The Serviced Accommodation Property Podcast

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.

In this episode, Kevin shares a live mentoring call with Sam who is relatively new to serviced accommodation. He began in May and currently has 4 units in the Leicestershire area,

3 of the properties were Buy to Let converted to SA and he has now taken on a fourth property, a rent to SA to develop his business further.

Sam is an avid listener to the Serviced Accommodation Podcast and has been successful in his venture to date implementing strategies and advice from the series.

Kevin answers Sam’s specific questions and shares his SA expertise in this podcast which is inspiring for anyone who is thinking about getting started in serviced accommodation.

KEY TAKEAWAYS

Location

• In the summer months, there is always more demand and occupancy is higher due to tourism and family travel.
• Serviced accommodation should be located where there is demand in the winter. This means having serviced accommodation where there is construction and businesses meaning there will be contractors and working people in need of accommodation. 

Channel managers

• If you have more than one property you should have a channel manager
• With a channel manager, there is no risk of double bookings and it will help you to organise your calendar
• With rent to Sa once you move beyond the fixed term rental period the landlord or owner could give you 2 month’s notice so only having a calendar open for 2 months in advance and then repeatedly moving it is the best way forward. 

Scaling up

• Properties that are geographically close allow you to effectively maintain cleaning and meet and greet and maintenance with a single team.
• When you scale up and have properties across the country you will need to organise multiple teams to maintain the service level.

Rent to  SA or SA management

• For SA management there is a higher level of responsibility involved when taking someone’s property and managing it as SA.
• When you undertake rent to SA you are fulfilling your part of the contract with the owner by paying a set rent it’s easy for the owner. 

The year

• There are area-specific variables but typically January and February are the quietest months followed by increased demand in the following months through to September when it begins to drop off.  Businesses and trade support demand over the winter months for SA.
• If you get your price point at the right level then at least 50% of your bookings will be within 2 weeks of check-in

Reviews

• Lots of people will not book unless they can see the reviews and an average review score.
• If you are using 1-night stays as a way to get reviews quickly on new SA ensure you vet the guests by being there to meet and greet
• You can lower your price to get bookings in quickly then increase your price when you have enough reviews to qualify for a review score.

BEST MOMENTS

‘If you choose an area with 70,000 plus thebe there will be the demand’

 ‘If you have 100% occupancy then you are too cheap’

‘You need reliable trades in the team in order to be able to manage remotely’

‘Don’t scale too quickly in an area of lower population’

‘You are more likely to get bookings if people can see your reviews and average review score as long as they are decent’

VALUABLE RESOURCES

The Serviced Accommodation Property Podcast

https://propertysoldier.co.uk/

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years.

CONTACT METHOD

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

[email protected]

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.

If you want a block management perspective for serviced accommodations, then this episode is for you! Today on the Serviced Accommodation Property Podcast, Desmond Moira, the Managing Director at Rynew Services, a company that focuses on block management.  

Most people think they can DIY their way to SA. Desmond highlights the importance of having knowledge and being trained before diving into serviced accommodations. Treat the leases as your own bible when dealing with rent to SAs. There are more tips that Desmond will share, so tune in. 

KEY TAKEAWAYS 

• Desmond manages 16 developments across 1200 residential units. Aside from this, he also hosts his own podcast, More with Moreira: The Business Podcast. 
• To make sure that a property may be converted to serviced accommodations, make sure you’ve read and understood the lease. Not everyone can interpret them; If legal jargon isn’t your forte, find a professional who can help you with it. 
• When asking for the lease, it’s best not to tell your intentions beforehand. Most of the owners would refuse, even though it’s legally allowed. 
• If the lease allows it, then you won’t have any issues with the block management as long as what you do is according to their ordinance and you don’t bring any inconvenience to the neighborhood. 
• Desmond’s advice for those who want their own properties be converted to SA: Yes, rent to SA’s earn well, but always make sure it’s managed properly. 

BEST MOMENTS 

VALUABLE RESOURCES 

• More With Moreira: The Business Podcast | Apple | Spotify | Omny 

ABOUT THE GUEST 

Desmond Moreira is a leaseholder, RMC Director, and a Block Management Company Owner. He also hosts his own podcast which focuses on starting or improving their business. 

