families, group stays, or relocations.
• Multiple-unit properties: Perfect for Aparthotels or portfolio expansion.

?? Checklist Tip: Properties with open-plan layouts or potential for reconfiguration are highly desirable, offering flexibility for kitchen and living areas to enhance guest comfort.

3?? Market Demand: Matching Supply to Demand

We conduct thorough market research to ensure there’s a demand for short-term rentals in the area. This helps us avoid oversaturated markets and focus on locations where demand is strong and occupancy rates remain high year-round.

How We Assess Demand:

• Analyse tourism data and upcoming events in the area.
• Look for corporate hubs that attract business travelers.
• Assess competition to determine if the market is underserved.

?? Checklist Tip: Use data tools like AirDNA to assess local occupancy rates, demand trends, and potential revenues before committing to a property.

4?? Financial Viability: Ensuring Strong Returns

A property’s profitability depends on dynamic pricing, operational costs, and the initial investment. Before acquiring a property, we conduct detailed financial projections to ensure it can generate strong returns and outperform traditional rentals.

Key Considerations:

• Purchase price vs. potential income: Calculate yield and ROI.
• Running costs: Factor in cleaning, maintenance, and management fees.
• Tax advantages: Consider potential savings from Furnished Holiday Let (FHL) status.

?? Checklist Tip: Look for properties with a balance between acquisition cost and earning potential to ensure profitability even during off-peak seasons.

5?? Regulatory Compliance and Planning Permissions

Some areas have local regulations restricting short-term rentals, so it’s essential to ensure the property complies with local laws before conversion. In certain cases, planning permission may be required to change the property’s use.

What to Check:

• Local rules governing short-term lets or serviced accommodation.
• Leasehold restrictions (if applicable).
• Potential need for change-of-use planning permissions.

?? Checklist Tip: We work with legal experts to navigate local regulations and secure necessary approvals, ensuring smooth operations from day one.

6?? Property Condition and Renovation Potential

The property’s condition is critical—both to control renovation costs and to meet guest expectations. A well-maintained property with minimal structural repairs required allows faster conversion and reduces upfront costs.

What We Look For:

• Sound structural condition with no major defects.
• Potential for modern upgrades to improve appeal and functionality.
• Space for modern amenities like high-speed Wi-Fi and self-check-in systems.

?? Checklist Tip: Properties that need cosmetic renovations (rather than structural repairs) offer the best balance between cost and appeal.

7?? Scalability: Planning for Future Growth

At Noki Stays, we also assess whether the property fits into a long-term portfolio strategy. Properties that can be expanded or scaled up—for example, through multi-unit conversions or corporate partnerships—are highly attractive.

Growth Opportunities Include:

• Converting larger spaces into Aparthotels.
• Building relationships with corporate clients and relocators.
• Expanding into nearby markets with similar guest profiles.

?? Checklist Tip: We look for properties that align with our long-term vision, ensuring consistent growth and profitability over time.

How Noki Stays Helps Investors Identify Promising Properties

Our team at Noki Stays uses a data-led, strategic approach to identify and acquire properties that meet these criteria. With our expertise in sourcing, designing, and managing serviced accommodation units, we guide investors through every step of the process—from due diligence to project launch.

What We Offer Investors:

• Market insights to help you find the right location and property.
• Feasibility studies to ensure financial viability and strong returns.
• Design and management expertise to optimise guest satisfaction and profitability.

Let’s Find Your Next Investment Property Together

The serviced accommodation market offers exciting opportunities for high yields and long-term growth—but only if you select the right property. At Noki Stays, we take the guesswork out of property selection, guiding you to opportunities that align with your financial goals and vision.

?? Ready to discover how to spot promising investment properties? Read more on this blog or connect with me to learn how we can partner on your next project.