100's Of Winning Tips On How To: Setting Up A Self-Catering Accommodation Business In Cape Town  | Cape Town Airbnb Management Agency
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100’s Of Winning Tips On How To: Setting Up A Self-Catering Accommodation Business In Cape Town 

Questions and Answers About Setting Up A Self-Catering Accommodation Business In Cape Town   

If you’re looking for a way to make money from your Cape Town holiday home, then read on.

Starting a self-catering accommodation business In Cape Town is all about being informed. But where do you start?

You can start by deciding whether you want to manage and market yourself or use an agency. There are pros and cons of each option so it’s important to think about what will work best for your situation. Talking about cons; what are the risks?

Once you’ve made that decision, the next step is figuring out how much time and energy you have available to dedicate towards managing your property. Do you have enough time? Are there any other commitments in your life that might get in the way? These are all things worth considering before taking on this project.

Read these frequently asked questions for in-depth information about starting up a self-catering accommodation business in Cape Town!

Let’s look at the questions and answers you may have to set up your Cape Town Airbnb accommodation business.

Questions and Answers About Setting Up A Self-Catering Accommodation Business In Cape Town 

Setting Up A Self-Catering Accommodation Business In Cape Town

Table Of Contents: Setting Up A Self-Catering Accommodation Business In Cape Town 
1. Setting Up A Self-Catering Airbnb
2. How To Make Money With Airbnb
3. How To Manage An Airbnb
4. T&Cs | Rules | Protection
5. Only School Holiday Owners

Setting Up A Self-Catering Airbnb Accommodation Business In Cape Town  

There are many benefits to starting up a self-catering accommodation business in Cape Town, but it’s important not to base your decision on purely financial incentives. A successful host, especially a SuperHost, can make money from Airbnb. But you must study it well. Ignorant is no excuse.

 There Are Other Ways To Reduce Risk: Discrimination Is Absolute Useless As A Measure!

The age of people, their sexual orientation, the colour of their skin, their physical inabilities, etc. do not define if they will trample your home, or expose you to risk. 

 Risk comes in all possible disguises.   
Read more on vetting guests

You can set an age limit for kids. But that’s about it. You can share liability risks. But only the guest can decide on your honest rules and warnings that will lower expectations.

Today, with Airbnb-homeowner and guest reviews you  get a legal way to discriminate between good and bad 

Consider Transparency As Your Risk Reducing Measure!

Bad Airbnb guests have previous public reviews. And if they are not good you don’t have to accept their booking. If they have no reviews you can try and qualify them. But  there is no obligation to accommodate zero-reviewed-guest. .

We have found the change in guests behaviour pre and post the arrival of Airbnb significant. In the past guests would have very little respect. Today they care. Even owners have jacked up their offering.  Because no one gets away with bad stuff today.  

Transparency: Guests do care about their public profile.

The solution today is not discrimination; the real issue is rather: from which marketing site does the guest originate from? If the guest is an Airbnb referral the risk is less than when compared to any other website where there are no social profile risks | no real transparency.

NOTE: There is no foolproof way. Things can go wrong. And the way this world operates it will go wrong. But we should always try to minimise risk. 

airbnb-discrimination

 

Setting Low Airbnb Rates

The short answer: NO!

This is a common concern for new owners. As we implement our trust-building phase we use competitive rates to attract reluctant guests to stay and get reviews at the new accommodation. 

The Consequences of AirBnB’s Commoditization On Rates

It’s only after new owners become familiar with the painful reality and impact of AirBnB’s commoditization of the short term accommodation market, that they change their mind about our setting low Airbnb rates philosophy. 

After this introduction let me address the concern about setting low Airbnb rates equaling bad guests

When we talk about setting low Airbnb rates to buy trust we are talking about competitive rates only and not Rock-bottom rates. 

As you know, we don’t have the accommodation seeker’s trust yet, and we must use our only effective driver, namely setting low Airbnb rates, to overcome resistance to book. 