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 a 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 

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.

In this special episode, Kevin presents a fascinating seminar from Simon King of The Landlord’s Pension, who’s here to tell you how you can invest your pension in property at any age.

If you have a pension, like most of us that do, you’re probably fed up with seeing a sum of money which in some cases may be substantial, managed on your behalf in the stock market.  There is a huge myth that you cannot touch your pension until you’re over the age of 55.  In this presentation we will be dispelling this and several other myths that stop people from taking an interest in their pension today and investing it into property!

Investing your pension in property is not a new concept, it’s just that you’ve never been told about it before.  If you’ve ever paid into a pension or know someone that has, this seminar is not to be missed!

KEY TAKEAWAYS

• The main thing the Landlord’s Pension helps people with, is to take control of their money. Pension funds are your money, and is being invested on your behalf. 

• The Landlord’s Pension has an incredible success rate. 100% of their clients have increased their investments without fail, year on year.

• The reason that people seem to ignore their pensions, their largest lifetime investments, is lack of education on how they work.

• You can use existing or frozen pension funds when it comes to SSAS pensions. You can use business or personal contributions. You are limited to a maximum of £40,000 per year, or whatever you take as an income as your personal contribution.

• You can use 100% of your fund to buy commercial property with a SSAS pension scheme. It has to be what HMRC deem as commercial property.

• If the property you purchase with the pension fund raises in value, when it’s sold there’s no capital gain to pay as it’s owned by a pension fund. It’s tax free. The increase in value therefore is added to your pension.

• If you’re working with the right people, then investing your pension in property is not a difficult thing to do. As for costs, the fees are far lower than many people are paying in equity portfolios.

BEST MOMENTS

• ‘Whether you know it or not, your pension is an asset’
• ’SSAS pensions are a lot more flexible’
• ‘It’s a great way of boosting your pension and having security’
• ‘If you’re 35, and you’ve been paying into a pension for the last 15 years that isn’t doing much for you, why wait to take control of those funds and invest them in a way that you see fit?’
• ‘If you don’t like how things are, change it. You are not a tree’

VALUABLE RESOURCES

• The Serviced Accommodation Property Podcast
• The Landlord’s Pension - http://www.thelandlordspension.co.uk/

ABOUT THE GUEST

Simon King has been involved with the financial services industry for over 20 years, with experience in investment and pension consultancy in both national and international arenas.

Over the course of his career, he has become a respected and sought after speaker on using pensions to invest in property.

[email protected]

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

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.

Buying properties, specifically to be used for SA. Dispelling myths about the type of property people perceive as SA. 

In this episode, Kevin will open your eyes and help you to see things differently about the most profitable types of property to use for SA (it's not the type of property you may think!) 

He shares detailed examples from his own portfolio and explains exactly how to make the most profit from SA. 

KEY TAKEAWAYS 

• A buy, refurbish, refinance strategy on standard-properties provides a high return on investment.  
• Target more basic properties for SA based on the requirements of tradesmen working away on contracts.  

• Groups of tradesmen can come and stay with you for a fraction of the cost of staying in a hotel and your SA profit will be higher. 
• The purchase price of properties in ‘buy to let land’ is lower. People with money will not be buying in these locations and, as a result, prices are suppressed. 
• Tradesmen guests from out of town are concerned about travelling to and from the property and that it is a safe area. 
• You can target property in a part of town where most people do not desire to live. 
• These locations are typically on the outskirts of an area, that has a less than favourable reputation, this suppresses purchase prices so properties can be purchased cheaply.   

• Buy, refurbish, refinance and use as SA avoiding section 24 and claiming capital allowances. 
• Take advantage of the fact furnished holiday lets attract business rates - it is likely you will be able to claim small business rates relief and be exempt from any business rates payment. 
• Why not go straight to purchase to SA?  
• Buy it at a certain price, refurbish it, refinance it, pull all your money back out put a mortgage on the property and use it as Serviced Accommodation 
• There is so much more money you can make as a property investor using SA as your strategy. 

