Airbnb Blueprint

Rent to Rent Is Now Dead, But We Are Making More Money Doing This Instead!

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In this episode, Alex explains why a shift in the serviced accommodation industry has turned the rent-to-rent approach into a broken model. He explains why some SA trainers are not recognising this fact and are continuing to teach rent-to-rent, instead of the new approach he and Pooh are now offering.

The new model they are teaching enables people to make good money without investing a lot of money, dealing directly with guests, worrying about VAT, TOMS or competing in a saturated market. Alex shares an easy way for you to get started with this little-used business strategy.


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KEY TAKEAWAYS

  • The serviced accommodation market is saturated. Regardless of where you operate, there is more accommodation than there are guests.
  • The HMRC v Sonder TOMS VAT case means a loophole SA businesses have been able to use to avoid the 20% VAT liability on turnover is set to close.
  • If your rent-to-rent SA business is turning over £90k the TOMS VAT situation is a ticking time bomb.
  • Rising overheads, more competition, regulation and tax changes combined with fewer guests and lower per night prices are all combining to make rent-to-rent far more difficult.
  • It is possible to run a bookings management company from anywhere and it only takes a few months to start making a profit.
  • Now is the time to pivot and train to become a relocation agent. Currently, very few people are offering this highly sought-after service, so it is really easy to make money doing it.

    • BEST MOMENTS

    “The rent-to-rent model … is beginning to crack. It's not just bending at the edges; it’s breaking and it’s doing it fast.”

    “Everyone's trying to undercut everyone else, and it's turned into a race to the bottom.”
    “You're going to start to see people going from making a pretty decent margin to breaking even, or worse, losing money. ”
    “Our business is built on integrity. We don't just say what's popular, we say what's true in today's world, in today's market.”
    “You simply bring the two parties together, provide a high-level service, and take your cut.”
    “There's no need to panic. We just need to pivot.”

    EPISODE RESOURCES

    Sonder vs HMRC TOMS VAT case - https://pkf-francisclark.co.uk/insights/big-win-for-hmrc-in-the-upper-tribunal-of-sonder-europe-ltd-toms-vat-case


    LINKS

    FREE Airbnb Blueprint Coaching Community - https://www.facebook.com/groups/2342454789487705


    HOST BIOS

    Alex & Pooh have built a portfolio of over 16 Serviced Accommodation Units and 10 Buy-To-Lets collectively over the last 5 years. - 

    This AirBnB Business has allowed each of them to create their own tailor-made ‘lifestyle by design.’

    Pooh chose to escape the corporate life as an electrical engineer instead to spend his time at home with his young and growing family, and Alex likes to spend most of his time in sunny Spain enjoying his love for road cycling or even hiking in the Tramuntana mountain ranges.

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    Airbnb BlueprintBy Alex Mannock