The guests who book initially are the same guest who may pay a premium rate tomorrow. But with no reviews (trust) forget it. 

Only a remarkable holiday home at a bargain will do. 

In the market we operate, guests are not poor. 

Let me make a statement based on experience. 

Even if the rates are competitive you still get great guests. 

Now let me share why I say this:

The real risk is not bad guests but rather uneducated guests. With today’s social media profiles guests cannot hide any longer. 

And Forbes did a great job of explaining why guests’ requests to stay are sometimes declined more here.

We started our business in 2009. This was before social media. And many people left homes untidy as there was no recourse. Even owners got away with shoddy offerings. 

Today Your Social Profile Is A Valuable Asset

When a guest book and stay they review us. And these positive reviews made us SuperHosts. Trust! As guests depart we review them. And they establish trusting profiles over time. Today we all know the consequences of a bad review for both parties. 

Let me repeat: Even if the rate is competitive no guests will risk getting a bad review knowing other hosts will not approve them with a  bad previous review. 

The only risk for us is first time users on Airbnb. Unfortunately, they are not familiar with the implications of getting a bad review and how it impacts their future ability to use Airbnb. And some of them, ignorantly, will not leave the property in the same clean state they received it. 

When they get hit with a bad review they never again treat any Airbnb place poorly. And if they do they get blocked. 

Our challenge is to make it as difficult for new guests to book without first qualifying (See Forbes article above) them and then we educate them on what we expect. 

To answer the question: No. Competitive setting low Airbnb rates are not the cause of bad guests. Bad guests are mostly new guests unfamiliar with their responsibility.

How To Make Money With Airbnb Accommodation Business In Cape Town 

You’ll read a lot of different opinions about making money with Airbnb. The following are some of the opinions you’ll likely read, and what they mean. 

What is import? Trust. If you ignore trust with your guests you are going to fail. If your Airbnb guests don’t give you 5-star reviews – regularly you will be just another average Joe. You will read there is, nearly, a direct relationship between the number of reviews and occupancy. Get those reviews in quickly. Why quickly? Airbnb likes action. A dormant holiday home in Cape Town or anywhere is a waste; they’ll dump you to the bottom. 

Obviously, Agency.CapeHolidays Management is biased but we are not really interested in managing a home the owner can manage herself. This should not stop us from giving you advice. So read what we share with this in mind.

Read these FAQ’s on setting up a self-catering accommodation business in Cape Town to profit.

Setting Low Airbnb Rates

The short answer: NO!

This is a common concern for new owners. As we implement our trust-building phase we use competitive rates to attract reluctant guests to stay and get reviews at the new accommodation. 

The Consequences of AirBnB’s Commoditization On Rates

It’s only after new owners become familiar with the painful reality and impact of AirBnB’s commoditization of the short term accommodation market, that they change their mind about our setting low Airbnb rates philosophy. 

After this introduction let me address the concern about setting low Airbnb rates equaling bad guests

When we talk about setting low Airbnb rates to buy trust we are talking about competitive rates only and not Rock-bottom rates. 

As you know, we don’t have the accommodation seeker’s trust yet, and we must use our only effective driver, namely setting low Airbnb rates, to overcome resistance to book. 

The guests who book initially are the same guest who may pay a premium rate tomorrow. But with no reviews (trust) forget it. 

Only a remarkable holiday home at a bargain will do. 

In the market we operate, guests are not poor. 

Let me make a statement based on experience. 

Even if the rates are competitive you still get great guests. 

Now let me share why I say this:

The real risk is not bad guests but rather uneducated guests. With today’s social media profiles guests cannot hide any longer. 

And Forbes did a great job of explaining why guests’ requests to stay are sometimes declined more here.

We started our business in 2009. This was before social media. And many people left homes untidy as there was no recourse. Even owners got away with shoddy offerings. 

Today Your Social Profile Is A Valuable Asset

When a guest book and stay they review us. And these positive reviews made us SuperHosts. Trust! As guests depart we review them. And they establish trusting profiles over time. Today we all know the consequences of a bad review for both parties. 

