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Working with E-Property Solutions:

Our mission is to work with landlords and property investors to offer properties to our clients as ‘Serviced Accommodation’ units. The ‘Serviced Accommodation’ sector is widely publicised to be the fastest growing sector in the UK property rental marketplace. This is because it offers all the benefits and comforts associated with staying in a high quality home on a short-term basis. This method of property management typically returns four to five times the gross rental income compared to traditional buy-to-let arrangements. At E Property Solutions we apply our proven business systems in a growing market to create ‘hassle free passive income for our investors and landlords’ with no hidden costs and no tenants.

What is Serviced Accommodation?

The key difference between serviced accommodation and a standard buy-to-let is that instead of renting the property out on a monthly basis using a six-month assured short- hold tenancy (AST) agreement, you will be renting it out on a shorter, weekly or monthly basis. The best point of comparison is hotel accommodation in that serviced accommodation is a very much like an unmanned hotel, with no staff, no bar and no restaurant. Running your property as serviced accommodation provides the following benefits when compared to standard buy-to-let arrangements:

More Profit:

Because your property is competing with hotels, we are able to price the property accordingly which creates much higher profits that standard buy-to-let methods.

Less tax:

Running property as serviced accommodation also creates tax advantages in relation to mortgage interest taxation, the generation of capital allowances, reduced stamp duty and additional benefits associated with council tax/business rates.

No tenants:

Our clients will never stay in your properties as legal tenants, instead, they are classed as guests, and therefore we will have no tenant related issues. No court orders, possession issues or late payments.

How does it work?

We understand that agents, landlords, investors and developers are different, which is why we aim to personalise the agreement structure to suit the needs of our partners. Whether you are aiming to create equity, cash flow or portfolio growth, we can tailor an approach to suit your needs.

 

Based on existing agreements these are primarily the two models we use:

Management agreement:

The management agreement suits those landlords and investors who understand the SA model and are interested in offering their existing or new investment properties to us on a management basis. Our agreements are usually 15-20% depending on the level of service you choose.

Under the standard agreement the landlord is responsible for making the property available to E-Property Solutions; paying costs associated with furnishing the property; paying the mortgage; making sure the property is suitably insured and repairs over a value of £50. Under the same standard agreement E-Property Solutions has the following responsibilities:

The management agreement suits those landlords and investors who understand the SA model and are interested in offering their existing or new investment properties to us on a management basis. Our agreements are usually 15-20% depending on the level of service you choose.

Advertising and marketing of the property on websites; provision of clients/guests; meeting and greeting clients; arranging laundry and cleaning services; guest communication and check-in instructions; communicating terms and conditions to guests; taking payment; checking/vetting of clients; pricing analysis; cash flow analysis for each property; occupancy and rate optimisation; repairs on property up to £100; paying all bills; contents insurance; public liability insurance costs; professional indemnity insurance as well as general property management.

Description

Price Per Month

Notes

Based on 70% occupancy at average £110 per night (after OTA fees)

Gross Revenue

£2,342

Mortgage/Rent (LL)

£375

Assumed £135,000 75% LTV interest only buy to let at mortgage at 3%

Insurance (LL)

£40

Building insurances, based on quotations received

Bills (LL)

£200

Includes small business rates relief, gas, electricity, water, broadband, TV license and contents insurance

Cleaning & Laundry (EP)

£351

Based on cleaning cost, occupancy and average stays per month (typically 15% of revenue)

Management (EP)

£468

Based on our gold model “fully hands off” charged at 20% of monthly income

Total Monthly Costs

£1,434

Total operational costs per month

Total Net Profit

£908

Per month

Please note that the example shown here are for illustrative purposes only. The details of actual agreements and properties may alter due to changes in agreed rent/mortgage products and other variables which are beyond the control of E-Property Solutions. In addition, agreements can be restructured depending on individual circumstances, for example, in order to balance up-front costs with cash flow as well as to balance risk and reward. Please contact us for more details.

How we make more money?

Optimising occupancy rates:

We always exceed 70% (national average) occupancy by marketing the properties on numerous websites and channels whilst using professional interior designers and photographers.

Reducing third party booking fees:

We aim to reduce booking fees through targeted advertisement to increase direct bookings through our website.

Increasing the length of the average stay:

We work with local corporate clients to maximise the length of bookings which increases profit margin and also maintains our professional relationships.

Company Let

In this model, we offer the owner, a fixed guaranteed income. We are able to offer the full market rent and longer term agreements from 2-5 years. We will commence with upgrading the property in regards to furnishing, decorations and take care of all set up costs and management ourselves. This suits property investors who appreciate how are model works but do not want to be involved in the set up costs or to be concerned with performance of the property.  Either way, we will ensure your property is well maintained with weekly inspections. Your business is our business and therefore we pride ourselves in ensuring quality is paramount. As we host customers and not guests, you will never experience tenant problems, ever!

Frequently asked questions

Is my area and property suitable for serviced accommodation?


Not every area or property will be suitable so it’s important to understand what works where. We can undertake essential groundwork and research to determine the different types and grades of serviced accommodation that will work. We can also provide a free SA assessment on any existing properties you would like to convert to SA.




Is it too late to get started with serviced accommodation?


Not at all. It’s predicted that the market will have more than doubled by 2018. In 2016 Savills produced a report on the serviced accommodation sector, in which they predicted that it would soon be the UK’s fastest growing hospitality sector, predicted to grow by 122% by 2018. This means there is still valuable opportunity to take advantage of.




What if the bookings are low?


Under the management agreement model payment of the mortgage is the landlord’s responsibility irrespective of bookings. However, after the initial set up stage, we have never in our history had a month where the bookings were so low that bills couldn’t be paid. Should you wish to have a secured guaranteed rental at market rate we also offer a company let model.




Where does the income go? How do I know whether the property is being booked?


At E-Property Solutions we pride ourselves on being open and transparent. Therefore, we can allow landlords to remotely log in to our bookings management system to give full transparency of bookings and associated costs/profit report at anytime. This gives landlords 100% visibility of how their property is performing. Q: If I buy a property as Serviced Accommodation can I generate capital allowances? In short yes, Capital allowances can be a great way of minimising unnecessary income and corporation tax. Although we are not specialists in this area, so you will need to seek advice from your accountant.




What happens with maintenance and repairs?


As part of the agreement, E Property Solutions are usually responsible for minor repairs up to £100. Anything over this figure will require the landlord to pay.





Opportunities​

Location, Location, Location! We are interested in 1, 2 or 3bed apartments in and near the city center. As an area that we currently operate a number of units in we are confident about its success and growth.  We are also open to 3/4 bed+ houses that have good transport links and large properties that can accommodate construction workers, contractors and employees – we are currently experiencing a high demand for these types of properties. These can be near the NEC, Airport and near the city centre ring.  We are open to working with landlords, investors, developers and agents

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