BEST MOMENTS 

 ‘What sort of property does the  trained buy to let investor look for? well it’s not fancy’  

‘Instantly cash flowing circa 1,000 pounds per month on these bog-standard terraced properties when used as serviced accommodation’  

‘It’s the sort of property where you go as cheap as you dare without going into the really rough part of town’ 

VALUABLE RESOURCES 

The Serviced Accommodation Property Podcast 

https://propertysoldier.co.uk/  

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years. 

CONTACT METHOD 

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

[email protected]  

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.

‘A bond is where 2 or more people put their money in for the purpose of investment’ 

In this episode, Kevin is live on stage with Ray McLennan serial entrepreneur and property investor. 

Ray shares the latest on a brand new offer ‘The Bond’ to be launched very soon. 

Ray has got the angel investors, a pool of people who ,via Ray, want to invest their money with those who’ve got deals so for vital information on how and why ‘The Bond’ is so important listen in to this informative episode, it could change your life. 

KEY TAKEAWAYS 

What are the challenges in raising finance? 

• Being self-employed 
• Timing 
• Confidence 

Why are banks going out of business? 

• Banks have in place lengthy and complex procedures that result in them; 
• Saying no to anything they are not familiar with. 
• Not understanding how delays impact on a project. 
• Seeking over securement. 

• Attempting to eliminate all risk 
• It can be challenging to speak to the decision-maker and getting a decision can be a frustratingly lengthy process. 

What is ‘The Bond’? 

• There are people looking to invest their money but pairing them with a suitable deal can take time. 
• Putting money into a bond means the money is available for investment and for the investor who begins to earn a return from day 1. 

• We are able to offer the speed and simplicity that business requires. 
• You must be a high net individual or sophisticated investor. 
• We will not be taking money from just anybody we will only be taking money from those who understand what the process is. 
• We have now created  3 bonds each with 6 million sterling based on the pledges already made prior to the bond being launched in September. 
• We plan the anticipated return for your bond will be 7.25%, a bond runs for 3 years and we plan to add up the profits at completion and pay pro-rata to those who put money into the bond, potentially resulting in 20-25% return. 

• This is harvesting the power of a network, a group of people who have the same aims. 

BEST MOMENTS 

‘The common denominator for angel investors is that they want to give back making a difference to others’   

‘Within the progressive community there are approximately 30,000 people or which 50% are active members’ 

 ‘This investment will be providing passive income’ 

‘We understand it, I’m building my own SA’ 

VALUABLE RESOURCES 

The Serviced Accommodation Property Podcast 

How to Make Money Podcast 

[email protected]  

[email protected]  

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years. 

CONTACT METHOD 

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

[email protected]  

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.

Kevin shares a live mentoring call with Matt who is starting out in Serviced accommodation. 

Matt asks about increasing the number of SA units, possibly on a rent to rent basis and how you stop getting shut down by letting agents. 

In this informative episode, Kevin explains exactly what to say and do when you are starting out in Serviced Accommodation. The detailed hints and tips in this episode are a must for anyone wanting to move into SA, listen in and benefit from Kevin’s expertise and experience in this area. 

Remember, if you would like the opportunity for a live mentoring call make sure to subscribe and follow Kevin on Social media.

KEY TAKEAWAYS 

How can you get deals from agents? 

• It’s all about using the right scripts for letting agents and for landlords,
• Prior to visiting the agent, approach local companies and give them examples of how they can save money using you rather than a hotel for employees and visitors. 
• Target a specific property, ask if the agent will do a company let, you are an accommodation company and will be using the property for your clients. 

What do I need to know when doing a deal? 

• It may be referred to as a company let agreement or common law tenancy, this is how you will be sourcing the property from the agent. 

• Your guests are not going to be staying on shorthold tenancy agreements they will be signing your terms and conditions and ‘right to rent’ checks will not apply. 
• If you already have SA units the agent can visit to see the standard if you have no units currently then you can collaborate with others and use their units to show agents. 
• This will build confidence that the properties will be kept in show home condition and becomes your USP. 

What type of bookings will be best? 

• In Blackpool it will be advantageous to have a minimum 3-night stay for property units – this is more profitable and will lessen the hen and stag do take up. 

• It will be seasonal, but the population is higher than 70K, resulting in high demand in the summer with high profit and in the winter breaking even. 
• Occupancy should be between 70-75% over the year, If you have 100% occupancy you are overly cheap. 
• You should disincentivise the short stays and encourage the longer stay bookings for the highest profit margins. 

