Serviced Accommodation UK | How to PROFITABLY Invest in Serviced Accommodation


Hey, what’s up? Samuel Leeds here, and in
this video, I wanted to explain to you how you can profit from serviced accommodation
in property in the UK. So, what is serviced accommodation? Serviced
accommodation is basically a hotel. It’s when you rent out a property or a room, and you
rent it out just like a hotel. So it will be on Booking.com. When people search for
hotels in such-and-such an area, your property will come up as a hotel. How do you get into that business, and how
do you do that? Well, you can rent out a property as a hotel. You don’t need a licence. There’s
no legislations around it. You can literally, your house, that you live in, you could put
that, list it, as a hotel on Booking.com and all the different sites, which is kind of
incredible. Why is it incredible? It’s incredible because your house might rent out for £500
a month, £1,000 a month, £2,000 a month, whatever, that’s per month, but as a hotel,
your house might rent out £200, £300, £500 per night. Per night. So, it’s almost like HMOs, you can rent out
a property as a single let that you can make money, and you can be okay, and you have to
have quite a lot of houses to make good cashflow. That’s Option One. Option Two is HMOs where
you can buy a house, split it up, rent it out room-by-room with fixed tenants. But renting
it out as a hotel, jeez, surely that could be very profitable. And the answer is, yes
it can. And also many people are doing this in the UK. There are, of course, things to consider.
I don’t want you, tonight, to move out of your house and to put your house on Booking.com
and rent it out as a hotel, because there are things you need to consider, but when
you do the right market research … And I say there’s no legislation. There is no legislation
in the sense of your house will qualify. Even a HMO. Your HMO has to be certain room sizes,
you need to have fire doors, you need to have smoke alarms, you need to have a licence.
But with a serviced accommodation, i.e. a hotel, you don’t need a licence. Will that change? Maybe. What’s the case right
now? You can do it. Of course, there are things you need to look for. I’ve done a little video,
if you can just see above, the things that you need to make sure, rules-wise, in regards
to the mortgage and stuff that you need to look for. Now, how does this affect you right now? Well,
what it means is it just means that if you’ve got limited funds, let’s say you’ve got £50,000
or £20,000, it means that rather than buying a property to put a tenant in, it means that
you can buy a property, whether that be an apartment, a house, whatever, you can buy
a property with the sole purpose of renting this property out as a hotel. Which means
that instead of getting a 10% or even a 20% return on investment, you could be making
a 50%, you could be making 100%, or 200% return on investment. So, that’s the first thing, which is crazy,
incredible, ridiculous, great. The second thing is if you haven’t got any money, you
can do rent to serviced accommodation. You can still benefit from this by renting a property
off a landlord and then getting his permission to be able to use this as a serviced accommodation
property. Now, we’ve got properties in Birmingham, we’ve
got properties that were renting out for £700 a month, just apartments in Birmingham, and
now we’re renting them out as a hotel, we’re now getting £150 per night. So, we’ve quadrupled
our profit from this property by using serviced accommodation. Now, how on earth do you run it as a hotel?
Does that mean you need to employ a hotel manager? You need to have a chef in there?
You need to have a restaurant in there? Absolutely not. You may have been on the receiving end,
you may have been a customer into one of these properties, and here’s what happens. You have
no staff, you have just simply a key safe outside the property, so when the guest arrives
to check in, they’ll let themself in. This is all done systemized, automatically, so
you get the same kind of money as the hotels, but actually, you’re just an investor. Hotels probably hate this, probably the big
boy hotel chains probably hate people doing this, because we’re messing with their business,
but we’re getting the massive income, like hotels are, without having to own hotels,
without having to employ staff like hotels. This is a strategy for the little guy. We’ve
had people come to our Property Investors Crash Course who are refugees, who have no
money, who have bad credit, who haven’t even got a property portfolio. They’re just starting
out and they go straight into serviced accommodation, and they’re killing it. They’re killing it. So, this strategy is definitely something
that can be applied for the little guys as well as the big guys. The thing you need to
watch for is this is a business. This isn’t printing money. It’s not some magic wand,
and you wave the serviced accommodation wand over it, and everything suddenly becomes great
and you become wealthy. No. This is a business. So, you need to do your market research. You
need to make sure that if you’re taking on apartments, buying properties, if you’re trying
to rent your own property out like this, you need to make sure that the market is ripe
and ready for this, because it doesn’t work everywhere. It just works in certain areas. This can be a strategy that’s been used in
America. This has been used all over the world. In England, UK, Europe. But you need to do
your market research in an area. How do you do that? What I would suggest is find out
what the hotels are doing. You wouldn’t buy a hotel having done no market research. You
check the demand and then you buy the hotel, and in the same way, although you’re not going
to be losing as much money upfront than if you bought a hotel, for the little guy, just
doing a rent to rent, he’s only putting down £3,000 to control a property, but that’s
still £3,000. That’s a lot of money to some people. So, do your market research. Make
sure that it would work well and you would have guests there. Next, if you’re running a property as a serviced
accommodation, be a proud property owner, or landlord, or controller, or whatever. Make
sure that when your guests come in it is immaculate. It is mint. Make sure that you have cleaners
going in and out. Make sure that your systems work well. So, it’s very doable. It’s very possible.
But get the right training, get the right knowledge. So that’s a little bit of an overview
from me about serviced accommodation. I’m getting a lot of requests to talk about this.
I’m reluctant to talk about it, because I think that what’s happening is people are
doing it, because I’m talking about it, and because they see me doing it, but then they’re
doing it wrong, and then they’re giving people like me a bad rep. So just make sure you get
the training, just make sure you do it properly. But yes, you can get very, very wealthy, and
financially free very, very fast, by properly getting the right training and applying serviced
accommodation to your strategy. Hope that helped. Thank you so much for watching.
Do subscribe, share the video so that other people know what’s going on, enlighten them
as well, and hit the notification bell. I look forward to seeing you next time. Thank
you so much. Thank you so much for watching this video.
It’s Mentoring on a Monday every single week at 7 p.m. on a Monday, between 8 p.m., I’m
going to be live, answering all your comments and questions. Don’t forget to subscribe right
over here so you’ll never miss one of these videos. I’ll see you next week at 7 p.m. Also, if you haven’t got a copy of my book,
you need this in your life. You can get it from Amazon for £10.99 or a gift from me,
absolutely free, down below in the description link. I’ll see you next week, Monday at 7
p.m.

