Darren Jamieson: On this episode of The Engaging Marketeer, I am joined by Orsi Szőcs. Did I pronounce that correctly?
Orsolya Szőcs: Yes, that’s correct.
Darren: Fantastic. Orsi is Hungarian, she’s here in the UK, and she runs—how many businesses is it now?
Orsolya: Four businesses.
Darren: Four businesses? I’ve known Orsi for a few years now because she used to be in my BNI group, but then she got far too busy with running businesses and having a family. So, Orsi, why are you so driven to run multiple businesses when most people would just be happy with one? What keeps you going?
[0:52]
Orsolya: I know, it’s just… this is my fuel, I think.
Darren: Your fuel?
Orsolya: Yes, I like to be busy, and I hate the feeling if I’m not. It’s hard to put together because I’ve never been asked this, but I just simply enjoy… I enjoy building businesses.
Darren: And what makes you want to keep doing another business after you’ve already built one?
Orsolya: It’s the change. After a while, I can get bored of the same thing. So, once I’ve figured something out, made it work, and it’s growing, almost automated, and it doesn’t require me… I can move on.
[01:44]
Darren: So all your businesses work around each other, don’t they?
Orsolya: Yes, all our businesses work around each other. We started out with a serviced accommodation portfolio. We don’t own the houses, but we manage them. We have a good relationship with landlords and give them a good return on their money. I started that over four years ago, actually on my own, before I met my partner, and then together, we built up the cleaning team and the laundry, so all our businesses are connected.
[02:26]
Darren: You said “almost automated,” which is interesting because many business owners have something called “shiny penny syndrome,” where they start a business, get it running, and then get distracted by something else before fully automating the first one. Is that a danger for you, do you think?
Orsolya: Yes, it can be a danger. Back in the day, I liked to micromanage everything, but you can’t do that—you have to trust people. We learned that with the laundry business. We bought the laundry with an existing team that had been together for nearly two years, working very well. So I had to trust them because they knew better than me.
[03:37]
Darren: So this is a commercial laundry, right?
Orsolya: Yes, commercial. We work with hotels and other businesses, not domestic laundry. And trusting the team was essential. Shiny penny syndrome would be if I went and started a restaurant or takeaway because it’s “good money.” But that’s not our profile. Our businesses are service-based, all around cleaning and hospitality, so they fit together well.
[04:18]
Darren: Yes, I wasn’t accusing you of shiny penny syndrome, but it does make sense when they’re all related. So, going back to the start, your first business was serviced accommodation, right? Renting properties out through Airbnb and Booking.com?
Orsolya: Yes, that’s correct.
Darren: So, these are properties you don’t own; you manage them for the landlords, who give you their property on a 12-month, 24-month contract?
Orsolya: More like three to five years.
Darren: And then you put that property up for short-stay holiday lets and pay the landlord’s rent?
Orsolya: Yes.
Darren: Is it higher than what they’d normally get, or about the same?
Orsolya: About the same, but with different perks. For instance, our first property was a five-bedroom house. The owner, an ex-architect, had questions about regulations and law, and I could answer all his questions, so he gave us the keys. The house was previously a student rental, and he didn’t want to deal with students anymore. So, after refurbishing, I invited him to see it, and he was pleased enough to bring his son to look as well. Six months later, he offered me a second property.
[07:00]
Darren: So, he came to you and said, “I’ve got another property. Can you take this one on as well?”
Orsolya: Yes. For him, the benefit was no longer having to fill it with students every year or deal with damage and repairs, like redoing carpets and repainting.
[07:33]
Darren: And no void periods?
Orsolya: Yes, exactly. With students, there are void periods, problematic tenants, and other challenges. With COVID, it got even worse, and I’ve noticed more landlords moving towards this arrangement, as they want to avoid the hassle. Plus, I put a first-refusal clause in all my contracts if they want to sell.
[08:13]
Darren: Clever! Has that come up yet?
Orsolya: Yes, I’ve been offered the five-bedroom house, but there’s no urgency from the landlord, so it’s an option.
[08:54]
Darren: And for that first property, what rent were you paying?
Orsolya: £900 per month for a five-bed. Today, you couldn’t get that below £2,000.
Darren: That’s a good deal!
Orsolya: Yes, it is, but let’s hope the landlord doesn’t listen to this! [laughs]
[09:38]
Darren: What’s the highest nightly rate you’ve managed to get for that property?
Orsolya: During Chester Races, about £550 per night, with a two-night minimum stay. That covered the monthly rent in one stay.
Darren: Impressive.
Orsolya: Yes, but we sometimes play with the algorithm to keep occupancy up. It’s better to book for half the price than have no booking at all.
[11:43]
Darren: What kind of occupancy do you have right now?
Orsolya: This year is lower than last year. Last year, January was 100% occupancy. Contractors helped us keep four months fully booked, but this January, we had only two bookings across four houses.
[13:09]
Darren: So, how many properties are you running now?
Orsolya: Three of our own and one with a business partner. We recently took on a farmhouse outside Chester. We didn’t know if it would work due to its location, but we made it happen.
[15:09]
Darren: I have to ask, what was the value of that six-month booking you got?
Orsolya: £4,000 per month, and we pay £1,200 in rent, negotiated down from £2,000.
[17:17]
Darren: With so many people getting into Airbnb, do you think this market saturation affects profitability?
Orsolya: Yes, it does. Many people jump into Airbnb thinking it’s easy money, but they don’t understand it, which pushes prices down for everyone.
Darren: Would you recommend new entrants use a management company or go it alone?
Orsolya: I recommend getting a mentor, especially to avoid common pitfalls. I started with a property training company, then got a mentor in Chester, and that was invaluable.
[22:29]
Darren: Now, to keep costs low, you bought a laundry business. How did that come about?
Orsolya: During COVID, we were looking to start a laundry from scratch but couldn’t find the right location. Then, we bought an existing laundry business, even though we had no experience with the machines.
Darren: You still don’t know how they work?
Orsolya: No, but I don’t need to! We have a great team, and I trust them.
[27:59]
Darren: Was it difficult to gain the trust of the existing staff?
Orsolya: Yes, especially as a foreign woman, younger than most of the team. But they knew me as a client before, which helped.
[31:19]
Darren: What’s it like finding motivated staff here in the UK compared to Eastern Europe?
Orsolya: It’s different. In Eastern Europe, we’re raised to work hard without a sense of entitlement, unlike here where benefits can create dependency. But I’m very fortunate to have a great team now.
[38:39]
Darren: Is this your last business, or do you have more plans?
Orsolya: I’m not sure—let’s see how it goes.
[43:53]
Darren: What made you come to the UK initially?
Orsolya: My ex. At the time, working abroad was a way for young people to save money and build a life back home.
Darren: So, if you’d stayed, do you think your life would be different?
Orsolya: Definitely. I’d probably be in a regular job.
[51:49]
Darren: For anyone who wants to learn more about your businesses or reach out to you, how can they do that?
Orsolya: I’m thinking of starting a consultancy for Hungarians and Romanians in the UK. I’m often asked for advice, so I’d like to help officially.
Darren: That sounds fantastic. Thank you, Orsi, for sharing your story.
Orsolya: Thank you.
