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In this episode of the Serviced Accommodation Property Podcast, Kevin guides you on how to set yourself up as a SA company. You have to be competent enough to you earn more money with serviced accommodation properties. Kevin discusses the step-by-step process that you need to do if you want to do the shift. He also touches on how much should you charge with management fees and how you should ready yourself with Section 24. Be in the know, ready yourself, and create win-win situations if you want to be a SA Management.

KEY TAKEAWAYS

• What is Serviced Accommodation Management? It’s similar to buy-to-let property management; the SA company gets the property from the landlord and then uses it as serviced accommodations. The landlord and the agent sign an agreement for legal and management purposes.
• SA Management charges a percentage of turnover, and typically, 15-20% is allotted for full management. That fee is what serves as their profit.
  • The SA management is also in charge of the payment for the cleaning, meet-and-greet, and any maintenance.
  • They are also in charge of the fees that posting in booking websites will incur.
• SA properties earn more during the summer months.

How do you get yourself competent enough to set up a SA Management?

• Do your due diligence on what works and what doesn’t for your SA.
• Rent-to-SA – Setup a limited company to operate it.
  • Negotiate the rent and deposits.
  • Prepare property insurance.
  • Get your photos done by a professional o you get more money.
  • Don’t go across all the OTA sites before you get a high average score on one know OTA website (i.e. Airbnb).
  • Get your own website so you can list all the properties you manage. If you can make direct bookings, then you’ll gain more profit.
  • Ready your own payment merchant account.
  • Consult and compare channel managers available so you could choose the best one for you.
• Rent-to-SA by landlords
  • All management agreements should have a break clause in place.
  • Explain to the landlord that you are going to be the tenant.
• Buy-to-let conversions
  • The property might need refurnishing or upgrading.

BEST MOMENTS

• “Target your guest avatar accordingly. No matter where you are in the summer, there’s more demand for serviced accommodation because you have holidaymakers and families and friends visiting your town and city.”
• “It all went wrong because the SA management company should have a good look at whether the property would work as a serviced accommodation in the first place.”
• “You get more from letting agents if you’ll be there best tenant.”

VALUABLE RESOURCES

• The Serviced Accommodation Property Podcast: Section 24, The Anti-Landlord Tax Explained | Omny | iTunes

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 majority of this 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 Property Podcast which educates people who want to explore and earn from serviced accommodation property investing.

CONTACT METHOD

• Kevin’s Facebook
• Kevin’s LinkedIn