How To School Holiday Rent My Cape Town Home- FAQs
Local Cape Town schools have a six-week break during December and January. For those who own a nice home in Cape Town, this is an opportunity to earn extra income by renting their property while the owner takes a break.
Many Cape Town “school holiday” owners want to rent their home but they don’t know-how. They think they will need to take care of it themselves. They also think it may be difficult to charge correct rates, so they are unsure about the best way to do this. But there is help! There are people with them.
You can read that it’s a difficult task to match the expectations of “school holiday” owners, and the impact of expecting guests (with a managing agent if you want to use one).
When managing an annually available Cape Town holiday home, feedback loops vary–the house becomes more guest-ready or foolproof. Owners also learn everything there is to know about their property. The same is not true for infrequent owners and thorough checks are required to ensure guests and owners are happy.
I regularly get questions like, “Are you taking a big enough breakage deposit?”
Injuries, accidents and your liability seem to be on the back burner.
But let me answer your breakage deposit concern first.
As an owner, you want to protect your belongings against breakages. You can throw money at the problem or you make it as foolproof as possible.
After a thorough foolproof audit and making changes, the next defense is a breakage deposit.
How high should the breakage be to cover your home? Can you consider any figure you believe is high enough?
Okay. You decide to hit them hard with a high breakage deposit. But the consequence is; no more bookings. Nothing.
Obviously, we need to consider the risk. How many breakages occur and how severe are they?
- How often do we claim for breakages from guests? Probably less than 1%.
- Has our conservative breakage deposit covered these breakages? 99% of the time.
Instead of limiting or stopping bookings it’s our view to get a breakage deposit about equal to one day’s rates during high season.
But you may be risk-averse and want more. Your only choice (not really a choice) is to get your short term insurer involved. You must tell him you do short term accommodation and want insurance for breakages, accidents and liability claims.
Let’s get back to breakages:
- If breakage is more than the deposit, then insurance must kick in. It’s easier than taking legal action against the guest.
- If another non-guest with access to the home breaks something or has an accident the insurance must cover the loss.
- Obviously, if it is malicious damage the owner can take legal action.
- Get insurance and third-party liability insurance.
- Set a reasonable breakage deposit.
- Do a foolproof audit. And act on it.
In general, short term rental accommodation business is easy if you do the common sense issues well. They are simple. But relentlessly risky if skimped.
P.S. If it can break it will break. This does not mean we must change to plastic plates and glasses. Everyday use items must be easily replaceable in the blink of an eye. To claim from a guest for such accidental breakages is not ideal.
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