BEST MOMENTS 

‘The appetite for deal packaging, rent to SA at the moment is awesome’ 

‘9 times out of 10 times the agent won't visit due to time restraints but the offer to visit makes them feel more at ease’ 

‘You are getting their buy-in for it to be advertised on booking.com and Airbnb’ 

‘When you go to the agent with that much volition and credibility it is much more powerful’ 

VALUABLE RESOURCES 

The Serviced Accommodation Property Podcast 

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years. 

CONTACT METHOD 

https://en-gb.facebook.com/propertysoldier/ 
[email protected]  

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.

‘There is plenty of work to be done in SA, but you can be leveraging and outsourcing’ 

In this fascinating episode with a live audience, Kevin introduces Ahmed Khan who shares how he has leveraged and put in place systems across his SA business enabling him to run it from his iPhone and laptop, wherever he is in the world. 

Many people believe that Serviced Accommodation offers the potential for great returns but is very time intensive, listen in and find out how systems can streamline your business optimising the experience for your guests and freeing up your time. 

KEY TAKEAWAYS 

• There are people coming in and going out on a daily basis if you have multiple SA units but there are a number of effective systems you can put in place to save time. 

How we can automate the processes? 

• A channel manager links all booking platforms and ensures that once a booking has been made that time slot is blocked for all other sites. The system will also notify the cleaner. 

Cleaning and laundry 

• You can effectively employ a cleaner whose responsibility includes the laundry and replenishing the items that are replaced for each new guest. 

Check-ins and checkouts 

• As soon as the booking is made and after checks, the channel manager will send the check-in instructions to the guest, 2 days prior to check out the system will send the checkout instructions. All of this is an automated sequence of instructions. 

Communication 

• If you group all the communications together it does not take a huge amount of time it’s because the messages are spread over time that you can feel you are always on your phone responding to a guest. 
• You can use the channel manager to answer frequently asked questions such as ‘What’s the Wi-Fi password?. If you have programmed in an answer the channel manager is able to respond to the guest’s query. 
• If you haven’t programmed in an answer the channel programmer will text you and you can respond via text with the answer. This answer is then added to the system and can be used if the question is raised again. 

Enquiries 

• Airbnb ideally wants an instant response to any enquiries and displays the response times. To move up in the rankings quick responses are important. If you have the system plugged in it will automatically respond to any enquiry within 10 minutes helping to optimise your listing and providing good customer service. 

Maintenance 

• The channel manager is able to recognise communication from a guest concerning a maintenance issue and if you have a maintenance person on the system it will direct the message to them. 

Payment and deposits 

• Payments are taken as soon as the booking is made, and the system also puts the amount for the security deposit on authorised hold providing you with the option to take it if required. 

Reviews 

• The system can request reviews from guests on checkout. The system can also select a review of the guest from those you have entered into the system as templates. 
• This optimises your position with Airbnb and ensures your guests are receiving a prompt review from you. 
• The sequence and messages are the same for every guest creating a fully automated system for all guests 
• Once you have the system set up in runs in exactly the same way for every unit. 

• It’s about getting the combination of systems that allow you to do things in the most streamlined way. 

BEST MOMENTS 

‘It’s all about saving a few minutes here and a few minutes there, they all add up’ 

‘There are multiple stages in a guest’s journey’ 

‘All those tiny things that have to be done every time’ 

‘I’m all about how we save as much time as possible today’ 

‘The sequence and messages are the same for every guest creating a fully automated system for all guests’ 

VALUABLE RESOURCES 

The Serviced Accommodation Property Podcast 

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years. 

CONTACT METHOD 

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

[email protected]   

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.

Michael Primrose, “The Property Finance Guy”, arranges funding and finance for serviced accommodation and other types of property investment.

Michael started off as a conveyancer focussing on residential purchases but became disillusioned with the monotony and took the leap into finance. 

In this special interview, Kevin talks to Michael about his methodology, his approach to investment, the importance of building a successful power team, and some of the tools he utilises to grow his business and portfolio.

KEY TAKEAWAYS

• One of the most powerful tools for potential property investors is development finance, which allows you to borrow towards the buying cost and the build cost. 

