October 14, 2024

Building A Profitable Serviced Accommodation Portfolio

1 hour 4 minutes

In this episode of the Scottish Property Podcast, we sit down with Michael Paton, founder of MAP Short Stays, to explore his incredible journey from a challenging upbringing to becoming a successful property investor and short-term rental manager.

Michael shares his personal story, from his troubled youth and early brushes with the law to turning his life around and building a thriving property management business. Now managing properties across Scotland, Michael specialises in short-term rentals, particularly in the contractor market, and reveals the systems, processes, and strategies that have allowed him to scale his business successfully.

Episode Highlights:

Michael’s Early Life:

Michael shares his upbringing, where he moved around frequently with his mother, struggled in school, and was expelled twice before being sent to a residential school.

He reflects on how his rebellious youth, shaped by peer pressure and a lack of positive influence, eventually gave way to a sense of responsibility and a desire to build a better future for himself.

Turning Point and Career Shift:

After working for nearly 20 years in social care, including roles with at-risk youth and people with mental health challenges, Michael realised he wanted more flexibility to spend time with his family.

His first experience as an accidental landlord in 2014 sparked his interest in property, though the traditional buy-to-let model didn’t initially excite him. By 2021, he shifted focus to the short-term rental market, seeing an opportunity in holiday homes and caravans.

Building a Short-Term Rental Business:

Michael discusses how he scaled his short-term rental management business, starting with holiday caravans and lodges and growing into managing a portfolio of properties across Scotland.

He explains the importance of having strong systems and processes in place, from automated guest communication to efficient cleaning protocols and contractor management.

Challenges and Lessons Learned:

Michael reflects on the challenges of finding the right business partners and emphasises the importance of thorough due diligence before entering into any business relationship.

He also talks about the difficulties of scaling a business and the need for consistent hard work—working 16-18 hours a day, ensuring properties are managed to the highest standard.

The Contractor Market:

Michael has found a niche in managing short-term lets for contractors, offering long-term bookings and consistent income for landlords.

He breaks down how to manage contractor bookings, the key amenities contractors look for (e.g., parking and laundry facilities), and how to achieve high occupancy rates.

Managing Short-Term Let Licences:

With Scotland’s evolving legislation on short-term lets, Michael outlines the licensing process and how long it can take depending on the council area.

Revenue and Profitability:

Michael gives a realistic overview of the potential earnings in short-term lets, sharing that a well-managed three-bedroom property can generate around £4,000 a month in gross revenue. He stresses the importance of occupancy rates and setting realistic expectations for returns.

Tune in to hear Michael Paton’s inspiring story of transformation and learn practical strategies for scaling a successful short-term rental business in Scotland!

Follow Michael Paton on Instagram:

www.instagram.com/michaelpatonproperty/

Map Short Stays: www.mapshortstays.com/

Map Short Stays Instagram:

www.instagram.com/mapshortstays/

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By Nick Ponty and Steven Clark

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