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Welcome to another episode of Service to Accommodation Podcast! So, in today’s episode, Kevin discusses the acquisition strategy of managing others’ properties as serviced accommodation. Discover what types of management you can choose from before deciding on an SA. Also learn about the purchase funding, lease options, commercial conversions among others.

If you’re done listening to this episode, you can also check out the previous episode for the first strategy Kevin discussed: Rent to SA!

KEY TAKEAWAYS

• Fees are a percentage of revenue. All the bookings that are coming in for the property, you will charge the owner a fee.
  • For full management, 15-20% to manage the property.
  • Also, maintenance, laundry, cleaning fee is deducted from the revenue.
  • All costs are paid by owner.
  • The owner could get less money than they would if they do let property as buy-to-let.
• Full Management. Taking bookings, payments, and guests. Advertising. Prepping the properties. Maintenance. Scheduling.
• Cloud-based management/ bookings-only management. You’re just using your system to manage other’s properties. Taking bookings and payments. Advertising.
• If you own buy-to-let’s already, you can convert them to serviced accommodation.
  • Do due diligence first.
  • Consider strategy. do you send notice to your current tenants?
• You can buy property to do serviced accommodation.
  • Refurbish and refinance.
  • Ongoing maintenance.
• What’s the exit strategy? Though Kevin firmly believes that serviced accommodation is not going anywhere, if it does not work, you could opt to sell.
• Purchase funding. You can use commercial finance. It is the preferred way of funding. There’s also bridging finance though it’s much more expensive. You can use that until you get enough credibility. Or you can use your own money.
• For different pension funds, you need to seek IFA advice. You can get SSAS or SIPP.
• Lease purchase options. Take control of a property and get a solicitor to draw a lease purchase option for you.
• Commercial conversions. You can purchase a commercial building to convert to SA. If already converted and used for buy to let, the developer cannot claim their capital allowances. If retained, hundreds of thousands of capital allowances can be claimed.
• Straight lease. Contact commercial surveyor and ask a short lease so it will be cheaper.

BEST MOMENTS

• “Focus on the ones that do work.”
• “Serviced accommodation is the best income-generating strategy today for somebody’s portfolio.”

VALUABLE RESOURCES

• com
• Airbnb

ABOUT THE HOST

Kevin Poneskis, also known as the Property Soldier, has been a full-time property investor and mentor since 2011. This happened after he served the army for 24 years. He spent the majority of these years in the 29 Commando Regiment RA and finished his time in the army as a Regimental Sergeant Major. Even during his time in the army, Kevin was already building his property portfolio and educating himself everything about real estate investments.

Right now, he is writing his book Property Soldier, in which 100% of the profit from the book will go to homeless veterans, and hosting The Serviced Accommodation Podcast which educates people who want to explore and earn from serviced accommodation property investing.

CONTACT METHOD

• Kevin’s Facebook
• Kevin’s LinkedIn