• Being a younger business owner, and having not come from the same background as many established investors, Michael has a different perspective on property investment. This unique perspective allows him to look at prospective deals in more creative ways.

• People are more often than not of the belief that serviced accommodation is a house that’s let out by the room. But in Kevin’s opinion, utilising a property this way makes for an increase and over complication of your workload. Also, SA does not necessarily mean by-the-room. In fact, renting out a whole house to visiting work men or business people can be less work and more financially lucrative.

• Private investors are a good route to go if you’re looking to establish a Rent-To-SA deal, but they can be difficult to find. Alternatively, Richard recommends equity crowdfunding, which is essentially offering the same deal to lots of different people in a FCA compliant way. The easiest way of describing this method is that you are selling shares in your company for a fixed rate return for a specific amount of money.

• There is a huge shift in the market at the moment that allows less experienced investors to get into serviced accommodation. Interest rates are low and mortgage lenders are starting to understand serviced accommodation and HMOs as a business model. Michael also points out that serviced accommodation mortgages are easier to obtain in a personal name rather than a limited company. 

• Section 24 does not affect serviced accommodation income, therefore you can buy property for the purpose of using it as serviced accommodation in your own name and you will not be affected by Section 24. Make sure you have a good accountant, who  can offer invaluable advice on how to take best advantage of this.

BEST MOMENTS

VALUABLE RESOURCES

• The Serviced Accommodation Property Podcast
• Michael Primrose – Facebook
• Michael Primrose – Instagram
• The Property Finance Guy

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

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.

Shimon Rudich is the guest speaker in this special episode of the Serviced Accommodation Property Podcast. Shimon is a lawyer, solicitor, and a prolific property investor who specialises in multiple acquisition strategies and lease options in property investment. 

Shimon joins Kevin to talk about not just the best and most unexpected strategies he has used to acquire properties, but also the best way of making the most of them.  

KEY TAKEAWAYS 

• Lease Option - A lease option is the right, but not the obligation, to buy a property. This can be beneficial if the value of the property increases in the long term. It also means you can offer the vendor a much higher price for the property at the outset, which makes you a far more attractive proposition. 

• Lease options also mean that you need far less capital at the outset because you have only promised to buy within a certain timeframe. Therefore, as Shimon points out, you can acquire a property, spend a small amount of capital in refurbishing it, and then sell it on at a profit, with minimal initial outlay. 

• When you are converting a large house into flats, you need space, plus you need to keep the walls in place wherever possible. Through the “Slice And Dice” method of converting a large, older property from a single residence into four flats, Shimon increased his investment greatly, and by having the vision to do so, was able to recognise that offering his vendor asking price was a wise move, as the returns were going to be far greater in the long run. 

• There are always strategies to be used no matter what the property. Even a piece of unused land can be put to good use with the right thinking. As Shimon points out, if you aren’t making money from Property then the problem is you. There are numerous worthwhile investments out there. We simply need to find them. 

• Another strategy is to exchange contracts, with the promise to complete in the future. This is similar to a lease option but means you are committing to buy, instead of reserving the right to buy. If you refuse to buy during this period or pull out of the sale, you will only lose your deposit. 

• If you have only one strategy in acquiring properties, you will not get far. Each acquisition is an opportunity for creativity. Look for the unexpected. Analyse the deal from all angles and form your strategy based on the property’s individual strengths and merits 

BEST MOMENTS
‘If you don’t make money from property then the problem is you’ 

‘You will never learn enough. There is always something new you can learn’ 

‘What I pay for a property in the North, you guys pay for a pair of shoes in Kent’ 

‘Slice and dice doesn’t refer to Dominos Pizza!’ 

‘Have you ever seen someone win at Monopoly by selling?’

‘Six-digit profit is always better than five’

‘As long as you have the right attitude, there is often a solution’

‘If you only have one strategy for acquiring properties you’ll go nowhere’

‘Acquire as much knowledge as possible, use it, and make a lot of money’

VALUABLE RESOURCES
The Serviced Accommodation Property Podcast
MS-Law Solicitors

ABOUT THE GUEST
Shimon Rudich was born in Italy and has lived in the United Kingdom since 1994. Shimon studied Law at the University of Manchester and was admitted as a Solicitor in 2004. 