Paul Whisler

20 Comments

  1. hey samuel! Great viedo! Recommendation: Could you please make a video on what type of property to buy and the plan for uni students
    thanks

  2. And remember to have multiple exit strategies, i think in the near future legislations will be put in place, what exactly I'm unsure but it could affect people's initial plans

  3. Were doing it Samuel, photos done today and potential corporate bookings already for two high end 3 bed 2 bath apartments in Media City UK

  4. Sup sam im 14 and my dad is making me watch investment videos bc he says workin aint worth it

  5. Samuel, it's another great video for beginners, who don't know what SA is, but I would that to see a video where you search for a property and break down the numbers that make it a worthwhile deal. That would be hugely helpful.

  6. can you do a video on market research? i'm looking to do this in the US

  7. for hmo one needs 4 beds plus, is there any minimum rooms needed for SA? Im confused what are the minimum requirements for SA? Thanks in Advance

  8. Excellente ta vidéo !
    PS : Si toi aussi tu t'intéresses à la création d'entreprise, à la liberté financière ou au business en général, jette un oeil à ma chaîne, je vais y mettre tout ce que je sais, ainsi que mes résultats très prochainement 🙂

  9. What about SA being only seasonal? what about the risk of it not being rented out.

  10. These "refugees" are well educated and come from middle class background. People often forget that.

  11. Hello Samuel . Is it better to manage my SA myself or get a someone to manage it? Is it worth it to get it managed

  12. Are there such things as a service accommodation agent in the same way as a letting agent that manage it?

  13. A lot of work involved in service accomodation but the returns are worthwhile.

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