Serviced apartments are run as part of a hotel-style letting pool, so many lenders treat them as specialised security with lower lending limits, and some will not lend on them at all.
Yes, from a limited number of lenders, usually at lower loan-to-value ratios: a serviced apartment is run as short-stay accommodation under a management lease that limits how you can use it, so many lenders treat it as specialist security.
Loans are available from a smaller group of lenders and on tighter terms: a lower lending ratio, so usually more than a 20 per cent deposit, and stricter minimum sizes. Lenders are cautious because a serviced apartment’s value and income depend on its operator and management agreement, not only on the unit itself.
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A short-stay rental you manage yourself, or through an agent you choose, is usually an ordinary residential property, and lenders assess it on the rent a standard lease would achieve. See short-stay rental property loans.
A serviced apartment is different because it is bound to an operator’s letting pool and often to rules about owner use.
Lenders that accept serviced apartments generally count only part of the net income after management fees, and some use a conservative rental estimate instead. Income from a hotel pool can vary from year to year, so test the repayments on a lower figure.
The calculator on this page shows the gap between the repayments and the rent a lender might count.
Yes, from a smaller group of lenders, usually with a larger deposit than for a standard apartment. Some lenders exclude serviced apartments entirely, so which lender you approach matters.
Generally more than the 20 per cent common for standard investment apartments, because lenders that accept them lend a smaller share of the value. The figure depends on the lender, the size and the management arrangement.
It depends on the management agreement. Many limit owner use to a set number of nights, and some do not allow owners to live in the unit, which is one reason lenders treat them as investment property.
Not quite. Many are strata-titled apartments on their own title, let through an operator. Some hotel-style units are much smaller and closer to a hotel room, which narrows the lender options further.
Yes, and often more strictly. Lenders set minimum internal areas for apartments, and many small serviced units fall below them. See small apartment home loans.
Comparing a standard apartment? Our guide to apartment home loans covers strata, size and postcode rules.
Charles can check which lenders accept the building and its management agreement, the deposit they would want, and how the income would be counted.
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General information only, not credit, tax or financial advice. Lender policies on serviced apartments, minimum sizes and management agreements vary and change over time. Rental returns from letting pools are not guaranteed.
