The Good & Bad From Owner’s Appointed 3rd Parties

When you manage Airbnb accommodation as a Superhost your credibility is paramount. Anything, or anyone that may comprise this, is frowned upon. And discouraged. Well, discourage is not the ideal word. As an agency, in 99% of the cases we will not get involved with owners embedding 3rd parties at their homes.

An owner with a 3rd party, at the accommodation with independent access to the house, can be a risky endeavour with poor long-term success…

Sometimes the owner may have good reason to have a 3rd party with free access to the home. But… Today, we want to share the dire consequences of such choices.  

Too Many Cooks In The Kitchen

You know what happens when there are too many chefs in the kitchen? Ask Gordon Ramsey.

As an agency, we are very protective of the owner’s interest. We demand 5 star ratings when guests leave. Obviously, we don’t demand it from guests. We only expect it. Our managers (hosts) success depends on how highly guests rate their stay.

Unfortunately, with 3rd parties, our ability to guarantee our intended 5 star is under strain. When problems arose, the managing agent carries the quality control can. But the 3rd party, protected by the owner, sees it differently. This unfortunately escalate the stress. More later…

Quazi Biology Class: The Owner, The Guest & The Agent Are In A Symbiotic Relationship

Mutualism Is The Ideal

We need to understand the symbiotic relationship. And especially the one based on mutualism:

An example is oxpeckers, who eat ticks and other insects from the skin of cattle. This feeds the oxpecker and delivers pest control for the cattle.  

In our case, the mutualism follows;

….the owner provides quality accommodation. The owner tasked the experienced agent to maximise the short-term rental income.

Guests expect quality accommodations. By leaving public reviews, guests let the world know whether it satisfied them with their stay. By leaving many 5 star reviews, the demand for the accommodation improves, and the agent can increase rates – with higher demand the owner’s income increase.

But With A 3rd Party Embedded Does It Become Parasitism?

Unfortunately, when a third party gets involved, the symbiotic relationship can become parasitism (not every time, but I would say 90% of all such relationships become bad). Obviously, the biology guys use extreme words to define parasitism. But let me try to translate it a little.

A parasitic relationship is one in which the owner imbeds a 3rd party for its sole benefit. The agent and guest do not, strictly, need the 3rd party. This 3rd party lives off of other organism(s) by hindering the agent’s mandate and guest’s expectations, harming it and possibly causing death. This translates into poor reviews, conflict between agent, 3rd party and owner causing termination of the agreement (death).

Who Are Normally Owner Appointed Third Parties? 

They are people the owner trusts, with independent access to the accommodation. They can be handypersons, a gardener, a neighbour, or family members. 

What are the bad dynamics with a 3rd party? 

• 3rd parties can complicate communication, authority, and responsibility. And, in the worst cases, can cause doubt or even distrust. 
• By making a 3rd party involved (access) the owner “encourages” two versions of the same event. Whose account is valid? The 3rd party or the agent? 
• In worst cases, the 3rd party act as a spy. 
• If the agent criticises the 3rd party, he can decide to give the owner biased feedback. Justifications and proving the case become the order of the day. 
• Access to the house is uncontrolled. Who handles the 5-star integrity and inventory of the house? 

None of these foster a good relationship between the owner, the agent and the (empowered) 3rd party. 

When family is the appointed 3rd party please remember; blood is thicker than water;

a person’s family (or emotional karmic relations) is more important than a person’s other relationships or needs.

Improving 3rd Party Involvement: 

1. If we have a choice, we would not agree to managing a property with a 3rd party with unrestricted access or who could interfere with the guest’s experiences. Let it not be a surprise if we will not agree to mange the property.
2. The 3rd party discusses any issue, with the agent first, or vice versa, then together they can involve the owner if needed. If the owner discuss an issue with the agent as relayed to by the 3rd party it’s in bad faith. 
3. Only the agent and guests have access to the accommodation and guest area. Over time, given a proven trusting working relationship, this can change. 
4. The agent handles guest satisfaction as measured by 5-star reviews. The 3rd party must agree to this and respect the managing agent’s aim. This aim is also the owner’s aim. The 3rd party should never cause conflict, or compromise the guest ready integrity of the home (intentionally or unintentionally).

Examples Where 3rd Parties Did Not Work At All. 

