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.

Why Should I Choose Cape Holidays If I Can Airbnb It Myself?

Great question.

If You Can Do It! Do It!

The Question is Can You? Or  Do You Want To?  

More on the topic
Should I list With A SuperHost?
Must Read: What do we provide for the commission we take?

If you can list your accommodation on Airbnb and manage it yourself then it’s best you do it yourself because;

  1. Your Airbnb management costs (change over cost) should be less as you will not have to pay to use our professional SuperHost Cape Town Airbnb management services.
  2. You will have to perform at least 20% better the Cape Town average occupancy.
  3. You may have a lot of free time and this can be an adventurous challenge to try out.
  4. You may prefer to control who has access to your home as many homeowners don’t like being told by an agency how it should be done.

On the other hand an Airbnb Agent in Cape Town like Agency. Capeholidays may assist you better if the following are important?

  1. From day one your home – if qualified – is in the hands of a trusted Cape Town SuperHost (read more here) with nearly 1000 5 star reviews.
  2. I said, above, we at least get 20% more than the Cape Town norm. If it’s an extraordinary excellent home it may even do better. Have a look at Mbali at 87% occupancy where the norm is 34% by other hosts, Mbali was 40% when we took it over from another agency and then 27 days booked for December. Obviously I choose one of the best homes to share with you.  airbnboccupancycapetown
  3. Yes, the change over costs will be higher but your home is in the hands of professional Airbnb agents or Airbnb SuperHosts.
  4. Flexibility, liaison and personal availability 24/7; you will not have to worry about going away and being online all day long answering guests, liaising with guests or handling critical guests.

After all that is said and done; we believe it’s better for a Cape Town homeowner to try to become a SuperHost if they believe they have the time and attitude. If not, they may always feel a bit of resentment and that will not be ideal for our Agent & Owner relationship. We have been there. It’s not ideal. But when we have mutual trust we make a winning team.  

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.

Why Should I Choose Cape Holidays If I Can Airbnb It Myself?

Great question.

If You Can Do It! Do It!

The Question is Can You? Or  Do You Want To?  

More on the topic
Should I list With A SuperHost?
Must Read: What do we provide for the commission we take?

If you can list your accommodation on Airbnb and manage it yourself then it’s best you do it yourself because;

  1. Your Airbnb management costs (change over cost) should be less as you will not have to pay to use our professional SuperHost Cape Town Airbnb management services.
  2. You will have to perform at least 20% better the Cape Town average occupancy.
  3. You may have a lot of free time and this can be an adventurous challenge to try out.
  4. You may prefer to control who has access to your home as many homeowners don’t like being told by an agency how it should be done.

On the other hand an Airbnb Agent in Cape Town like Agency. Capeholidays may assist you better if the following are important?

  1. From day one your home – if qualified – is in the hands of a trusted Cape Town SuperHost (read more here) with nearly 1000 5 star reviews.
  2. I said, above, we at least get 20% more than the Cape Town norm. If it’s an extraordinary excellent home it may even do better. Have a look at Mbali at 87% occupancy where the norm is 34% by other hosts, Mbali was 40% when we took it over from another agency and then 27 days booked for December. Obviously I choose one of the best homes to share with you.  airbnboccupancycapetown
  3. Yes, the change over costs will be higher but your home is in the hands of professional Airbnb agents or Airbnb SuperHosts.
  4. Flexibility, liaison and personal availability 24/7; you will not have to worry about going away and being online all day long answering guests, liaising with guests or handling critical guests.

After all that is said and done; we believe it’s better for a Cape Town homeowner to try to become a SuperHost if they believe they have the time and attitude. If not, they may always feel a bit of resentment and that will not be ideal for our Agent & Owner relationship. We have been there. It’s not ideal. But when we have mutual trust we make a winning team.  

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. 

Our Cape Town Airbnb management services are ideal for homeowners who  can not or are not interested in marketing or managing their own property. 

More on the topic
Should I list CapeHolidays If I Can Do Airbnb Myself?
What do we provide for the commission we take?

Let me ask you a few questions to qualify your needs:

  1. Can you manage your own home and ensure a 5 Star rating for each and every guest staying? Can you enjoy your holiday away while guests demand attention? Can you be very responsive to guests? Are you willing to liaise with guests 24/7? Are you willing to negotiate with guests, resolve conflicts when it occurs?
  2. Do you know how to set  marketing policies to get the best possible return on your investment?  For example; setting the competitive rates, setting correct seasonal length of stays, protecting your home with the best possible cancellation policy?
  3. Can you generate 20% more income than the average Cape Townian using Airbnb? (Our occupancy is consistently 20% more than the average. Most are 35% and higher).
  4. Do you have on-demand maintenance people who will fix things there and then ensure you don’t get guest revenge when you are slow to act?
  5. Can you supervise maintenance work etc to your home 24/7?

If you answered  yes to many of these then it’s better you manage and market your own home.  You don’t need us. 

However, if you cannot manage/market then our management and marketing skills will bring you,  hassle free , at least 20% more income.

Our experience from 2009 will give you a better chance of renting your home for a fair price. 

Compare our management costs with other great Cape Town Agents.

Other Cape Town agent’s commission is as much as ours or more. And they have a monthly management retainer as well.  If these agencies have bookings or not you pay the retainer.  

However, if we don’t get bookings you pay zero.

Zero commission and zero management fees.

