SA and why it's my favourite

How would you like one property to replace your income?

Serviced Accommodation can financially change your world

How would you like the strategy you use to enable that income to be passive?

I never went into this strategy understanding it’s potential for pots of large revenue and I never really looked at how one would set it up to let it ‘roll’, I merely found and negotiated a great deal and did due diligence that gave results that suggested a guest house would work well.

What I didn’t know or consider (because it wasn’t being taught or shouted about) was how I was to set it up, so that it was conducive in every way to generating and maximising the revenue whilst minimising the costs.

The set up is crucial and having clarity (understanding every aspect of it), from acquiring a property to taking bookings is so important.  If done incorrectly it can cost a lot, create stress in bounds and see you walking from a frying pan into a fire.  

I had to learn as I went but it was later that I understood how more money would have been made if I’d understood certain elements of the set up.

What I love about this strategy is once set up correctly it is so very simple and is as hands off (without the need of a management company) as you want it to be.  Thus cutting costs and potential disappointment, mitigating risk where employees aren’t required and streamlining the business to pretty much run on its own.

When deciding to venture into any new strategy, not just serviced accommodation, you need to choose a strategy or an area. If someone has a keen interest in a certain strategy, then they must pick the optimal area where it will work well. Similarly, if someone has their heart set on investing in a certain place, they must choose a strategy that will be successful in that location. 

This strategy is largely taking over from hotels, it is what more people want.  It brings down costs, it simplifies the hospitality service, it gives guests more flexibility and as long as set up correctly and in the right location, generates fantastic revenue. 

So this is why I love this strategy, it irradicates long term tenant issues, it allows for the premises to be kept in the best of conditions with daily cleaners, and the bookings look after themselves.  And of course it will undoubtedly give you a phenomenal R.O.I (return on investment) and if you can acquire the asset with a purchase lease option you will find the R.O.I will blow your mind.  

This strategy can be FANTASTIC or a disaster and it’s imperative to learn why Clarity, Due diligence and Set up will determine which of the two it is.