Rent-To-Rent Tour – Losing Money!?
I just went to see a property that’s managed by Chris which is a rent to rent as he’s got a very interesting story.
The property is actually a rent-to-service accommodation and this is when you rent a property but then manage it yourself by listing it on sites such as Airbnb and booking.com.
Chris is the master at rent to rent with serviced accommodation and the last thing you need is, controlling of the keys and access for guests when they come in.
He had bookings all the way through the year before the pandemic as it was cash flowing amazingly because in a good month, he was grossing between eight and ten grand a month as the profits from that was anywhere from two to three grand a month.
Because of all the extra steps they took to get into place, they managed to get contractors in on long term for 12 to 18 months but they’re taking it month by month because they don’t know what’s happening but they did manage to secure contractors to come in and take six rooms out of the property to avoid overcrowding.
There was a period in the summer time where there were people just leaving or lost their jobs as they couldn’t pay or do what Chris has done.
How are the Properties performing?
Chris believes the property went from really profitable to absolutely terrible and then to just about doing okay which has been going up and down.
“We’re handing the keys back because I prefer to just have it nice and steady as the ups and downs of this property I guess isn’t profitable anymore.
One of the best platforms we find on bookings is booking.com as we try to cater it more towards travellers.
At the moment, there are six contractors staying in the rooms and it’s all full as seven out of the eight rooms are full.”
Chris used to market to tourists as he was making crazy money and then the pandemic came and wiped tourism while other people handed their keys because they lost their jobs and couldn’t afford the rooms anymore.
However, what Chris has done is adapt. It might not be quite as profitable as it used to be but he’s now adapted and got contractors in the place now because what you need to do in business is to pivot and adjust.
The thing is that tourism is dead and so if you’re going to do serviced accommodation, you can still make money but you’ve got to adapt into contractors and business people as Chris has done.
I’m going to sit down with Chris as we’re going to have an interview and pick his brain on how he’s exactly done what he’s done which is coming tomorrow on this blog and my YouTube channel.
Connect with Chris: https://www.nordicpropertysolutions.c…
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