Franchising is one of the most reliable ways to start and more importantly succeed in business.
Many industries now adopt a franchise model of some sort and the real estate industry is no different.
So what makes a short term rental, holiday homes style franchise so attractive in 2022?
Let’s see the answer through this post!
Reasons Behind Starting A Property Franchise
There are many reasons why you would want to get started with short term lets and serviced accommodation property franchise, not only because it is a very lucrative business model.
Firstly, you can get started in this industry at a fraction of the cost most people think they need to get started in property. With creative strategies such as rent-to-rent and lease options now commonly used and understood you can run your own Airbnb business without needing to own a property.
Rent to rent or rental arbitrage as it is known in most countries around the world is executed by renting a property from a landlord and then hosting guests on a per-night basis to make your profit. There is no need to pay stamp duty, taxes or legal fees to acquire these properties and you can make good profit margins on the uplift after the rent and bills have been paid.
Before you get into this industry you will wonder why landlords would allow you to rent their property out and run it on Airbnb and make money? Why would they not do it themselves and make the extra money?
The simple answer is they don’t want the hassle.
To find out how to persuade landlords to use their property, check out this video:
How Franchise Model Can Help?
As you build your cash flow from the operations of one or two properties you can reinvest it to scale bigger and bigger.
Eventually, you will have enough money to start buying your own assets. So basically you can use someone else’s hard-earned money initially to help you get started and then from the profit you make you can start buying your own assets. Such a powerful strategy.
So why do you need a franchise? It all sounds so simple right…?
Let’s be honest, if it was easy then everyone would be doing it. It’s not easy, in fact, it is bloody hard work, especially at the beginning but don’t let that put you off as the medium to long-term benefits far outweigh the struggle.
Imagine running your multi-million-pound turnover business from your mobile phone, anywhere in the world.
Working whenever you want and not having to answer to anyone. In fact with Luke Stays, as it’s an international franchise you can grow your business in the locations you like to spend time in the most and hop around the world.
Sounds amazing right?
It’s all possible with a bit of hard work in the right direction.
This brings us to the next benefit of owning a franchise.
The Success Of A Property Franchise
Modelling success is the fastest way to succeed. Learning from someone or an organisation that has made the mistakes, figured it out and profiting from the very same industry you want to be involved in is almost a guaranteed way to repeat the same success for yourself.
Look at McDonald’s, their franchisees are guided from day one to replicate the exact same business that has created billions of dollars for entrepreneurs all over the world who invested in their franchise and put in the hard work behind the scenes.
Owning a Luke Stays real estate franchise is no different. We have made the mistakes, had the troubled guests, conquered the acquisition process plus much more to get the group to where it is today and from those experiences a clear path has been formed for anyone starting their business behind us with our support.
You can’t succeed without TRUST!
Life and business revolve around trust. Just think about the last purchase you made, why did you buy it? Because you trusted the company to deliver on the service or product no doubt. Why didn’t you buy from their competitors? Because you didn’t trust them as much I would imagine.
Building trust in the property industry is one of the hardest things to do. Real estate agents have companies like ours trying to build trust with them every day and become their priority clients for all the hottest property deals. How do you compete as a new kid on the block?
Guests are thrown so many choices to book from online and they will book with the company they trust the most. The property manager has proven social proof of delivering through their previous guest reviews. The company that confidently builds trust with their client so they feel comfortable entering their credit card details on your website. Luke Stays does this in many ways, yet the most powerful is our accreditation with I-PRAC the global certification for short term rental providers. Something you can only be stamped for after years of service, so how do you compete without that?
That’s where a franchise adds serious value to your property journey as you can piggyback on the trusted brand. Imagine walking into your first estate agent stating you are part of Luke Stays, a property management company that controls in excess of £50m worth of property. Do you think the agents might make you a priority? Do you think you would have more confidence?
Most businesses have a 15% chance of success when they start alone. Under a franchise, they have an 85% chance on average of succeeding.
Where would you prefer to invest your money? Into a 15% success rate or an 85% success rate?
To find out more about starting your own short term rental property business under the Luke Stays trusted brand. A brand that has hosted over 100,000 guests and continues to go from strength to strength watch our franchise webinar to learn more about our franchise model and get started!