In another episode of The Airbnb Nomads Toolbox series, Alex and Pooh tackle the crucial question about the real costs of starting a rent to rent Airbnb business (R2RSA). They break down the often-overlooked expenses, debunk myths about easy entry, and offer alternative strategies for those with limited capital. This discussion is a must-listen for anyone considering entering the short-term rental market, providing valuable insights and practical advice for navigating the financial challenges of launching an Airbnb business!

KEY TAKEAWAYS

• The initial costs for a R2RSA deal are significant, including rent, deposit, referencing fees, and property improvements, often totalling £5,000 to £10,000 minimum.
• Investor financing for R2RSA deals is risky and not recommended due to the lack of asset ownership and the many variables in the business model.
• Property improvements can be costly, ranging from £2,000-£3,000 for small apartments to £5,000-£10,000 for larger properties needing extensive renovations.
• Many properties offered for R2RSA deals may require substantial upgrades, as they're often older or less desirable units that aren't renting easily.
• A consultancy model is suggested as a lower-risk alternative, where newcomers can help struggling hosts improve their listings and occupancy rates.
• The short-term rental business is not dissimilar to starting a letting agency, knowledge and systems are just as important as finance.
• Alex and Pooh challenge the common advice that one must have R2RSA deals before moving into property management, direct entry into management is possible with proper education.
• Education, confidence, and positioning yourself as an authority in the space is essential before managing properties for others.

BEST MOMENTS

"It does cost a lot of money to get into a rent to rent deal pretty much for anyone, whether it's apartments, larger houses, wherever you are in the UK, there's costs involved."

"Realistically, wherever you are, you're going to need minimum, minimum, minimum 5,000 pounds to get your first deal. And I would say more realistically, I would say 10,000."

"We're giving our students all of the tools that they need, the education, the systems, the processes, the knowledge to go out and work with those hosts who are struggling and to help to turn their properties around."

"We are pretty much almost like a letting agency for short term rental. So it's almost like if you come into the space, you are starting a hospitality business, you are building yourself a short term rental agencies."

HOST BIO

Alex & Pooh have built a portfolio of over 16 Serviced Accommodation Units and 10 Buy-To-Lets collectively over the last 5 years.

This AirBnB Business has allowed each of them to create their own tailor made ‘lifestyle by design’.

Pooh chose to escape the corporate life as an electrical engineer instead to spend his time at home with his young and growing family, and Alex likes to spend most of his time in sunny Spain enjoying his love for road cycling or even hiking in the Tramuntana mountain ranges.

CONTACT US

Facebook - https://www.facebook.com/alex.mannock/

Instagram - https://www.instagram.com/theairbnbnomadspodcast

TikTok - https://www.tiktok.com/@theairbnbnomadspodcast

YouTube - https://www.youtube.com/@Lifebeyondbroke/

Umesh Kalra joins the podcast to share his journey from corporate banking to becoming a full-time property investor and HMO expert. Umesh reveals how he built a seven-figure portfolio while juggling family life and a demanding career. From his first overseas investment to managing over 60 HMO projects, Umesh's story is a blueprint for aspiring property entrepreneurs. Learn how to overcome challenges, balance work and family, and create lasting wealth through smart property investments.

KEY TAKEAWAYS

• Umesh's first property investment was in Toronto, Canada, using his student loan savings for the deposit, showcasing the importance of thinking outside the box when starting in property!
• Consistency and determination are key to success, forming positive habits can be incredibly powerful to all areas of your life.
• Building a property portfolio requires sacrifice and time management. Umesh worked on his property business in the evenings after his son went to bed, demonstrating the importance of dedication.
• Having a supportive partner is crucial for balancing family life and business growth. Umesh and his wife created a schedule to ensure both had time for themselves and their own goals.
• Umesh's company offers a "hassle-free HMO" service, handling everything from property sourcing to management, making it easier for investors to enter the HMO market.
• The importance of having a strong "why" cannot be overstated. Umesh stresses that when your reasons are genuine and powerful, nothing will stop you from achieving your goals.
• Surrounding yourself with a supportive network is essential for mental well-being and business success. Umesh credits his mastermind group and friend circle for helping him overcome challenges.

