Plan B idea v7.253

[NorthWestPerm2Contr]

Short-term lettings

I'm sure others have explored this - a flat costing 140k can return 800/week+

Obviously it isn't going to have full occupancy but it appears to be a scalable business...

Start with 1 flat, arrange cleaner in between rentals - can't be that complicated really? I just used airbnb to book a flat close to an airport for a friend and he sent us all the info we needed in one email.

Is it me or does it seem to good to be true?

[DimPrawn]

Are you talking about services apartments, which are like a self catering hotel room (cleaning, electric, water, laundry, internet included in weekly rent)?

https://en.wikipedia.org/wiki/Serviced_apartment

Sounds like a good idea near a train station or close to a large business park.

[NorthWestPerm2Contr]

Are you talking about services apartments, which are like a self catering hotel room (cleaning, electric, water, laundry, internet included in weekly rent)?

https://en.wikipedia.org/wiki/Serviced_apartment

Sounds like a good idea near a train station or close to a large business park.

There are full serviced apartments operating like hotel rooms, I'm more interested in buying a flat within a private complex and using it for the same purpose. Then scale up, meanwhile reduce dependence on billing days.

[b0redom]

£800/week? That's ~ £115/night. You'd get a nice hotel for that with lots of amenities. I find it pretty unlikely you'd get anything people would want to pay that for for £140k.

Do you have any examples?

[DimPrawn]

Location is absolutely key.

Think where you would find one useful. Commuters are going to like one walking distance from a mainline railway or very large hi tech business park.

You should base the rate on what a cheap hotel would cost for the week, so it gives an alternative to hotel stays for business people.

[DimPrawn]

£800/week? That's ~ £115/night. You'd get a nice hotel for that with lots of amenities. I find it pretty unlikely you'd get anything people would want to pay that for for £140k.

Do you have any examples?

Yes I think £800/week is way off for £140K.

£800/week in London, but then the apartment would cost £800K

[SimonMac]

Funny you should say that, I was looking at a place up here (arse end of no where but lots of contractors).

Two bedroom house here £25k, say £100 a week per room @ 45 weeks a year = £9,000

A cleaner is £25 a week = £1300 a year

Electric, water, council tax and broadband say £250 a month = £3000

£4700 a year on a £25k investment

Won't make you a king but nice little supliment to real income

[NorthWestPerm2Contr]

£800/week? That's ~ £115/night. You'd get a nice hotel for that with lots of amenities. I find it pretty unlikely you'd get anything people would want to pay that for for £140k.

Do you have any examples?

You can have a family of 5 staying in a 2 bed flat without having to rent 2 seperate rooms out and you get the comforts of kitchen/lounge and home living.

The example is what I just rented out for a friend - 800/week for a flat that cost 130k a year ago near manchester airport. It's new build accommodation that's furnished to a high standard. You have alternatives with places like central Manchester and they command higher rents of 1600+/week. Though the price is more like 2x the cost of the cheaper rental - obviously.

[milanbenes]

as a business proposition you should be expecting the profit from the venture to cover the cost of the apartment within 10 years

therefore, looking at it one way, 140k for the apartment divided by 10 years, when I went to skool was, 14k

14k divided by 52 weeks (and now we are assuming 100% utilisation) is 269 spondoolees per week.

269spondoolees divided by 7 days is 39quid a night.

so, after all your costs and assuming 100% utilisation you need to be making 40quid a night to pay it off in 10 years.

working the calculation the other way, if we assume your numbers, 800quid a week rental income at 100% utilisation, that's 40k a year, multiplied by ten years giving a retail value of 400,000 for the apartment.

to conclude, if you can buy something for 140,000 and rent it out with very high utilisation for 800quid a week

then it sounds like a winner

Milan.

disclaimer - usual conditions apply and I am not authorised or qualified to give any financial advice at all in any respect ever

[AtW]

Are you talking about services apartments, which are like a self catering hotel room (cleaning, electric, water, laundry, internet included in weekly rent)?

https://en.wikipedia.org/wiki/Serviced_apartment

Sounds like a good idea near a train station or close to a large business park.

Kings Cross?