Kane & Jay
How we'd split the money.

Quick context — this is rent-to-rent

We're not buying properties. This is a rent-to-rent serviced accommodation model (R2R). Here's the shape:

1. One of us signs a long lease (12–36 months) with the landlord at a fixed monthly rent.
2. We target furnished 1 & 2-bed apartments — properties already kitted out, so no furniture pack to fund.
3. That person puts in the setup capital: deposit, first month's rent, smart locks, listing photography, initial supplies, soft-furnishing top-ups — ~£3,000 per property.
4. We run the property as serviced accommodation (Airbnb, Booking.com, direct) under our management.
5. Our profit = guest income − landlord rent − bills − management fee.
6. The funder absorbs the void risk — landlord rent has to be paid every month, even if bookings are zero.
7. The funder takes 100% of property profit from day one — no payback period. Their capital, their risk, their reward.

No mortgage debt, no stamp duty, no major capex risk. The play is the spread between what the landlord charges and what we can earn from short-stay guests, multiplied across a portfolio.

The two scenarios

The cleaning fee always pays you first. When you funded the property, you keep all of it. When I funded it, you still take 75% because the work is yours. The protection makes sure your labour is properly compensated in both directions.

Worked example

A realistic 2-bed furnished apartment in Liverpool / Wirral, one typical month.

That £614 profit + £400 cleaning pot get distributed differently depending on who funded the setup:

You earn ~2.4× more in Scenario A because the setup capital + void risk are yours. You earn less in Scenario B because the risk is mine — but you're still paid £508/month per property for cleaning + management share, with zero capital outlay and zero risk if a month is a write-off. Five Kane-funded properties under management = £2,540/month from your share alone. Mix in a couple of Jay-funded ones and the numbers really start moving.

Why this is fair to you

• Your physical labour is never unpaid. Every cleaning fee compensates the work, regardless of who funded the property.
• Setup capital risk = capital reward. When you put your ~£3k into a property, you keep 100% of its profit from day one. When I do, I do. Symmetric. Void risk follows the capital — fair both ways.
• Management is shared because we both run it. Compass infrastructure, guest comms, owner relationships — that's both of us, so 50/50 every time.
• It scales with you, not despite you. Five properties under management means 5× the cleaning fees + 5× the management fee split. Your ceiling rises with the portfolio, not just with the properties you personally fund.

What we still need to nail down

The spine is locked: 16% management fee, R2R, ~£3k setup per property, funder takes 100% of property profit from day one, the 50/50 and 75/25 splits above. A few specifics still need agreeing before binding:

1. Whose name the head lease is in. Funder signs personally (clean ownership, simpler tax, direct exposure to landlord) — or joint management company signs every lease, internally we attribute profit to whoever funded (cleaner legally, more complex). Accountant's view worth getting.
2. Void risk + bad months. Property empty for a month → landlord rent + bills still due, comes out of funder's pocket. Net negative month → funder eats it; no draw on the management fee pot. Worth agreeing before a bad month, not during one.
3. What "bills" includes. Council tax, utilities, wifi, insurance, supplies (toilet roll, coffee pods, cleaning consumables), software (listing tools, Compass at market rate). One clear list — so nothing drifts.
4. Cleaning supplies + materials. Invoice the property (bills line) — or out of your cleaning fee? My instinct: bills, so your cleaning fee is clean income for labour only.
5. Cover for when you're not available. Holiday, illness, double-booked. External cleaner cost comes out of that property's cleaning fee pot, not yours generally.
6. Soft furnishings at lease end. Properties come furnished, so this is small — but linens, towels, welcome-kit items, smart locks, decor we've added stay with the funder by default.
7. Third-party properties (future customers). Managing for other landlords — management fee 50/50, cleaning fees same 75/25 split. Third party gets a clean monthly net statement.
8. The legal shell. Probably a 50/50 limited company or LLP for the management side, with R2R leases sitting either personally or in the company depending on #1.
9. Exit clause. If either of us wants out in 12 / 24 / 60 months — leases assigned to the remaining partner? Share sold at a multiple? Defined upfront, not under stress.