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8 Tips for anyone starting out in Serviced Accommodation.

Planning to venture into Serviced Accommodation(SA) business?
Lay back and grab a cup of coffee I take you through the tips of starting out.

Here are easy tips.

1. In many/most cases C3 use class is the correct one for SA, so no need for planning.

2. There are multiple acquisition strategies –here are some: Rent to SA direct to vendor,
Management, BTL Conversion, Purchase, Lease Option, Commercial Conversion Straight lease (Guest house/B&B –use as SA instead)

3. Income from SA is exempt from Section 24 tax. In most cases it is Furnished Holiday let (FHL) Income and that’s what you declare on your tax return.

4. You can claim Capital Allowances (CA) on an SA property which you can offset your SA income against, if you (know how to) meet the criteria.CAs are a percentage of the purchase price (PP) and a percentage of the refurb costs. 20% of your total expenditure is a good place to start (‘rule of thumb’) when estimating your CA before tasking a CA surveyor to get a more accurate figure.
If your total expenditure (PP/Refurb) on a single property is 200K you could easily be looking at a CA of 0K. This means you will be able to earn 40K from your SA business tax free.

5. If set up correctly when doing Rent to SA, the owner of the property can avoid Section 24 tax and the owner of the property can claim CA.
This is a big incentive for Landlords/Vendors to rent or lease their property to you to use as SA.

6. You can buy Commercial property (including Guest House and B&B) using a pension (SSIP or SSAS) and convert it into SA, and keep it in the pension (as long as the property remains in Commercial use).
In many cases the CAs have not previously been claimed and so you can cash in on the unclaimed CAs.

7. There are many ‘tired’ B&B and guest house operators who would do a ‘lease surrender’ with an SA operator, and you could acquire the property at a fraction of the cost to buy it.
You can often bring into use the owner’s accommodation and the dining room to increase capacity.Often by taking some good photos and uploading them and the property on to the many online portals such as AirBnB and (there are over 30) which is free, and by having your own website to take direct bookings, you will dramatically increase the income.

8. You can avoid the booking fees charged by the online portals by having your own website and by approaching local businesses and contractors directly.No longer do you have to buy 5-10 single lets and take many years to replace your income -you can achieve your financial goals in just 6 months or less by cashing in on the Serviced Accommodation and the AirBNB Boom.No longer do you have to deal with nightmare tenants -you can make up to 500% more profits from your existing buy to let properties and offset all your mortgage.

Julian Businge
Julian Businge
Julian Businge ,is an Author,property and business coach ,trainer in serviced accommodation.She is creative, enthusiastic.she helps her clients make money through property even when they don’t own it.

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