Can You Explain CapeHolidays Accommodation Management Costs?

CapeHolidays Accommodation Management Costs

    1. The explanation: cost drivers.

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Owners will pay a service fee (see all the functions). There is also a management fee. But guests pay a once-off fee on top of their rates towards the changeover cost. 

We credit the changeover fee to the owner; and then debit the meeting, greeting of guests, cleaning, linen change and essentials against this fee. 

Explanation of Costs.

Most Accommodation Management companies in Cape Town require a fixed management fee per month. In our case, we don’t. We could not see why we need to charge owners a fee if there was no activity at the home. Therefore, our management fee is the cost per incident.

The major cost management drivers (changeover cost) are:

  1. Meeting and greeting guests.
  2. Change over costs include laundry, cleaning the home, and replenishing essentials (Olive oil, toilet paper, salt & pepper, coffee, tea, etc). As this is self-catering, essentials are stocked just to see the guest over for a day or two – a starter pack.

How much are the actual incident fees?

This depends on the home, but the minimum is currently R400 per incident. But can be different depending on the house. It can change. And we will inform owners if it does. 

Not included are all running costs. These not-included fees are, but are not limited to, rates and taxes, Internet, DSTV, pool, electricity, etc.

The changeover cost is per booking. Each booking has at least one meet, greet, and clean. The variables costs are; laundry, consumables, extra service and window cleaning, upholstery- and carpet cleaning (if needed).

When we get paid by the guest, we deduct our commission and pay you the total, excluding the change-over fee. We credit the changeover fee to your account. This means you get it but it’s not paid to you directly but used to cover costs. 

When we get invoiced by the contractors (meeting, greeting, laundry, etc) we debit this change-over-credit. 

Most of the time the change-over fee will not cover the full services rendered, and the reason why we keep a kitty for these costs. 

Let me summarise:

  1. The guest pays the rental fee plus a change-over fee.
  2. After we deduct our commission and we credit your account with the rental amount and the change-over fee. 
  3. When and if we get an invoice from our hosts for each incident – for example; meeting, greeting, cleaning, laundry, etc., we indicate the reason for the cost and debit against your account. 

The actual change-over-fee and per-incident management costs are shared with the owner as soon as we have met and discussed the home and the individual owner’s needs.

Video Explaining CapeHoliday’s Accommodation Management Costs


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