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.
|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.
What is the Airbnb hosting risks?
New Airbnb owners should be aware of the Airbnb hosting risks and do something to limit it.
NOTE: In general, you may never even encounter any of these issues. Reading about these risks may scare many owners. If that is the case then you make take this as an absolute. It’s not. The risks are very low.
Let’s consider a list of risks of hosting Airbnb guests and solutions here:
Get Your Free Unhassle Airbnb eBook Here
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.
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.
We have compiled an extensive Airbnb Manager Operating Manual
This manual is a guideline and not limited in any way. As we identify other relevant manager tasks we will update these tasks. The extensive manual with manager tasks is available for owners who agreed to our T&Cs and Agency.CapeHolidays Managers. It should be read with the house rules, house manual, and domestic responsibilities.
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.
Get Your Free Unhassle Airbnb eBook Here
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).
When you click this button a new page will open.
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.