In a recent video for my YouTube channel, I toured my student’s Rent2SA (Rent to Serviced Accommodation) properties. My student, Niall Byrne runs Wyndale Living a successful business which manages Rent2SA properties. I was very impressed with Niall set up and operation, which earns him over £10,000 per month in clean profit!
Rent2SA is where you rent a property from a landlord and then offer it to guests as serviced accommodation (on sites like Airbnb and Booking.com). This is all done with the landlord’s permission and with the correct legal contracts. It works out to be a great win-win-win scenario for the landlord, the guest and the business owner. In this article, I will explain exactly why everyone wins in Rent2SA deals.
1. Why is Rent2SA A Good Deal For Landlords?
When a landlord lets out a property on a single let basis, they have to: manage the property; pay for maintenance; find new tenants when old ones move out; and lose money in void periods. When a landlord passes a property to someone else as part of a Rent2SA deal, the landlord: doesn’t need to manage the property; maintenance is generally covered (up to a certain amount); doesn’t have to find tenants; and rent is paid regardless of occupancy.
Additionally, as the renter is on a corporate let agreement, there is no long eviction process if the rent isn’t paid. From the point of view of the landlord, it makes their business passive and stress-free, with a guaranteed income each month!
2. Why Would Guests Choose An SA Property Over A Hotel?
With lots of hotels around, why would someone choose to stay in a serviced accommodation property? Firstly, a serviced accommodation property will generally offer many more home comforts that a hotel doesn’t. You will normally have a kitchen, living room and the whole place to yourselves in an SA. Not only that, if you are travelling in a group or as a family, it will normally be cheaper than booking multiple hotel rooms.
Choosing to stay in SA properties is also better for longer stays such as for business trips or home relocating where you may need accommodation for 1-2 months or more.
3. Why Is Rent2SA A Good Business Model?
The Rent2SA model is a great way to get into property, as you don’t need a lot of money to get started. While buying a property requires a large deposit and to be approved for a mortgage, Rent2SA deals can be done for a lot less. It is possible to negotiate rent-free periods for set-up and sometimes you won’t even need to pay a deposit! Even when you do have to pay a deposit, it is much less than buying a property.
Despite the low start-up costs, returns on Rent2SA properties can be excellent. It is relatively easy to become financially free with 2-3 Rent2SA deals. Of course, it is important to get the right training before you start, as there are also many pitfalls you need to avoid. If you would like to learn more about property and Rent2SA, why not book on to the Property Investors Crash Course?
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here!
