SA 2021 Boom. Will it last?

Serviced Accommodation bookings are going crazy!

In this episode, I will discuss the current Serviced Accommodation boom and whether I think it will last into 2022….

One of the most frequently asked questions I have received lately. What’s going to happen in 12 months? What should we expect?

In this episode, I’m going to break down for you what’s happening in my Serviced Accommodation portfolio right now and what demand was like before COVID to give you an insight into what may be the norm after the boom.

Let’s start by looking at the reasons for the increase in demand. Firstly, the Staycation market. Due to the pandemic, more people are choosing to go on holiday in the UK. They want to remove the risk of changing restrictions and financial loss.

Secondly, there’s a lot of companies playing catch-up, so there’s a significant increase in corporate bookings. We also have received massive demand from the construction industry, with major projects trying to make up for the lost time.

Staycation bookings have not been a key focus for me. Instead, the corporate and construction industries have been my preference. If I think back to before COVID, my portfolio was achieving around 90% occupancy.

However, more recently, our occupancy rates have been 99-100%, so there has been a clear increase!

Listen to the rest of the episode to discover my predictions for next year, how you can diversify to reduce your risk and what you can be doing in your Serviced Accommodation units right now to boost your chances of success...

Podcast Transcript↓

[00:00:00] Wow. My service accommodations are going crazy right now. Stupidly high occupancy rates, but will it last. Plus I've got a special giveaway this week, 21 rent to rent objections. Exactly what you need to know to get yourself more deals. You've got to subscribe to the YouTube channel to hear exactly how you're going to be able to get your hands on this document.

[00:00:29] For now enjoy the episode

[00:00:35] I'm Simon. And a few years ago, I decided I wanted to make a change. I wanted to create a passive reoccurring income to support me and my family. And a legacy for the future, a future fast forward two years, and I've managed to generate over 10,000 pounds worth of monthly passive income. I've set up the business, scaled the business, and now have systemized the business to free up my time.

[00:01:04] So join me to find out how I've done it. How well does it do diminish every day and how you can do it to.

[00:01:27] Simon here and welcome to today's podcast, episode wine, going to be looking at the S a boom and whether I think it is going to last that's what a lot of you are hitting me up about. You're saying, yeah, yeah, yeah. Essay's good. Now. But what's it going to be like in December? What's it going to be like in March next year?

[00:01:48] How about 12 months from now? What shall we expect? So on this podcast episode, I'm going to be breaking down exactly what my predictions are. What's going on in my essay portfolio right now. What was going on mid COVID? What was going on before COVID to try and give you an insight into what the norm might be after this boom.

[00:02:13] Before we get into it. If you're brand new to me, I'm Simon. And a few years ago, I decided to make a change. I needed passive income. I needed income that I was able to control, you know, not a boss's income, not an income that if I stopped working would stop an income that could protect me on my family.

[00:02:36] And property has been the key. Um, my main strategy is investing my money to rent, to rent and using the cashflow from the rent to rents, to build my BR R R our portfolio. And if you want to know more about that, make sure you subscribe right here and head over to. Search Simon Smith online and go ahead and smash the subscribe button over there.

[00:03:00] There's over 50 videos of content and visualizations of what I talk about right here on the pod. So let's get into it. There is massive, massive, massive S a bookings going on and essay demands at the moment. And I personally think that, you know, There are a few different reasons for that. The first one is the staycation.

[00:03:30] More people are going on holiday in the UK. They're staying in the UK because of the C word, the travel restrictions and financial restrictions, but mainly the travel restrictions at the moment, because the general consensus is a lot of people have got more disposable cash now than they had before, because they.

[00:03:52] Been through so much locked down that they've been able to save. So it's mainly the fact that they, um, you know, they're more comfortable going on a holiday at home and maybe they've not got the double vaccinations yet, and maybe they don't want to pay and risk, um, all the vaccinations and the tests that you need, not the vaccination, sorry, the tests that you need on the way in and on the.

