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START UP OF THE MONTH Breaking down barriers
London-based startup, Holiday Crowd, lets investors build a portfolio of shares in different holiday properties rather than owning any one property outright. IBS Journal got the lowdown from CEO, Alistair Malins
Interview by Scott Thompson
yourself.
I
BS Journal: Tell us about
Alistair Malins: I founded Holiday Crowd to break down the barriers to entry to investment in short-term rental accommodation and create an entirely new type of product. We allow investors to own a stake in a holiday property from a minimum amount of £1,000 so they can benefit from the financial rewards of ownership, without the hassle. They can also book a stay in any one of the properties they invest in and get even more enjoyment from their investment.
IBS Journal: What’s your business model?
AM: Our team handpicks properties using over 25 years of experience in the holiday rental market, combined with cutting-edge technology, identifying the best locations and properties for investment. We manage the process removing the hassle of
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dealing with real estate agents and lawyers acquiring the property on behalf of investors using a company specifically set up for the transaction. Investors receive shares in the company that owns the property and receive rental income net of any fees and costs via an annual dividend. They can also sell their shares further down the line, realising any potential increase in the value of the property over time. Our revenue model is pretty simple. We charge a 5.0% one-off fee on the initial investment for arranging the transaction. We then receive 5.0% of the gross rental income generated from the property to cover ongoing management costs.
IBS Journal: What sets you apart?
AM: We’re opening up an entirely new asset class for investment. Most people don’t have ambitions to be a buy-to-let landlord, but love the idea of owning a holiday property. We offer them a product and service that gives them
the satisfaction of investing in an asset that people can enjoy, along with the inflation-proof returns from holiday lettings and any increase in property prices. Being able to stay in a property you’ve invested in is a real differentiator, and we actively encourage customers to refer friends and family so they can enjoy their investment together. We’ve also partnered with one of the UK’s largest holiday lettings agencies, Sykes Cottages, to provide a route to market and a trusted brand so that we can ensure our properties and customers are well looked after. We make a point of working closely with them to create a mutually beneficial relationship.
IBS Journal: Who or what inspired you to set the company up?
AM: I initially had the idea whilst on a plane to Greece, and then spoke to as many people as I could about it. The common theme was that owning a holiday property was out of reach for most investors. Most had
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