The Two Kinds Of Owners Using Airbnb Management Agencies In Cape Town
One Airbnb owner mainly focuses on costs. The other focuses their attention on potential income opportunities.
Let me discuss these owners with you in more detail. And you may recognize yourself.
Owners Who MAINLY Focus On Costs.
Some owners are like accountants. The more costs they save, the higher the profit; at least on their statements.
When they meet a Cape Town short-term rental agent, the first question would be;
How Much Do You Charge For Your Airbnb Management Services?
They are particular. The details intrigue them. They cross all the accounting t’s and dot all i’s.
And when they are on board, beware if you have a cent out of place, and I literally mean one cent.
Elmarie (one of the Horak Clan running CapeHolidays.info) loves playing games. I suppose these guys play with cents.
But apart from details, they like auctions…
Auction! Wanted. The Cheapest Bidder
The potential owner throws out a very expensive house to many rental agents. And they expect agents to bid on it. The owner takes the lowest cost bidder or somewhere around there.
Cost is their primary criterion. How else do they qualify for their short-term rental agency?
They may even pretend to like you and ask all the right questions. But wait till they see the cost details.
If they perceive your management cost as too high, they run for cover.
Then we get owners who like to (re)invest…
Lucky Airbnb Management Agencies In Cape Town Encounter Owners Who Focus On Increasing Potential Income.
I am never saying income-focused owners don’t consider costs. No. But they have other objectives in mind…
- How much income can the agency generate for me?
- Will my house be in a better condition than I gave it to them?
- Do they sell experiences? How well do they treat guests?
- Do they have an excellent track record with other owners?
- How long have they been in business?
Obviously, costs play an important part. Ignore it not. And these owners ask about cost, but they see the cost as an opportunity to improve their offering.
Let’s mix it up…
One Airbnb Owner Sees Opportunities And The Other Sees Limitations
We all know the story of looking at the glass half full and half empty.
The owner who focuses on increasing income sees an opportunity to fill the glass.
But the cost-focused owner has a worried look on their face. They want to protect the bit they have.
One is creative, the other limited. The one is easy to work with. The other is not always.
Why Is Cost Focus A Deep Dark Trap For Any Airbnb Host Or Owner?
When your most important criteria are service costs, you will fail. Why?
The cheapest Airbnb rental agency in Cape Town is not necessarily the best agency.
Lack Of Mutual Trust Strains The Marriage.
Whenever the agency lacks trust, it has to justify its actions constantly and avoids being creative. Are all your t’s crossed? Why are they not crossed? Goodwill slowly wanes away. Animosity steps in. Divorce.
I have said it; we make mistakes. Mostly small ones. And try to not repeat them. There must be a way out…
We believe in the Pareto Principle
The Pareto Principle implies that 80% of your potential income is driven by 20% of the drivers you employ.
We must, therefore, focus all our attention on the important 20% yielding 80% return.
The issue is; the owner, who likes to cross the t’s and dot the i’s, functioning in the useless 80% area bring 20% or no return? I get the idea that the owner who pushes his agent on the no little return issues is oblivious to his actions and their causes. Is it a self-fulfilling destruction wish?
Eventually, we part ways.
But what about the owner who says,
“I Only Want To Cover Costs!”
Yes. You may not want to make money. You are just looking to cover costs.
Well, if maximising your income is not what you want, then I suggest going for a cheap agent.
But be wary. Not only is a cheap agent no guarantee, no, but your strategy also will not benefit Airbnb’s objectives. And you may make a lot less than planned.
Why Are CapeHolidays Airbnb Management Agency Not Cheap?
Any good Airbnb agency like CapeHolidays is not cheap. Yes, I know, some agents ask nearly double our rates and others 5% less. But are they better and do they provide all these Airbnb management services?
Should We Sacrifice Quality To Achieve (Y)Our Goals?
To succeed, we must keep costs to a minimum. But should we sacrifice quality to achieve our income goals? Here’s what we do:
- We don’t skimp. We get it done. Immediately. Or we don’t get involved.
- Airbnb Superhosts generate twice as much as ordinary hosts on average. We get it done. Now.
- We are one of the few Airbnb management agencies in Cape Town that check guests in and out. It costs money. Others rely on guests to check themselves out. No.
- Our costs of cleaning, linen, and supporting services may be above average. But to be the best, we must ensure reliable and quick service to our guests. Why? It turns into dividends for the owner.
- There is a price to be paid for 5-star reviews from every guest. We expect nothing less. And we are proud of our high income and high occupancy levels. It costs money.
We Prefer Owners Who Trust CapeHolidays
Where there is trust we can focus on maximising owners’ investment. We can afford to be creative, take calculated risks and even make the odd (transparent) mistake.
This combination of factors ensures 5-Star 🌟 homes and 5-star reviews. As the number of reviews increases, demand increases. As demand increases, we can increase rates. And the owner’s income increases.
We fill the glass of opportunity, allowed by the owner.
It can be easy.
We might not be the biggest, but we strive to be the best. And we believe we are close. Our focus is on what adds value. Always.
BTW: Do you agree with me? Use the comment area and share your experiences with me…