Shimon has shown a natural flair for Law since his days as a student where he became involved in a successful case attracting national press. Shimon is a knowledgeable and respected property professional with a straight-talking can-do approach. Shimon attends various property events around the UK and lectures on various matters to educate property investors and peers. Shimon is often a keynote speaker and is sought out as the leading legal voice with a local, national and international client base. Shimon is adept in creative strategies for landlords on matters from option agreements to commercial contracts, to the buying and selling of residential or commercial property. 

Contact Shimon at [email protected]

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/
[email protected]

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.

In this episode, there is an opportunity to hear Kevin speaking with Sharon, a mentee, about the ways into Serviced Accommodation and the significant incentives available.

Kevin shares his extensive expertise and experience and there is vital advice and information for anyone who is considering or beginning their journey in Serviced Accommodation.

Listen in now to benefit from Kevin’s detailed understanding of this area of property investment.

KEY TAKEAWAYS

• I am 2 years into my property journey with 5 properties designated as ‘buy to lets’ currently, how do I go forward with Serviced Accommodation?

‘Buy to let’ is a successful strategy but as properties change tenants it is a good opportunity to try with SA dependent on the location of the property.

If there are hotels and companies in the area this is a positive indicator that SA will be successful.

Smaller 2-bed terraced properties are particularly suitable for contractors working in the area. It is possible to accommodate 5 individuals in a terraced property with twin beds and use of the lounge.

Tradesman are looking for cost economy when contracted to work away from home.

You can make a significantly larger amount from the property as SA rather than as a buy to let.

Tradesmen will initially book through air Bnb. This platform only allows a maximum of 30 days so arranging longer stays directly with the tradesman enables you to offer a discount to the customer and to make a saving on fees for advertising.

• There is a mortgage on the property, do we have to get permission or change the mortgage?

You will need to switch the mortgage product or gain permission from the current provider. If the property was purchased with a buy to let mortgage recently it can be more challenging.

A broker will offer advice on the best way to move forward. Currently, the rates are very competitive with some lenders now offering ‘buy to let’ and Serviced Accommodation hybrid products.

• Do the council tax and insurance change on SA property?

Council Tax

Property being used as SA will be liable for either council tax or business rates. Once your property has qualified as SA you are eligible to move to business rates. The Value Office Agency will assess your property for business rates.

You can then apply for small business rates relief which can provide up to 12,000 per year full relief. This can result in a situation where you are not making any payment.

It’s the owning entity that qualifies for the small business rates relief.

Insurance

If you are using a property as serviced accommodation you need to speak to an insurance broker. This should be a broker who is able to offer and arrange short term holiday let insurance. Buy to let insurance does not cover you.

Setting up an operating company

If you are undertaking SA you should set up an operating company. A new limited company through which everything will be funnelled.

Your operating company will run your serviced accommodation.

When you have a limited company you have insurance for the holiday let property and you also need limited liability insurance for the limited company. The operating company should not own any assets so that any claims are made on the insurance.

• What do I need to do to  rent a property for SA?

Your operating company can be used to do a rent to SA and it is vital to understand that you are using the property for your guests who have a primary residence elsewhere, they are not tenants.

If properties are in your own name and used as ‘buy to let’ or HMO you will be affected by section 24. If you use the same properties for SA then section 24 does not apply.

You can offset all of the mortgage interest against the SA income whereas with buy to let and HMO’s Section 24 means you can not.

You can also qualify for capital allowances in serviced accommodation and that typically means 35% of the purchase and refurbishment cost of the property can be reclaimed as a capital allowance.

There are currently significant incentives for people to do SA instead of  ‘buy to let’.

BEST MOMENTS

‘It’s no money down property investment’

‘You should take advantage of small business rates relief’

‘It blows my mind that this is possible’

‘It’s genuinely a win, win situation’

‘Tradesman are looking for cost economy when contracted away’

‘The way you ask is important, you need to phrase it as requesting permission to do furnished holiday lets’

VALUABLE RESOURCES

The Serviced Accommodation Property Podcast

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 for 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 most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years.

CONTACT METHOD

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

[email protected]