FAQ: Agency.CapeHolidays Management Services
These FAQ’s are listed from the most popular as read by readers.
FAQ’s Excellent question, “how much can I make on Airbnb?” when you intend to list on Airbnb. But what about the Airbnb income calculator? You get some great Airbnb profitability calculators; they tend to only use your property address and the number of bedrooms to calculate your Airbnb profitability. Well, let’s look at…. Airbnb’s own free calculator. For example; look at a two-bedroom in Cape Town. Airbnb suggests a monthly R26 531 (or +R300 000 or $22000 per annum). This is optimistic, to say the least. What about occupancy? I see the norm is a low 37% occupancy. Did they calculate this income at 100% occupancy? I just have too many questions. And you should as well. Personally, I believe the calculators may be designed to lull you into listing your accommodation as very few people in Cape Town would not list their accommodation on Airbnb if they can get the above. You may even consider buying a property because of the high potential Airbnb income. Mistake. We believe you must crawl before you run. And let’s rather be conservative. And consider other factors as well. Your potential income cannot be based on your neigbourhood and number of rooms only; yes, it’s a good start but what about the host’s attitude towards guests, your rules (minimum stays, cancellation policy, discounts, etc.), your location in relation to the beach (or related major attractions), pool, jacuzzi, features, willingness to invest in staging and professional photos? And the list of critical Airbnb income drivers grows. It is for this reason that we developed an in house Airbnb quiz to try and determine if your Airbnb accommodation will make money. No bull. The quiz, obviously, depends on your honesty. But the verdict will be better than using an Airbnb profitability calculator. It may not answer your question; How much can I make on Airbnb? Calculator. No. But when you get the results from the Airbnb Profitability Quiz you will know; if your Airbnb accommodation will make money or not and what you need to correct it. An Owner Pieter recommended Sandra and husband John. Around the dining table, they heard about the slug of money Pieter got renting his home over peak. The one couple got easy money over Christmas and the others wanted to be part of the rainbow. Sandra showed us their upmarket apartment close to the beach. It was not guest ready yet. But we assisted in staging the accommodation and the photos were really great. This is going to be a winner. We sent them the T&Cs to read, discuss, agree, sign and send back. Nothing. Eventually, we got an email; We know Peter who has a property that you have rented over the high season period. We are comfortable with a similar arrangement with our property. Long story short; the: similar arrangement was based on a handshake. Although low incidence, renting out accommodation has various risks. And things had to change. Easy verbal arrangements are great and easy but…. Various parties with different expectations make it difficult to just shake hands on hope for the best: The rare incidents can be severe. Let me explain: Since starting out Cape Town Management Agency during 2009 we only had three cancellations due to extenuating circumstances. All during 2019. An insignificant issue as measured in incidence and 4% in value. The three owners feeling the burn and are now out of pocket. These cancellations occur last minute. And in most cases, guests book at least two months in advance. Meaning; we will not get another booking. Two of the affected owners, we paid a substantial amount, said they were not aware we market their home on Airbnb and did not realise the risk. One owner asked us to share the risks in more detail. Obviously, this is one example of many. An agreement has various purposes: Our Terms and conditions are general. It may not cover all your specific needs. Certain clauses are negotiable others not. We can add, and adapt some.
Why Keep A Management Kitty? Note: Your Cash Flow statement is up to date 24/7 and shows you at any time what is in the kitty and what money is outstanding at any time. Nothing else and nothing less. We are all nice people with a twist. Some twists are not pleasant. Therefore being nice when we have to write an honest negative review is not easy. But it must be done. Unfortunately, when we give the guests a dishonest positive review we defy the objective of building trust. Future hosts depend on an honest review from previous hosts. You depend on it. As they say, “what goes around comes around”. We have had a case where 4 guys booked into a home with 4 great reviews. They were proper con artists and had parties every night. The last night they had [arranged?] a break-in . This puts the owner on the spot and he does not want a bad review with comments about a break-in. And then the hosts either not review they guys or shake hands and agree to share only positive stuff. Well. We did not. We said they are not recommended. And we blocked them. BTW: These guests never laid a complaint with Airbnb or the police. Who would not complain after a break-in? Odd. And we expect our owners who manage to give us the truth as we know you want us to only send you good guys. When you review a guest consider the following criteria: The list below may be typical but only the minimum. Each homeowner must take this list and complete it specifically to their own home. When owners have additional house rules the newly updated listed must be emailed to Agency.CapeHolidays.Info where the agent will add it to online listings of the property. This answer is specific to owners who only rent out during school holidays. Here are some of the responsibilities of the domestic. For any deviation, the appointed manager must be notified immediately. Below are 15 minimum functions for the domestic. Available to Agency.CapeHolidays homeowners and management staff. Be friendly, be accommodating, be FIRM! We want a 5 Star review but our integrity is not for sale. With compiled a proformal manual for you to adapt. The manual is not final. It’s the minimum required. |
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