BEST MOMENTS

"Everything's possible. You just really need to want to do it."

"If you really want something, you're really going to get it. You obviously don't want it enough to get it."

"I wake up, I know why I'm doing what I'm doing. I'm up every day on time. My wife is like, you're mad sometimes, but guess what? She's so supportive. It's quite easy."

"You can make decisions and you have to make the decisions. You have to make the decision that that is not the route you want to go down. Or you make the decision that you want to stay in that zone and that is the route you want to go down."

"If you knew exactly what was involved all the way through, you probably wouldn't do it. If you knew what it's like to be married, you probably wouldn't do it. If you knew what it's like to have children, you probably wouldn't have them."

ABOUT THE GUEST

Umesh Kalra

https://linktr.ee/umeshkalra

Umesh@moneyrowproperties.co.uk

HOST BIO

Alex & Pooh have built a portfolio of over 16 Serviced Accommodation Units and 10 Buy-To-Lets collectively over the last 5 years.

This AirBnB Business has allowed each of them to create their own tailor made ‘lifestyle by design’.

Pooh chose to escape the corporate life as an electrical engineer instead to spend his time at home with his young and growing family, and Alex likes to spend most of his time in sunny Spain enjoying his love for road cycling or even hiking in the Tramuntana mountain ranges.

CONTACT US

Facebook - https://www.facebook.com/alex.mannock/

Instagram - https://www.instagram.com/theairbnbnomadspodcast

TikTok - https://www.tiktok.com/@theairbnbnomadspodcast

YouTube - https://www.youtube.com/@Lifebeyondbroke/

In this episode, Alex and Pooh address a common challenge faced by new property investors - sourcing their first service accommodation deal. They provide valuable tips for standing out from the crowd, such as avoiding scripted conversations, networking in person with agents and landlords, and consistently sharing about their business on social media. Emphasizing the importance of being genuine and knowledgeable in the industry, they advise listeners to educate themselves before diving into property sourcing and to ensure they have a solid understanding of the market before making any commitments.

KEY TAKEAWAYS

• Instead of relying solely on cold calling, make an effort to meet agents and landlords in person. Shake hands, look them in the eyes, and present yourself professionally to stand out from the crowd.

• Focus on adding value to others, whether it's through conversations, mentorship, or online presence. By providing genuine help and insights, you can attract leads and build relationships effectively.

• Maintain a consistent and professional presence on social media platforms. Showcase your expertise, experience, and offerings to establish credibility and trust with potential partners and clients.

• Before diving into sourcing properties, ensure you have the foundational knowledge and skills required to execute deals successfully. Being prepared and knowledgeable will help you build trust and credibility in the industry.

• When interacting with others, be genuine, honest, and transparent about your experience and knowledge. By offering genuine help and insights, you can build authentic relationships and resonate with potential partners.

BEST MOMENTS

"You've got to make sure that whether you're talking to agents, whether you're talking to landlords, whether you're posting on social media, you've got to actually have the foundational knowledge to know what you're doing."

"You want to be sure that the deal stacks before you get too deep in because if you just get too excited, you get offered a deal and you start jumping up and down and ready to take anything."

"You're not a school teacher who's trying to build this on the side or a plumber who's doing a bit of a side hustle, you're now a full-time serviced accommodation host and make sure you're identifying as one."

HOST BIO

HOST BIO

Alex & Pooh have built a portfolio of over 16 Serviced Accommodation Units and 10 Buy-To-Lets collectively over the last 5 years.

This AirBnB Business has allowed each of them to create their own tailor made ‘lifestyle by design’.

Pooh chose to escape the corporate life as an electrical engineer instead to spend his time at home with his young and growing family, and Alex likes to spend most of his time in sunny Spain enjoying his love for road cycling or even hiking in the Tramuntana mountain ranges.

CONTACT US

Facebook - https://www.facebook.com/alex.mannock/

Instagram - https://www.instagram.com/theairbnbnomadspodcast

TikTok - https://www.tiktok.com/@theairbnbnomadspodcast

YouTube - https://www.youtube.com/@Lifebeyondbroke/