Benefits of Serviced Accommodation Deal Analyser

Nowadays one of the most important things when you are investing in the real estate business is the usage of technology because it is a crucial step to optimize the profit. MrbnbProfessor is one of the Serviced Accommodation Deal Analysers currently available on the market. This company offers you various kinds of useful tools that might help you to make the best decisions. In this blog post, we will tell you why it is useful to use Serviced Accommodation Deal Analyser and how these tools can help you with your investment ideas. 

When you are investing in serviced accommodation, the first question you should ask yourself is: what kind of property do I want to buy? Analyzer tools like MrbnbProfessor help to make this decision easier because you can compare your property with others and see what you can do to make a profit. With this kind of software, you can see your profit estimate without the need for a professional examiner so there is no need for big investments of your money. 

What is serviced accommodation Deal Analyser?

Serviced Accommodation Deal Analyser is an application, software, or spreadsheet, used by property investors to analyze whether Serviced Accommodation projects will be financially profitable or not. It takes into account the costs of the property, running costs, number of occupancies, and the total number of weeks booked, as well as the rents generated and rental yield, all of which are used to calculate the capital and cash coming in and out of the deal, such as the profit, return on investment (ROI) and the GDV.

The Different Types of Serviced Accommodation

 We’re all familiar with Airbnb-style rentals. But the serviced accommodation sector in the UK encompasses a broader market than just that: Here’s an alternative breakdown of serviced accommodation options, looking at services and conditions that each tends to bring to market

• Serviced apartments: While the tailored amenities are a distinctive feature of these ready-made apartments, what they also commonly offer is proximity to urban hubs. Serviced apartments will come with in-house facilities that will be detailed from the kitchen to Internet services, promising an overall productive and restful stay.
• Aparthotels: Picture sophisticated homestays with 24-hour reception service the best of both worlds. Apart from the term itself, the defining characteristic of an aparthotel is that it combines ‘the freedom of a serviced apartment with the convenience of a hotel’. Such apartments are sometimes called suits.

Use of Serviced Accommodation Deal Analyser

Using such special analyzers saves you time as well. You can easily compare properties while comfortably sitting at your home and drinking a cup of tea. There is no need to waste your time going from house to house to understand what the best option is for you as an investor. Moreover, every user has their own needs. For instance, one may have two kids while the other one wants to buy a property only for him- or herself. Different kinds of property attract different kinds of visitors.

Using a Serviced Accommodation Deal Analyser is a game-changer in your investment decisions. With accurate data and robust analytics, investors can discern the profitability of a deal with greater precision. The MrbnbProfessor platform incorporates a patented algorithm that predicts cash flow and profitability to avoid uninformed investment, for instance. These sites also often offer features where you can compare market analysis with properties, and benchmark your listings against comparable advertisements, thus leveraging better investment decisions in your property portfolio while negotiating better investment deals.

Key Steps in the Serviced Accommodation Deal Analysis Process

Here are the details steps for the Serviced accommodation deal Analysis process

1. Input Property Acquisition Costs

First, the property acquisition costs that come with acquiring the property need to be entered into the deal analyzer to examine the feasibility of the project. Such costs usually include these:

• Purchase Price: The cost you want for the property.
• Stamp Duty (or property taxes): A tax that will be due when one buys the property.
• Legal Fees: Amounts charged by solicitors or conveyancers involved in the purchase process.
• Survey Costs. Fees for the evaluation of a property, whether for purchase or other purposes.
• Renovation/Refurbishment Costs: Estimating how much it would cost to repair the house if it might be too run down to rent out.
• Furnishing Costs: This is an expense that has to be provided for as properties in serviced accommodation have to be furnished and provisions made within the properties.

The process of breaking down and locating each of the above in the acquisition costs successfully achieves the objective of making the investor understand how much money will be invested at the beginning.

2. Running Costs

Then you also have to do a profitability forecast of the serviced accommodation since its ongoing expenses should also be dealt with. Such running costs include:

• Mortgage Payments: In case you are financing the property with a mortgage, put the delta amounts every month.
• Utilities: The cost of serviced accommodation usually incorporates electricity, water, gas, and internet
• Cleaning and laundry: After each tenant stains a serviced accommodation, it is likely the services of cleaning and laundry would be required regularly.
• Maintenance: Make some allocations for possible maintenance and repairs.
• Management Fees: If you are procuring a property management firm that will be scheduling your properties and attending to your guests, then budget for these costs.
• Insurance: This comprises both property insurance and liability insurance.
• Platform Fees: Expenses incurred when advertising your property on platforms such as Airbnb would include fees usually a fraction of each done booking.

Council Tax/Property Tax: Any rates that local authorities charge on the property including the local that are occupied.

For each of these running costs, for instance, the Serviced Accommodation Deal Analyser will assist you in determining if the anticipated rental income will take care of your expenses plus profit.

3. To Determine Rental Income

Next, you will need to approximate the income from the rent that you can expect to receive. For this purpose use the following calculations:

• Average Nightly Rate: The amount you expect to receive from guests on an average night can change from place to place, season, and quality of the property.
• Occupancy Rate: The occupancy rate implies the percentage of time when the property is supposed to be vacant and rented out. A good deal analyzer will allow you to play with the occupancy rates (for instance low rate of 60% and a high of 80%) to evaluate different occupancy scenarios.

For example, if you rent out your property for $100 per night and it sits an occupancy rate of 80% you can rent a property for about 24 days out of a 30-day month. So your forecast monthly rental revenue will be:

4. Calculate Profitability Metrics

After entering the acquisition costs, the appropriate running costs, and the income from the rents, the Serviced Accommodation Deal Analyser will provide you with several metrics about the deal:

a. Net Monthly Cash Flow:

This is determined by total income subtracted from total expenses. In a situation of positive cash flow, it means that you using the money wisely such that there are profits made every month, while for negative cash flow, you will have to subsidize the deficit every month.

b. Gross Yield:

This metric establishes a ratio of the annual rent earned from the property to the property cost and assists in estimating the general percentage rate of return.

c. ROI (Return on Investment)

Eligibility to assess investment performance says it very clearly that, you will receive a percentage of how profitable to you, the evaluation of the property about the amount you invested.

d. Break-even Point

This measure shows what period is required for the original investment to be paid back from the operation of the property.

5. Analyze Different Competitors

When evaluating your patterns for understanding the potential of a deal, a good deal analyzer will allow you to insert different scenarios. For example, you can:

• Modify the occupancy rate to determine how the occupancy level increases or decreases the booking profitability.
• Change the nightly rate to determine whether more or less rental charges can make any difference in cash inflow.
• Take into account fluctuations in occupancy as well as the rental price over the seasons.

Carrying out these simulations guides you on the revenue earning capabilities of a property under different conditions thus enabling you to make better choices on where to invest.

6. Assess the Risk and Profitability

Using the information and the results from your Serviced Accommodation Deal Analyser, you can now make an overall appraisal of risk versus reward as concerns the property deal. In the case where net cash cash flow monthly together with the ROI is pleasing then it would probably make sense to go after that deal. But in case the numbers do not appear that appealing, it would perhaps be wise to think about not going ahead with the investment or try to find solutions for improving the current potential return level.

Overall, Serviced Accommodation Deal Analysers such as Mrbnbprofessor are a ground-breaking aspect to a property investor’s lifestyle in enabling them to make assessments of a potential opportunity to invest. Additionally, it could give them an advantage in terms of analyzing the potential investment in further detail and with precision. Therefore, it is hoped that by utilizing this type of tool, investors will be more informed and be able to make this decision more effectively and confidently.