Let me repeat: Even if the rate is competitive no guests will risk getting a bad review knowing other hosts will not approve them with a  bad previous review. 

The only risk for us is first time users on Airbnb. Unfortunately, they are not familiar with the implications of getting a bad review and how it impacts their future ability to use Airbnb. And some of them, ignorantly, will not leave the property in the same clean state they received it. 

When they get hit with a bad review they never again treat any Airbnb place poorly. And if they do they get blocked. 

Our challenge is to make it as difficult for new guests to book without first qualifying (See Forbes article above) them and then we educate them on what we expect. 

To answer the question: No. Competitive setting low Airbnb rates are not the cause of bad guests. Bad guests are mostly new guests unfamiliar with their responsibility.

How To Manage An Airbnb Accommodation Business In Cape Town

A holiday home in Cape Town can be managed by the host. A good host is someone who has a good attitude and is able to talk to guests; banking goodwill.

Managing hosts also need to set expectations for the guests that they are hosting and get five-star reviews from those people.

If you want to have a self-catering home, you should know how to manage time, resources extremely well. If not, it could become a disaster. Guests don’t mind a mistake but they will take revenge (bad review) if you are not responsive.

You need to meet people when they get here. You will show them the key amenities, like where is the pool or laundry room. You will also tell them about any other facilities, like WiFi codes. Setting expectations. If you are timid and afraid they will take advantage. Be firm but friendly.

Read these FAQ’s on setting up a self-catering accommodation business in Cape Town to manage it effectively. 

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. 

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Be friendly, be accommodating, be FIRM!

We want a 5 Star review but our integrity is not for sale.

Typical Airbnb House Rules.

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.

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The above list of minimum Airbnb House rules must be read by owners with the house manual, domestic person’s tasks and manager task manual.

  1. Never have a phone available to guests. You cannot control any calls made by guests other than limiting it to local phone calls. If you don’t set it up for local calls only remove the handset and lock the ports.
  2. Internet is a must. Ensure you have uncapped.

PS. Never ever use Telkom for anything. Nothing. Cancel Telkom and ask us for alternatives.

Category: Management FAQs

 

Self-Catering Accommodation Business In Cape Town: T&Cs | Rules | Protection

Managing a Cape Town self-catering holiday home has its risks, fears, and worries. You read bad press about parties, people occupying houses, theft, and whatnot. Without getting way out-philosophical;

A ship in port is safe; but that is not what ships are built for. This saying has also been credited to Albert Einstein and John A. Shedd..  

You have to address the risks, do foolproof audits, set up systems to reduce risk. Never assume. Fools like hosts who make assumptions.

The following FAQs are for owners who want an agency to manage but you can pick and choose what to read. Adapt it for your Cape Town self-catering business. And make it better.

Read these FAQ’s on setting up a self-catering accommodation business in Cape Town to make it foolproof (if there is such a perfect home – we should try).

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How To Short Term Rent My Cape Town Holiday Home During School Holidays Only?

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 are worried about the work that goes into it. They’re also unsure of how to manage their home, and whether or not they should charge in a different currency. These people need someone with the infrastructure and marketing skills to help them rent their home on Airbnb. It’s not difficult when renting online but when it comes to pricing and management, guest liaison, checking on guests, parties, etc. they may decide that it’s too much for them.

You may read that it’s difficult to match the expectations of “school holiday” owners, and the impact of expecting guests. When you manage an annually available Cape Town holiday home you have various feedback loops; the house becomes more guest-ready or foolproof. Owners also learn the ins and outs.

I suggest owners ensure they are fully aware; high expectations will be deflated if the owner lives in a perfect world. Read as much as possible. We also share a Terms & Conditions dedicated to “School Holiday Owners” specifically. The T&Cs is designed to highlight the issues you may encounter.

Read these FAQ’s on setting up a self-catering accommodation business in Cape Town for owners with kids at school; meaning the home is only available during school holidays.