Service
Accommodation
What is a Service Accommodation?
Growing Demand
A growing business for a custom client to rent on a nightly basis with potentially good returns. This type of business doesn't suit all and maybe a lot of effort to maintain than your traditional Buy To Let (ASTs) and finding a lender who will mortgage a SA.
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Lucrative Vs Benefits
Service Accommodation can be very lucrative for you and offers more benefits to a customer or maybe a corporate company wishing to reduce hotel costs particularly if you have access to a Gym, Pool, Hydro Therapy Spa, Cinema Room, or Beach Clubhouse to name a few, or maybe next to a Premiership Football Club.
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How to get customers/clients
The most common places to find SAs, would be Airbnb or Booking.com. If you have a number of SAs visit 'SilverDoor'. Their costs do differ and may be able to increase your profit margins, better qualify clients, and longer terms.
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Head Hunting
Finding customers shouldn't be too difficult. Check out the local hotel's car park in mid-week around the area you're interested in. There'll be contractor's vans with their trading names and contact details.
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Your Nightly Cost Vs Hotel
As an example, If a hotel charges 3 visitors £80.00 per night, and you have a 3-bedroom property available at the same price. Can you imagine saving corporate money, and having more stays?
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Added Bonus
You could charge corporate companies the same price as the hotel but offer them a 'Welcome Food Hamper' on arrival or any other incentive. It's your business. You decide.
Buy To Let Mortgage
OR
Commercial Lending
Buy To Let is not the way forward to carry out a SA. Check the Lease Agreement (lender may/will request it), and the Local Council.
We'll assess, help and guide you to reach your goals
RUNNING ​MONTHLY COSTS
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Mortgage Payments
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Management Fees approx 15-20%
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Insurance (have the right cover, Quote Now)
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Cleaning approx (allow 4hr Change over)​
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Replacing Broken/Stolen Items
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Percentage Occupancy Allowed
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Wifi
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Gas/Elec
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VAT (watch the threshold)
VOIDS
House Parties ¦ Brothels, or any other Illegal Activity.
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This could be voided or reduced by contacting the client before their arrival to explain the Terms & Conditions.
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PROACTING
How will you handle upon client arriving complaining of a smell, the pillow is too hard/soft, mattress is uncomfortable, neighbours complaining, or maybe a water leak? Hire someone who knows how to handle these situations.
Costs, Voids & Proacting
FAQs
Service Accomodation
Is location key for 'Service Accommodation'?
In a nutshell, Yes. But make sure you carry out enough research in your chosen areas.
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Is my standard conventional mortgage or a Buy To Let mortgage be ok to use as a SA?
No. You would be in breach of contract and serious consequences may/will occur with your current lender.​
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What sort of mortgage will I need for a SA?
Lenders prefer 'Commercial Loans'. We have over 30 providers to assist. All have their very own rules. Our broker will work on this with you.
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What sort of deposit will I need to have?
A deposit could be between 25-40%, each lender differs. Our broker will find out the best way forward.
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Can I manage the property on my own to reduce overheads?
Yes. If you are available at a drop of hat, then this could be for you. If not, please consider hiring experienced professionals.
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I already have a SA mortgage, can you help me find another deal?
Yes. We are fully qualified mortgage brokers. We always like our clients to Save or Make money.
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My Service Accommodation is Mortgage FREE, can you help to Release Equity?
Yes. We can help you. To find out more, book your appointment today.