[00:04:15] So that's the first reason, the second reason we're seeing a massive boom at the moment is companies playing catch-up. So this means that all your corporate people that were maybe struggling and had to make cook backs are now like, okay, let's go. So the corporate market is quite big also, and last but not least.

[00:04:38] We've got massive demand from construction. This is once again, companies playing catch-up where there is a lot of building and construction and developments going on at the moment. And they're making up for lost time. So there's tons of construction stuff. And if you can get the right people get the right links, this can be really, really lucrative.

[00:05:01] And, um, I've got some great connections. I'd be more than happy to. You. So if you've got an essay unit over the UK, I want you to hit me up on Instagram right now and just say, Hey Simon, I'm doing S a, could you please add me to your essay maintenance? And just let me know what you're doing. Send your number, also send your location.

[00:05:20] And if I get any demand, I'd be more than happy to pass it on to you. So that's what's going on right now. But if I'm honest, I've never focused on the staycation holiday tourism leisure market. I want the lasted, the corporate and the construction. And if I think back to before COVID we was probably around AEA, 90% occupancy.

[00:05:47] Most of the time through those bookings. And over the last few months we've been at like 99 or a hundred percent occupancy. So there's definitely been an increase, however, For me, I think we are going to come out of this essay boom, with higher demands than before, because I think a way from the corporate and the construction more and more people are definitely going to want to continue holidaying and having breaks and leisure and travel in the UK, just because not only if the safety stuff, but also the financial crisis hasn't really hit.

[00:06:27] And when people do get hit, as they will, uh, there'll be more job losses. There'll be more. Redundancies for load is going to go away. A lot of the government support systems will start to slow down because they've got to pay their debts off. And when that happens, I think we're going to see people with less disposable income and more and more people wanting to stay local.

[00:06:54] So for me, the key, what should you be doing in your essay? What am I doing? What I'm trying to do is have a diverse portfolio that can cater to those three key groups. The holiday is staycation, leisure. Um, you know, that's kind of one group for me, the corporate that's your companies, you know, in the area I'm talking about, you know, I've got a lot of Rolls-Royce clients that are on chain in, or they're got shorter term contracts and it's very.

[00:07:27] Corporate business chain unrelated. And then the third category is of course construction, which is massive. So what I'm trying to do is I'm trying to get a good balance of these three key groups. Okay. Because I know that if I get a good balance of them and a good balance of properties to serve them, that I'm going to cover my down.

[00:07:50] If you are in a place, um, you know, which is quite holiday E you know, quite seasonal, quite tourist based. You just want to make sure that you cover your downside. And you've also got some properties are going to work for your longer term stuff. And. A little extra tip as well, is what I'm finding is that some of the properties that are in high-end areas or proven to be great properties, because there's actually a fourth group I'm not included.

[00:08:21] And they are people, families that are maybe waiting for a property purchase to go through, or maybe they're doing massive works on their property. Okay. Or maybe they've had to move quickly and relocate. And there's huge demands for these people booking on service to combination platforms such as Airbnb and booking.com.

[00:08:46] So that's a little great thing to sort of tap into which we've been doing. So, and there is even a fifth one at the moment, which is international students. That have been unable to potentially contact or, you know, come to this country to view. And they're just going for Airbnb because it's safer. Okay.

[00:09:07] It's safer. So I'm getting huge bookends. I know a mentee of mine actually got a 36,000 pound book in a few weeks. For some students coming to the UK and they basically signed up from her place for 10 months. Um, over two grand cash flow for her every single month from one single deal. Will the essay boom, last.

[00:09:32] Maybe not at this level, but I think we're going to actually see higher demand for essay than we did before. COVID and that's good enough for me. Let me know, go onto Instagram right now. Find this post and comment. Let me know your thoughts, your opinions. If I've missed any. If you've got any questions and I will see you in the next episode, make sure you subscribe to the YouTube channel because I'm going to be doing a special exclusive live this week, but you got to subscribe to know when, um, don't wait 25.

[00:10:07] Okay, crave.

[00:10:19] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.