Why Serviced Accommodation Beats Buy to Let | Alex Coghill | PCN #43

So you went into serviced accommodation, namely rent to serviced accommodation.

So can you explain...

Just in layman's terms, what serviced accommodation is and the differences between that and rent to serviced accommodation.

So serviced accommodation is basically where you rent a property out by the night rather than letting it out indefinitely to a tenant.

So that will be leisure guests, potentially relocation stays, insurance, contractor work.

That's the type of people that are staying.

So anything you need basically on a short-term basis, that's what serviced accommodation is.

Rent to serviced accommodation is basically where you rent the property of someone instead of buying it and then you'd run it as a service accommodation.

You've got a contract in place for that.

It's all, the way we do it anyway, it's above board.

I don't imagine there'll be other people out there who just don't tell the landlord, but aye, that's kind of how it works, you rent it off them.

See,

in terms of renting it off them, is it just a PRT or is it like a company-led agreement? How's all that

structured? Company-led agreement is what we use.

So we've got it in place that we clearly define who's responsible for what so any um fixtures in the properties like boiler and your electrics etc that's landlord responsibility so if they if anything goes wrong with that they need to fix it any fittings or any gas damage things so if someone puts a hole in the boiler or rips a radiator off the wall that's on us because it's clearly from the use but if it just fails that's on them it replaces all that stuff it's clearly defined in the contract yeah um also with the they know where we're advertising and stuff as well so it's all very above board you could technically use a PRT agreement as well I suppose because you can there's a stipulation in that contract that you would just put happy for people to

it's a stipulation I think in a normal PRT about short term it

can't be used as short term you can do it but I just like to have our own agreement because it's more kind of all encompassing like it covers the maintenance it covers everything else like with it so it's just a bit better

How does that work then if you've done a company-led agreement with the landlord's mortgage lender and insurance?

So that's probably on the...

When we're taking the property on, we'll tell them that you need to have the correct mortgage in place and stuff like that.

So that's on them.

That's not really on us.

But as someone who has... we would inform the landlord that they need to have the correct mortgage and stuff in place I advise them this is stuff you need to have in place like if you want to go get it great if you don't it's on you but that's

like I see you

tell them that we'll keep them right because I don't want that landlord to come back to me in X amount months time and say what's going on here I suppose how does the lender really audit it it'd be quite difficult for them to audit it and find it but say they did an audit and found it then, yeah, they could maybe come up to me and say, why didn't you tell me? But, aye, if they want to have the, they would obviously need to obtain the correct mortgage product to then allow us to let it out legally.