£100 a night on a £750 rental? Probably 15 nights a month? Leaves you £750. Council tax on a band B, £150? Up to £200 in heating/electric/water/tv license. £50 a month minimum for a broadband and TV package. Total of £5000-10000 for furniture/electricals probably split over the 5 years? I am starting to lose net profitability? Then you've got to get someone to clean it? Change sheets? Top up the coffee and shower gel? Then if the door jams or the keys get lost? Or someone steps on a water pipe? Where would insurance and cost of that come in? Just seems a total minefield? What is the cost of even getting customers to stay?
So many great videos Saj! thank you to both you and Sam for the Quality content on this one!! To say the very least Saj the time and effort you have spent making these videos shows and definitely isn't unnoticed, i appreciate and value your commitment to spreading awareness :D been a pleasure to watch and take notes, a pleasure as always! Kind regards, Luis Prew
Trouble is if renting a flat for serviced accommodation. You have to charge about £100 a night just to cover bulk of your costs. That's before making any money. It simply isn't viable unless you own somewhere outright. It would be near impossible to get 30 bookings a month. The initial investment in furniture alone is massive and hard to get back quickly. And with you not owning the place, that could end up being tricky. You are basically improving something that isn't yours. While paying off someone else's mortgage. And taking all the risk. Imagine even having 16 nights booked each month. Sometimes odd days and weekends. Changing the sheets, cleaning. People losing keys or whole heap of problems? Where would most stand on planning permission? Business rates and their mortgage? Seems too good to be true? Looking at my local Travelodge this evening it's less than £35 tonight. There is a pizza place and couple of other take aways downstairs and you are right in town. Especially as things get tight. Companies won't rent flats for staff. They'll put people in twin rooms on a Monday night till Friday morning
Hi Saj, I’ve already got a number of single lets in Reading and have just got approval for my first serviced building. It’s 9 units in total, a mix of one and 2 beds close to central Reading, RG1 2QP. I have zero experience in this area and would prefer someone to manage the building. Any ideas where to find a suitable management company?
Thank you Saj. Now I have a better understanding to get into service accommodations. After the lockdown I started a bnb. Getting different guests everyday and yeah it's the cleaning services that got me mad. So to think better it's always good to have guests staying a bit longer. Need to learn more
I run a small mentoring programme with 3 levels, depending on your experience. It is not for everybody and is application based. You can get more details and the application form here www.sajhussain.com/let-me-mentor-you/
Your cleaners are key to a successful operation, ask for recommendations in the local area. It's worth having at least 2 that you can call upon in case one is unable to clean for whatever reason. You can either buy or hire the linen or towels.
Hi Saj.. I am interested in starting in the property business.. I'm from Coventry Not sure at the moment whether to just buy a flat etc to rent out or find out more about serviced property.. Need some advice! Thanks for this informative video.. Naheed
Great video but how are you getting permission to do SA in a modern flat when most developers / sales agents ensure there is a clause to ban holiday lettings?
There are ways round this, i will not disclose all of them but many people have serviced accommodations in greater london running all year round, 1 of which is changing property use from c3 to c1, what i will say is look at the way its worded very carefully! If youre smart youll figure it out..
