The Serviced Accommodation Property Podcast Kevin Poneskis

This episode Kevin answers some of the most in demand questions that he’s being asked at the moment. This includes details on VAT, tax and what you can suggest to your landlord to keep them happy with what you’re doing. 

  

KEY TAKEAWAYS 
When a landlord is getting a fixed rent but the property is being used for serviced accommodation, they can avoid section 24. 
You’re probably safer off not mentioning to the landlord that they can avoid section 24 by doing rent to SA. 
Serviced accommodation management is where the operator charges a percentage to the owner. 
Promise the landlord to keep the property in show home condition, no voids or bad tenants. 
You need to be wary of what the VAT complications could be if you’re looking to do rent to SA. You could agree to do a certain amount of revenue so that you don’t go over the VAT threshold.  
You should speak to an accountant to give you proper advice. 

 

BEST MOMENTS 

‘There are many different names for rent to SA’ 

‘Wait for case law’ 

‘Be mindful of your own turnover’ 

 

VALUABLE RESOURCES 

The Serviced Accommodation Property Podcast 

https://propertysoldier.co.uk/ 

Simple Crowdfunding website 

  

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/ 

kevin@propertysoldier.co.uk  

In this episode, Kevin shares a chapter from his much-anticipated book, ‘Serviced Accommodation Success’ which is due out in March.

Kevin has created a process, the DEAL system, with end to end steps that can be followed by anyone who wants to know how to be successful in serviced accommodation.

Due diligence -  what type of property works is there demand in your area?

Explore - getting quotes, costs, and dealing with everything in your spreadsheet

Acquisition -  there are multiple acquisition strategies required

Logistics - the ongoing running of the SA property

If you want to create a business you must create a system that you and your team can follow and Kevin shares the details of due diligence for serviced accommodation in this fascinating podcast.

 

KEY TAKEAWAYS

D – Due Diligence
Area - where is your SA goldmine area? There are many factors to consider and you should aim to meet as many of the criteria as possible when choosing an area.
Find an area as near to where you live as possible.
Construction sites can provide all year-round demand and can be profitable over extended periods if the development is extensive.
Large businesses and organisations often have mobile workforces and can visit an area repeatedly.
An airport will provide high demand but this will probably be mostly one-night stays, so costs will be higher for you, the operator.
Operating Costs - The main operating costs for SA are cleaning and laundry. Guests staying for longer periods are much more profitable as you are only paying for 1 clean and laundry
You can offer discounts for longer stays and still make more profit than a number of short stays with the associated costs per stay. 
Venues - Sporting venues  also host other events such as music events so there is good potential for longer stays.
Tourist attractions such as historical attractions, areas of natural beauty as well as theme parks.
Hospitals – lots of scenarios where family and friends want to locate closer. Staff also undertake short term contracts.
Target market - Once you have established your SA demand area you will know your target market, the type of people who are likely to be using your SA and this will help you decide on the right type of property.
Everything from a one-bed apartment to a large mansion can be suitable it’s just a case of matching the type of guest with the property.

  

BEST MOMENTS

 ‘Make a list of the SA demand points in an area and choose the area’

‘You should always cater to demand if you want to make the most profit’ 

‘There isn’t a specific use class that fits all types of serviced accommodation’

‘The number of people at SA is the most likely reason neighbours will complain’

 

VALUABLE RESOURCES

The Serviced Accommodation Property Podcast

https://propertysoldier.co.uk/

Simple Crowdfunding website

 

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/

kevin@propertysoldier.co.uk

 

 

 

‘It’s about the power of the crowd, it’s getting that crowd to follow your brand’ 

In this episode, Davin Poonwassie from Simple Crowdfunding explains how you can crowdfund and get investors on board for your property business.

Simple Crowdfunding look at your project to make sure it’s viable, get all the information together to make sure it’s compliant and market alongside you to get it funded. 

You can crowd fund most things and you can effectively leverage a crowd funding platform that’s tried and tested and be compliant. Building your brand and being visible is key

and using a crowdfunding platform can make sure you are developing your brand and growing your crowd, listen in now and get started.

  

KEY TAKEAWAYS

Simple Crowdfunding allows you to communicate in a compliant way. You will be able to treat investors in the right way.