1. An ex-owner had a gardener he liked and trusted. This cool dude had unlimited access to the house. We would prep the house for the next guests. When we arrived with guests at the house, we found the remains of his lunch on the kitchen table – stuff in the fridge he left. It was impossible to maintain 5 star standards, and we parted ways. 
2. Another owner had a young man he wanted to help, who lived in a flatlet next to the house. He cleaned the house and looked after guests’ needs. In exchange the owner offered him a free stay. But he was a wolf in sheep’s clothes with “chemical” habits and long fingers. We parted ways. 
3. During a clean, the manager noticed an issue. She planned to address it before the next guests arrive. Before she could address it, the 3rd party reported it to the owner. Obviously, the owner was concerned and escalated the issue. And molehill became a mountain. If there were no 3rd party, there would be no issue. Why did the 3rd party not communicate with the manager first? Obviously, the owner allowed this story-telling communication.
4. A neighbour, the official owner-appointed-and-very-eager-3rd-party and pool cleaner, checked guests out. And later saw a broken item in the dustbin – the guests tried to hide it there. He reported it to the owner immediately, before we arrived to do our check and cleaning. The owner thought we were to blame. We parted ways. 
5. A very fancy home had a long-term tenant in a flat let. The tenant intentionally or unintentionally interfered with the guests.

Very Few Relationships Last When Owners Embed Their Affiliated 3rd Parties

When the manager and 3rd party don’t have a working relationship (a common goal rather), the burden to prove who is right or wrong causes unnecessary friction between the 3rd party, the owner and the agency. 

To the unsuspecting and well-meaning owner, embedding a 3rd party, these 3rd party related incidents may look innocent or even harmless. Unfortunately, a bad 3rd party justifies itself to the owner, and it is usually at the expense of its host – the managing agent. And, sometimes they are detrimental to guests, the agent and the owner. The risk is just too high. 

It’s a tough relationship to manage. From the above, it’s obvious that 3rd parties complicate trust and communication. It’s not an ideal spiral to be involved in. And unfortunately, we have seen our fair share of 3rd parties who have drawn too much energy. And the owner agent relationship died. Not pleasant.

Only A Team Effort With Mutual Success Goals Will Work

Those that work (we have one working 3rd party relationship). It works because there is mutual respect. We butted heads a few times. But today this 3rd party is a critical part of a team. Sharing the same common goal – getting 5 star reviews.  

Note: Sometimes a friend or a kid must enter, and they should. But let’s do it so that it does not compromise our mutual goals.

Regards

Johan Horak

P.S. Why did we write the above? We rather turn you down today than disappoint you tomorrow. By being transparent, we discourage new owners to get involved with us if they intend to embed a 3rd party. Let’s rather walk away today before we both invest too much.

P.P.S. Should Your Agent Choose Between Owner’s Objectives And Guest’s Expectations?

An owner reading the above may have valid concerns – for example, you may think:

• Who you represent?
• The property owner or the guest?
• Who takes priority?

An agency must look after the owner’s interest. But remember the chicken and egg story. Without the homeowner, there is no value (chicken). Without a pleasant guest, there is no value (egg).

And therefore we look after the interest of both parties to ensure we increase the value for the owner. And sometimes, we need to take a decision, like not managing a home if a third party is involved, because it has a high potential of negatively affecting both parties (owner and guest).

No reasonable owner would expect the management company to compromise the guest while the compromise only benefits the owner. No.

P.P.P.S Your Agent’s Responsibility: We Don’t Compromise On Value!

A letter to an owner who wanted to know why we were not interested in accommodating her 3rd party and questioned who takes priority – the owner or the guest?

We are agents. We meet the owners’ goals or try our best. And we try to meet the guest’s expectations.

The owners ensure we have 5 star properties.

We ensure the owner’s property brings a good return while we ensure the integrity of the property.

We never compromise on that. We have an obligation to the owner. Our owners trust us with a highly valuable property.

We add value by getting agreeable guests to stay and review your home. We expect only 5 star reviews.

The more (very many 5 Star reviews from a Superhost) we offer guests more than they expect and the owner’s value increases.

If anything compromise the above, then we cannot meet your and the guest’s expectations.

We are not an ordinary bunch. We are difficult when it comes to your value. And we have had enough experience to know what works. And you may not like this straight talk.

If we did not care about you, we would have accepted your beautiful home without blinking eye.

But we are not pushing money.

We know what brings you and us a long term happy relationship. And 3rd parties have comprised it very many times in the past. It may work, it may not. But we are not willing to take the risk.

Again, if we did not care about you, we would have not mentioned it.

We would rather shake hands today and be friends for life than disappoint you tomorrow.