BTL to SA – a sound idea?
No doubt you will have seen many posts on people changing their BTL properties to SA, and more than a few sourcers selling these or Rent to Rent Deals.
Serviced Accommodation is promising BIG returns and easy money, no doubt there has been massive growth in the market, the question is, will it continue?
A recent statistic I saw for Kent went as follows:
- 2 years ago – 179 SA units
- 1 year ago – 349 units
- Last week 1079
Now that is some growth and competition!
Some things to think about……..
- A first-class management company who will take care of everything (if not self-managing)
- Demand in the area for your target audience
- Competition in the area – how are you going to stand out?
- Guests have much more choice so the market may be more price sensitive
- How long will you need to wait to see a return?
- How will you fund the deal and when will you refinance?
- Flats have restrictions – check the lease very carefully
- Factor in the cost of your kit out of furniture, appliances etc.
- Style the property towards your target market
- Consider a capital allowances claim
- Pets or no pets?
If you can answer these then why not consider changing your BTL to SA?