They can take ISA money and also allow pension money into raises.

Difference between peer to peer and equity

Equity is where the investors are getting a share of the project, they share the risk with you and you share the profit with them.

Equity is typically used at the top end of your capital stack.

Peer to peer is effectively loans, it’s a group of loans from a crowd of people. Lots of people putting in small amounts into your deal so you can set up your rent to SA.

Simple Crowdfunding offer peer to peer and equity which is are key aspects to consider when you are looking for a crowd funder.

A lot the changes in peer to peer were about how investors are categorised and how checks are undertaken to ensure they understand what they are doing.

Regulations came into force this month meaning that you can’t promote mini-bonds to retail investors.

There are 3 types of investors high net worth, sophisticated and retail.

This means you can’t market publicly because you don’t know who is seeing it.

Peer to peer doesn’t have this restriction, you can market your deal to the retail investor and build your brand.

Getting investors on board is easier than you think and Simple Crowdfunding can do that for you and after you have created the marketing will help you to make sure you are compliant.

Once people have been on-boarded properly you can tell the world, it will keep your investors informed and will build your crowd as others see it because building your brand, your crowd and visibility is key for your next investment.

 

BEST MOMENTS

‘You can leverage a crowdfunding platform that’s tried and tested and be compliant’

‘It matters because as you grow your business you will want different types of finance and will have built your brand through a platform’

‘Whatever you want to do – your brand is hugely important; people want to get to know who you are’

 

VALUABLE RESOURCES

The Serviced Accommodation Property Podcast

https://propertysoldier.co.uk/

Simple Crowdfunding website

 

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/

kevin@propertysoldier.co.uk

 

 

‘There is a strategy that just about everyone can get into’ 

In this episode, Kevin shares a mentee call where the questions focus on finding your goldmine area, the 90-day rule and whether Serviced Accommodation has to be a self-contained unit. If you are starting out identifying a viable area for your serviced accommodation is key for your business and Kevin shares some great advice on where to access data and information that will help you to make the right decision along with an in-depth look at the different classes serviced accommodation falls in to and what that means for the development of SA. This is a great listen with lots of value for anyone who is either looking to go into SA or is already on the journey. 

 

KEY TAKEAWAYS 

The goldmine area 
Everyone wants to know where their gold mine area is 
If the town has a population of over 70,000 then it will be viable for SA 
The hotel futures report provides the market research and detailed indicators for short term accommodation and this information and data is applicable to Serviced Accommodation 
Look for large businesses, universities, sports stadiums and building projects these all create demand for accommodation 

Does it have to be a self-contained unit? 
If you are planning to develop a whole apartment SA, the most appropriate class is C3. 
HMOs sit inside the housing act and are classed as C4 the people living there are not a family group or connected. 
To let a property to individuals as SA by the room you need C1 class which is moving towards guest houses. 
It can be dependant on how the council interprets the rules. 

The 90-day rule in London 
In a calendar year, you can do up to 90 days of short letting. 
The reality is only Airbnb is counting so if you are using other booking platforms you can exceed the 90 days. 
You can approach people and if a company books you for longer periods you will not be breaching the 90-day rule. 

 

BEST MOMENTS 

‘All these people need accommodating’ 

‘Currently, there isn’t anything that is an ’X’ marks the spot’ 

‘You don’t need to exceed the90 day rule if you are proactive and secure bookings direct’ 

 

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/ 

kevin@propertysoldier.co.uk  

‘Cleaners are one of the most important parts in our business, they are our eyes and ears as the people who are first into a property when guests leave’ 

In this hybrid episode, Khadija is interviewing Kevin about SA... And Kevin is interviewing Khadija about her cleaning business!

They discuss what’s important when you are starting out in Serviced Accommodation and the important role cleaning staff play in the operation of any Serviced Accommodation Business. 

This is a great podcast which offers an opportunity to see things from more than one perspective, listen in and enjoy. 

  

KEY TAKEAWAYS 

What if you are thinking of getting into SA? 

A lot of people do SA in the wrong way taking on extensive risk through the acquisition of a SA property, which is a challenge when further down the line they decide SA is not for them. 

People should get trained in SA before they get into SA because there are a lot of moving parts to consider. 

