2 Things to Consider When Starting an SA Business
So we took on another R2R SA yesterday. We got the keys at 2pm and the guest was in by 5pm. Make sure you keep the setup time to a minimum as you don't want to be paying rent on a property which doesn't have any guests in for the first couple of weeks.
Secondly, when doing R2R, there are three main costs. Deposits (which you get back at the end of the tenancy), rent advance (I don't consider this an 'investment', more just the cost of doing business) and furniture. So the main investment in my opinion is the furniture as it's a sunk cost. This apartment we took on came fully furnished, we had to buy a few small things e.g. Linen but all that only came to around £500. The reason you want to keep investment low as possible is because it's a R2R deal and if something goes wrong then you want to be able to get out without having lost much or any money at all.
So to sum up:
1- keep the setup time as low as possible
2- keep the sunk costs low as possible