Mastering Serviced Accommodation: A Head-to-Head Comparison of Self-Management versus Professional Management

Owning and managing a serviced accommodation property presents property owners with a pivotal decision: do you self-manage or enlist the services of a professional management company? Each approach has pros and cons, and understanding these factors is crucial in helping you make an informed choice that aligns with your goals, vision and circumstances.

Self-Management Pros:

Full Control

Self-management provides you with complete control over every aspect of the property, allowing for personalised decision-making and a unique guest experience.

No Fees to Pay

The absence of management fees allows you to reduce your monthly variable costs.

Choice of Suppliers

Property owners can handpick suppliers according to their preferences, ensuring a personally tailored service for their guests.

Creative Freedom

The ability to dress and stage properties as desired allows for a personalised touch.

Developing New Skills

Self-management offers an opportunity to learn new skills, from property maintenance to pricing and marketing strategies.

End-to-End Processes

You have the chance to implement your own end-to-end processes, fostering a unique operational approach.

Marketing Autonomy

You can devise and implement your very own marketing strategy.

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Self-Management Cons:

Complexity

Self-managing is more complex than most people anticipate and demands a comprehensive understanding of the industry.

Time-Consuming

The extensive time commitment required for day-to-day operations can be overwhelming.

Total Responsibility

As an owner, you bear total responsibility for the success and failure of the venture.

Limited Delegation

The absence of a support team can make it challenging to delegate tasks and in the worst cases can lead to potential burnout.

Regulatory Challenges

Staying up to date with regulations, legislation, and taxation is imperative and time-consuming.

Skills Gap

A lack of requisite skills can lead to costly errors in management and decision-making.

Marketing Challenges

Developing effective marketing strategies can be challenging without industry experience.

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Professional Management Pros:

Delegation to Professionals

You can delegate tasks to full-time professionals, reducing the burden of day-to-day operations.

Trusted Supplier Network

A good management company will have a network of trusted suppliers to ensure the best possible experience for your guests.

Performance Enhancement

Well-managed properties may experience stronger performance, better reviews, and increased profitability.

Industry and Local Knowledge

Professional management companies will bring industry-specific and local knowledge to the table, optimising property performance.

Objective Decision-Making

Management companies are not emotionally invested, enabling more objective decision-making.

Network

Accessing a management company's network can lead to increased bookings and marketing opportunities.

Workload Reduction

Enlisting professional management reduces your work, relieving some of the stresses of being a landlord.

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Professional Management Cons:

Choosing the Right Company

Selecting the right management company is crucial and requires careful consideration. Don’t assume all companies will offer them the same services or have the same level of experience and expertise.

Dependency on Suppliers

Your success in part, relies on the management company having good relationships with reliable suppliers.

Management Fees

You will need to be prepared to pay management fees which can impact overall profitability.

Accountability and Performance

If your property underperforms, the management company is not responsible for covering mortgage or bill payments so they must be motivated and incentivised to succeed and also accountable.

In Summary

Deciding between self-management and professional management for serviced accommodation units is a highly personal choice. Both approaches offer unique advantages and challenges. For those with limited time or motivation, professional management may be a wiser choice. However, self-management presents an invaluable opportunity to understand the market, the sector, guest behaviours and the property itself. Regardless of your chosen path, strict due diligence and expert advice are essential for success in the competitive landscape of serviced accommodations.

Please visit www.selectandstay.co.uk  for more information about the Services we offer to our landlord clients. We also run regular fortnightly webinars on Thursdays at 1pm and 7pm where we talk with Landlords about how we may be able to help them.