The DEALS model is an effective pathway for serviced accommodation 

D – due diligence 

E - explore 

A – acquisition a SA 

L – logistics 

S – Scrutinise 

People invest huge amounts of their money without understanding what they are doing 

You need to get some training and a mentor. Learn from a mentor’s mistakes rather than making those mistakes yourself. 

Rent to SA is a great way of getting into serviced accommodation it is a model that requires much less investment. 

Working with cleaning companies as a SA provider 

Whatever you think you will need the cleaning company to do should be discussed in detail 

 I have a fixed rate I don’t want to pay differing amounts based on the level of untidiness 

I prefer not to negotiate so working with a cleaning company who have experience of SA is helpful because they are able to establish an average time for a clean and know what working in the SA sector entails. 

Our cleaners are one of the most important parts in our business, they are our eyes and ears as the people who are first into a property when guests leave. 

If you are constantly giving your cleaning company a problem you are not going to keep them. 

You need to pick a good cleaning company and then work well with that company 

  

BEST MOMENTS 

  

‘The worst thing that can happen with rent to SA is that you give it back’ 

‘Build up your passive income when you are still in a job then you can live the life you want to live as an entrepreneur’ 

‘I spent 24 years in the army as an entrepreneur, if you have an entrepreneurial spirit you have to find a way to be an entrepreneur’ 

‘I’m fully aware that sometimes guests leave a property looking nice and sometimes it’s like a war zone’ 

  

VALUABLE RESOURCES 

Keeping it Real with Khadija Podcast 

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/ 

kevin@propertysoldier.co.uk  

  

ABOUT THE GUEST

Keep it real with Khadija is an interview-based podcast hosted by Khadija Kalifa. As a BBC Apprentice finalist and busy Mumpreneur, Khadija is on a mission to build an empire whilst raising two children, inspiring others to make their passion their profession. Khadija speaks openly about how she g

in this episode Dan Eaton, Progressive Property Investor 2018 who has a portfolio of more than thirty properties and specialises in the Serviced Accommodation space explains how the changing face of e-commerce impacts on operators of SA.

He highlights the risks and importantly provides great practical and detailed advice on how the systems work and how you can take action to keep yourself safe when dealing with customers for your serviced accommodation.

This is an episode that anyone in the arena of serviced accommodation should be listening to as Dan highlights in detail the positive actions you can take to keep yourself safe rom fraudulent transactions.

 

KEY TAKEAWAYS
You must think about e-commerce and the worldwide travel industry.
If you are a victim of fraud as a consumer you are protected. As an operator who is a victim of fraud it is unlikely you will get any money back.
The highest risk is the cardholder not present or keyed entry.

Minimising the risk
It’s vital to collect all the information you can because;
If there is a claim you can provide detailed information  
If you are a fraudulent booker then a request for detailed information is likely to act as a deterrent to completion of the booking.

What to collect
Cardholder name – make sure the name as it appears on the card is the name of the person booking
Make sure the expiry date is the same as the one appearing on the card
The billing address where is this card registered?
Card security code
Get a photo of both sides of the card
Check the alignment of the numbers on the card they should be symmetrical, in alignment, evenly spaced
Card numbers always start with a specific numeral such as 4 for  a MasterCard
Check the hologram is correct
Signature strips – visa have lines through the strip, MasterCard has dots or MasterCard written through the strips.

What are providers doing
3d secure is a protocol which offers good security but people often can’t remember the password. It’s not very customer friendly
There has to be a balance between protecting the customer and enabling them to make payment easily.
3d secure version 2 is designed to build better security along with better customer experience.
As consumers, there are additional steps to go through.
As operators we need to build in additional authentication steps into our payment check outflow, our business models need to change.
Ask your channel manager and payment gateway what they are doing about security and ensure you are looking at everything as a complete package.
The aim is to protect the business from fraudulent transactions but balance it with your customer experience.

 

BEST MOMENTS

‘When you start asking for detailed information along with a photo of the card and photo id you will get rid of a lot of fraudulent people’

‘It’s a difficult balance and banks are going to give security precedence over customer experience’

‘Look at the new technology on offer and how you can integrate it into your business’

 

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/

kevin@propertysoldier.co.uk