Do you want to get into property management without the need to fully into purchasing properties? Here`s a business idea that may suit you. A Rent to Rent Serviced Accommodation business is a model whereby you rent out spaces from property owners and lease them out for shorter periods through vacation rental sites like Airbnb. This model is one of the most effective methods to earn passive income and build a property portfolio with limited funds.
In this blog, we shall cover the step-by-step process of establishing a Rent-to-Rent Serviced Accommodation business. In the process, we will also cover what growth partners like GrowYourBnb do, who are involved in Rent to Rent Serviced Accommodation businesses.
What is Rent to Rent Serviced Accommodation?
To properly outline the procedure, one needs to explain the concept first. The rental structure implies that you rent a property from the owner and then rent it out again to customers or guests for limited periods. The aim is to rent the place at a lower price than you will pay in the short let and in so doing you gain on the markup. A Rent to Rent Serviced Accommodation business also operates these short-term rentals but with extra services, including cleaning, maintenance, and helping guests check in to give the feeling of a hotel.
Step 1: Research the Market
Crime Statutes are helpful with potential crimes in armament; hence, they can be applied when analyzing any economic activity. Since this field draws potential investors and all requirements need to be covered, thorough investigation tends to precede the action. Look into the market potential for short-term rentals in your region of interest. Visit popular websites such as verbo.com, booking.com, and airbnb.com to check out the kind of Rent to Rent Serviced Accommodation that is offered, too.
Analyze the key metrics such as occupancy rate and average nightly rates as well as look at some property types which have been successful in the targeted area of your choice. This research will help you ascertain whether the market is already overpopulated or whether there is an opportunity for an additional serviced Apartment business.
Step 2: Draft a Business Plan as This is Important
It is only prudent that in running a Rent to Rent Serviced apartment business, a business plan should be readily availed. Set your objectives, findings from market research, the people you will sell to, and the finances you expect to raise. How you will position your business in line with the competition is a fundamental component of your business strategy.
Are your target business guests who spend only a few days, holidayers on a vacation, or long term rentals? What extra facilities/ services can you provide to the guests? A proper strategy will not only help you but will also become important when looking for investments or when renting premises.
Step 3: Look for the Right Properties
Having developed a sustainable business plan, it is now time to look for the necessary properties that you will be renting. Properties that are of interest to your target audience and are located in strategic areas should be sought after. This could be around the downtown area, sightseeing sites, or business centers.
There are two ways of reaching out to landlords; either directly or through letting agents. Handle the properties in a way that they complement the activities that you pursue as a business. You would like to ensure that the lease terms and conditions are favorable and enable you to rent out the house as a Rent to Rent Serviced Accommodation business which can be hard to implement as some landlords don’t want to agree to it. A well argued reason will be necessary as some landlords are always put off.
Step 4: Secure Contracts and Agreements
Making sure that you have the right legal contracts in place when you are in the process of beginning a Rent to Rent Serviced Accommodation business is very necessary. This is going to mean that they will need to discuss the lease terms with the landlord, who then should make sure that sub-letting is allowed verbally and within the written document. The essentials such as rent, duration, maintenance obligations, and penalties amongst others have to be made clear in the agreement.
On the same note, it’s worthwhile to capture some ground rules with the guests. Prepare guest contracts that include check in and check out times, house rules, and policies on damages.
Step 5: Furnish and Design Your Properties Again
The guest’s experience is one of the main things that will attract guests to a Rent to Rent Serviced Accommodation business. Your properties should be furnished and designed well to entice guests and receive their positive feedback. Property prestige is enhanced by good furniture, excellent bedding, and nice designs in the rooms.
There is no shame in trying to create a warm and inviting environment that combines the best features of a home and a hotel service. It is recommended that you involve the services of interior decorators or seek such ideas from social media websites such as Pinterest.
Step 6: List on Online Platforms
Filled with all the comforts that you have added to your property, it is now time to advertise it on one of the short term rental listing websites whether it’s Airbnb or Booking.com or Expedia any of those platforms. It is a mandatory step when creating the listings, great content and pictures are uploaded and appropriate prices are set.
These listings should also include the words “Start Serviced Accommodation Business” to ensure they are visible when searched from the above sites. You may want to consider giving sample offerings to your initial guests as part of your marketing strategies in the hopes of having a good number of reviews placed about your business reviews that will not go unnoticed in aiding your online business goals.
Step 7: Put In Place a Guest Management System
Any business dealing with Rent to Rent Serviced Accommodation requires an order. Communication with guests, reservations, maintenance bookings all of this requires a rather well organized system. To optimize these activities, various tools may offer assistance, such as:
Channel Managers: These applications allow you to have several sites synchronizing your bookings, for example, through Airbnb and Booking.com sites.
Guest Communication Apps: Use these apps to send reminders about check-in, house rules, and things to do in the area to your guests.
Cleaning and Maintenance Management: Adopt applications or hire specialists to ensure that your properties are clean and organized for each subsequent guest.
Through the improvement of the operations in question, you will manage a large number of properties in a short time.
Step 8: Keep Perfecting Your Earning Potential
When the Rent to Rent Serviced Accommodation business is functioning flawlessly, it is time to work more efficiently and enhance earnings. This can be done by increasing the number of bookings or by adjusting the price to higher rates in high seasons. Additional services can also include surpassing customers’ expectations and increasing revenue, including but not limited to transport to the airport, guided tours, breakfasts, etc., within certain limits.
Step 9: Partner with Experts
One of the examples of the expansion of the business through skillfully co-operating in Rent to Rent Serviced Accommodation is working with experts in the field. Growth partners such as GrowYourBnb are indispensable if you are at the ambitious stage of growing your business. They have unique skills and knowledge in common with providing solutions for the growth and improving marketability of serviced accommodation assets. Whether it is about relations with the guests, positioning your offer, organizing the real estate for the management, selling property in favor of profit maximization, or any other aspect, those associates are true experts.
As an illustration, GrowYourBnb has consulted and automated systems and growth strategies for Rent to Rent Serviced Accommodation businesses. If such processes are underway, then it is prudent to seek assistance from the growth partners as this is the easier option for expansion.
Step 10: Stay Compliant with Legal Requirements
There are responsibilities associated with the serviced accommodation business that have a legal implication. Check that you respect the proper local laws about short period lettings. Such laws may differ depending on the region and may include but are not limited to the following: Health Care Regulation Insurance Coverage A need to obtain planning permission to give short-term rental Tax falling from rental earnings
You could fit all these criteria and not default on any of them.
Step 11: Marketing Your Business
Marketing strategies are creating the right effect for ensuring the long-lasting achievement of the Rent to Rent Serviced Accommodation business. Apart from listing your properties on popular sites such as Airbnb, it would be best to work on your website and social media too. Organic traffic can be easily achieved through SEO, hence phrases like Start Serviced Accommodation Business in your content are quite paramount.
Building a website is the main goal when you want to market your doors to guests. This will promote social proof which will foster more bookings.
Conclusion
Joining the Rent to Rent Serviced Accommodation business is a risk worth taking as there are brighter chances of coming out profitable without ever having to buy the properties. Following the procedures discussed in this document, you can be able to start and expand your business.
Finally, remember how important growth partners are e.g. GrowYourBnb who can provide you with efficient and faster ways to expand your Rent to Rent Serviced Accommodation business quickly.