The other day we received this email from an owner in Simonstown looking for an Airbnb management agency.
I’m trying to establish the pros and cons of renting my (Simonstown) Seaforth cottage short or long term. I don’t want the hassle of short-term so wanted to chat with you about your services and costs etc.
The owner sent a description and shared a few photos.
It is a lovely cottage 2 minutes from Seaforth Beach Simonstown.
The location is a winner. The cottage has great potential but not yet remarkable as it was never rented as short term property.
We replied to the owner:
It looks like an interesting place.
- I think it can do well.
- But this will depend on the level of quality features and fittings.
- Location is great.
One of the qualifying questions I need to ask is what annual income you intent to get from any type of rental?
We can then take this, input it into our short term rate calculator and see if we can generate this annual income at 40% occupancy.
So let us know your ideal minimum annual income.
Here are two articles on how we work and our terms and conditions.
If you have read these and are mostly happy then we can arrange to meet.
The owner got back and said he expected to make at least what he made with long term rentals. But he does not want the issues he had with long term.
…..it’s also no joke being stuck with a lousy [long term] tenant
Making money with short term can be easy.
It is very possible to beat your goals at about 40% occupancy. You therefore you can mine, in the future, a potential of 60%. With long term you don’t have this upside. But the upside depends on the ideas below.
CapeHolidays are not in the very-possible-business.
We only work on and expect remarkability.
If not we (your property) will drown in boringness and become a commodity.
We are, also, not in the commoditization business.
If your place cannot be remarkable (features, fittings, guest liaison, marketing (photos description etc) then it would be waste of time for us to try and assist you.
I have said many times that Airbnb has reduced short term rental to a commodity.
And our task is to lift all our Airbnb management properties out of that pit of ordinariness.
We Want Airbnb Plus For All Our Management Properties:
Most of our properties on Airbnb are already selected as Airbnb Plus (read more here). We therefore expect your place to be Airbnb Plus as well.
What I have seen; I know your place has the potential, and the location is great.
….. depending on the above remarkability issues that you can double your annual income and that’s the place where we operate.
Making it remarkable we will sooner be able to see an occupancy increase which leads to rate increases and starting the snowball to double your annual income.
Again if you agree with our way of operation, and our expectations then we can meet to discuss how to proceed with your Simonstown Property on Airbnb and other.