Starting a serviced apartments business - Do's and Don't please

[theGuy]

I've covered a fair bit of ground with our friend Google but nothing beats experience of actual people doing the hard graft...

Where would you start from?
What would you read up on specifically?

People seem extremely evasive in answering any kind of questions on this (as if they are being asked for money!) - my personal take is that there is enough of it to go around many times over...

Your thoughts, guidance, tips, welcomed..thanks

 

[ethical PR]

• Do your market research to identify there is a gap in the market for the service you want to provide - you say you feel there is a gap in the market for additional serviced apartments - presumably you have research that shows this?
• Make sure you have a clear understanding of your customer, which communications channels you want to use to engage them and that you have identified budget to carry out marketing/communications activity. Look at what your competitors are offering and what you can do differently/better
• Do your business planning - lots of free templates available
• Make sure you have an understanding of how the sector works or the budget to hire in someone who does
• Make sure you have the finances you need to see you over the first year or so of business.

 

[theGuy]

Thank you for taking the time to respond but a lot of what you ve said is generic whereas I was after specific serviced apartment business related tips

 

[MOIC]

Share with the forum what you have gleaned from your research so far.

I'm sure people in the same business will like to see what you can offer as well as perhaps adding to your list.

(Unless you want to keep your findings a secret)

 

[theGuy]

Thats fair...instead of taking credit..most of information is in the link below:

http://www.lawpack.co.uk/files/sample-chapters/SC_B676.pdf

I would welcome more input from members please..

 

[MOIC]

I find landlords, which your business category is controlled by, are (probably) the least obliging people to offer advice.

I may be proved wrong . . . . .

 

[ldjames]

Look into selling to students. Despite what the newspapers say, many are willing to spend good money to avoid having to do housework. Look at towns with a dense student population.

 

[CHFCHF]

Do you mean buying flats/houses and then offering them for short term/weekend lets?

If so, are you a cash buyer or will you need a mortgage?

 

[Funding for Communities]

Hi,
I personally own Buy to let properties as well as providing mortgages for them through my company. If your based in an area popular with tourist and/or has a good volume of businesses then serviced apartments can be a great investment,however it really depends on the area. We are based in Cambs and there are a lot of them in and around the town centre so much so that one of the biggest is now selling off some of it's apartments. Make sure you include all outgoings in your plans like cleaning/replacement cost and booking fees which can be as high as15%. When we last looked in to it we decided to remain with BTL as the bottom line was better.

The mortgage is also more expensive than a normal Btl. Pm me if you need any advice on funding

Good luck with it
Mike

 

[CHFCHF]

This is the point I was driving toward. Most (all?) BTL mortgages will not let you do this as they need to be let on an AST. Many people do however, though it is mortgage fraud technically.

 

[Funding for Communities]

Hi,

Yes you couldn't get a BTL mortgage you have to go to a mortgage specialist dealing in these things. We deal with one or two.

Mike

 

[theGuy]

Look into selling to students. Despite what the newspapers say, many are willing to spend good money to avoid having to do housework. Look at towns with a dense student population.

Interesting that you take the view of selling whereas I was looking at it from a renting out the apartments. Obviously it's done to death but some place like Wembley stadium at times of games, exhibition etc..demand will be insane.

 

[ldjames]

Interesting that you take the view of selling whereas I was looking at it from a renting out the apartments. Obviously it's done to death but some place like Wembley stadium at times of games, exhibition etc..demand will be insane.

I meant renting, sorry.

 

[theGuy]

I find landlords, which your business category is controlled by, are (probably) the least obliging people to offer advice.

I may be proved wrong . . . . .

Doesn't look like you were too far off...unless someone wants to prove wrong

Dear o Dear - what is this forum coming to

 

[MOIC]

Landlords are a different breed to your normal business person.

They keep things close to their chest.

They rarely divulge information that can benefit others.

It, perhaps, typifies their personality.

"I only do what's good for me"

Sad.