Register your interest in Serviced Accommodation Discovery Day here, and a member of our team will get back to you to confirm your place at your preferred date.

 

 

One of Kevin’s many followers has asked an interesting question: A single let property they own is about to become vacant again. Should they consider using it as service accommodation, and what are the main points to consider if they do so? 

The answer isn’t as clear as many might think, but with Kevin’s help you can steer your way through the correct path, and hopefully get your serviced accommodation up and running in no time!   
 
KEY TAKEAWAYS

• Make sure you have permission from your lender. You may not have the right mortgage, but bear in mind that there are many SA products available now. Speak to your broker first and foremost. 
• Remember that you can’t be black-listed by a lender simply for having a conversation. Black-listing only happens if you default, so by all means begin a dialogue with your lender. As long as you’re paying the bills, you have nothing to fear. 
• Check the demand for serviced accommodation in your area - The general rule is that if the population of your town/city is over 70,000 then there will be some demand. Are there many hotels in the area? If the answer is yes, then it’s likely they’ve already done the research for you, and decided that the area has a need. 
• If you’re getting the property back from a tenant, it’s highly likely that the furnishings in the house will need replacing, so prepare for the cost of that. 
• Any expenses incurred through refurbishing your property can claim back as a capital allowance, or at least be offset against your tax using capital allowance. 
• Professional photos of the property are a must! Make your property look as attractive as possible. And use a professional, as they’ll know exactly how to make your property look its best. 
• Make sure you’re listed on Airbnb and Booking.com and endeavour to get that average rating up, as it’ll attract more people to your listing. Remember that the more sites you’re listed on, the longer it’ll take for your average review ratings to climb. 
• If you’re going to list on numerous sites, make sure you get a channel manager. They’ll make sure you don’t get double-bookings, which can happen far more often than you think. 
• You need the right insurance for your property. Talk to a broker who has experience in SA, short-term lets, or furnished holiday lets. Buy-to-let insurance is not the right product, so be aware. 
• The best way of operating your SA is to do so through a limited company. They’re easy to set up, and you’ll be far more protected, especially if you have your own set of terms and conditions for each of your bookings.  
• You can avoid Section 24 by moving your property into serviced accommodation, and then you can claim capital allowances. Use a specialist for this, and not your accountant. A proper surveyor will be much more thorough and save you far more money.

BEST MOMENTS

• ‘Please don’t say “Can I do serviced accommodation” because the answer is likely to be no!’ 
• ‘It’s likely that you’re going to have to give that property a bit of a buff and a fluff’ 
• ‘You’ve got to stage the property and dress it accordingly’ 
• ‘Good photos are definitely going to make you a lot more money’ 
• ‘Don’t try and do serviced accommodation on the cheap’ 

VALUABLE RESOURCES

• The Serviced Accommodation Property Podcast
• List your property on the Booking website - join.booking.com
• List your property on Airbnb - https://www.airbnb.co.uk/host/homes?_set_bev_on_new_domain=1498640434_MhzeKoJJtDSMcBf1

ABOUT THE HOST

Your host, Kevin Poneskis, enjoys public speaking, travelling, exercising and keeping fit. He also enjoys working with a charity called STOLL, which provides accommodation and training to homeless veterans.

Kevin was in the British Army serving 24 years, mostly in a commando unit, and retired at the rank of Regimental Sergeant Major. He left the Army in 2011 and became a full-time property investor. During his Army career, Kevin was investing in property and has now been a property investor for 27 years.

CONTACT METHOD 

https://en-gb.facebook.com/propertysoldier/