Is this fair or would you rather pay us a monthly retainer for doing nothing?

Don’t you think our model, of management fees per incident, ensure we focus on rather renting your home for the best possible deal than collecting monthly retainers?

Our  management function is exclusively available to you at cost .

There is no profit for us on management. Our managers get paid each cent we claim for management. 

Note: guests pays an additional fee for the change over management incidents. It covers about 80% of the management cost. 

No incidents! You pay nothing.

  •  We can unhassle your holiday home .
  • And you have to do virtually nothing.
  • The home will generate a healthy income while it’s maintained and improved at all times; while you focus on peace of mind.

For this, our homeowners choose peace of mind.

BTW: We are striving to be the best but we are not there yet.

If not we would not have grown our portfolio with very many happy owners.

Interesting: Why would our owners send us messages like this if we are not making a difference?

Airbnb agency cape town



Why Should I Choose Cape Holidays If I Can Airbnb It Myself?

Great question.

If You Can Do It! Do It!

The Question is Can You? Or  Do You Want To?  

More on the topic
Should I list With A SuperHost?
Must Read: What do we provide for the commission we take?

If you can list your accommodation on Airbnb and manage it yourself then it’s best you do it yourself because;

  1. Your Airbnb management costs (change over cost) should be less as you will not have to pay to use our professional SuperHost Cape Town Airbnb management services.
  2. You will have to perform at least 20% better the Cape Town average occupancy.
  3. You may have a lot of free time and this can be an adventurous challenge to try out.
  4. You may prefer to control who has access to your home as many homeowners don’t like being told by an agency how it should be done.

On the other hand an Airbnb Agent in Cape Town like Agency. Capeholidays may assist you better if the following are important?

  1. From day one your home – if qualified – is in the hands of a trusted Cape Town SuperHost (read more here) with nearly 1000 5 star reviews.
  2. I said, above, we at least get 20% more than the Cape Town norm. If it’s an extraordinary excellent home it may even do better. Have a look at Mbali at 87% occupancy where the norm is 34% by other hosts, Mbali was 40% when we took it over from another agency and then 27 days booked for December. Obviously I choose one of the best homes to share with you.  airbnboccupancycapetown
  3. Yes, the change over costs will be higher but your home is in the hands of professional Airbnb agents or Airbnb SuperHosts.
  4. Flexibility, liaison and personal availability 24/7; you will not have to worry about going away and being online all day long answering guests, liaising with guests or handling critical guests.

After all that is said and done; we believe it’s better for a Cape Town homeowner to try to become a SuperHost if they believe they have the time and attitude. If not, they may always feel a bit of resentment and that will not be ideal for our Agent & Owner relationship. We have been there. It’s not ideal. But when we have mutual trust we make a winning team.  

CapeHoliday’s Accommodation Management Costs

    1. The explanation: cost drivers.

    2. Video: cash flow; income, expenses, reservations, payments and expense summaries.

    3. Add the Spreadsheet To Your Mobile Home Screen. 

Our business success is not driven by charging owners a management fee. Our management fee is, most paid by the guests. Guests pay a fixed fee per booking. This covers most of the management costs associated with a booking. We try and maximise this fee paid by the guest to limit costs to the owner. This is not always possible. 

airbnb-money-saving-tip

 

Explanation of Costs.

Owners who utilize CapeHolidays Management Agency are obviously interested in costs to manage their Cape Town holiday accommodation. And it can be confusing. So, let me try and explain. 

Most Accommodation Management companies in Cape Town requires a fixed management fee per month.  In our case, we don’t.  We could not see why we need to charge owners a fee if there is no activity at the home. This is why our management fee is the cost per incident.

The major cost management drivers (change over cost) are:

  1. Meeting and greeting guests.
  2. Change over costs includes laundry, cleaning the home, and replenishing essentials (Olive oil, toilet paper, salt & pepper, coffee, tea, etc). As this is self-catering essentials are stocked just to see the guest over for a day or two – a starter pack.

How much are the actual incident fees? This depends on the home but the minimum is currently R400 per incident. But can be different depending on the house. It can change at any time. And owners will be informed if it does. Again, I must stress most of these costs are attached to the booking fee the guests pays in addition to the daily rates.

All costs; every day running the home is not included. These not-included fees are, but are not limited to, rates and taxes, Internet, DSTV, pool, electricity, etc.

The change over cost is per booking. Each booking has at least one meet, greet, and clean. The variables costs are; laundry, consumables, extra service and window cleaning, upholstery- and carpet cleaning (if and when needed).

You may ask, “why does the change-over-fee not cover all the costs?” The problem is not that we can increase the change over fee but we must consider the total rate the guest is willing to pay. We, therefore, make the fee “just enough”. 

When we get paid by the guest we deduct our commission and pay you the total excluding the change-over fee. The change-over-fee is credited to your account. This means you get it but it’s not paid to you directly but used to cover costs. 

When we get invoiced by the contractors (meeting, greeting, laundry, etc) we debit this change-over-credit. 

Most of the time the change-over fee will not cover the full services rendered, and the reason why we keep a kitty for these costs. 

Let me summarise:

  1. The guest pays the rental fee plus a change-over fee.
  2. After we deduct our commission and we credit your account with the rental amount and the change-over fee. 
  3. When and if we get an invoice from our contractors for each incident – for example; meeting, greeting, cleaning, laundry, etc., we indicate the reason for the cost and debit against your account. 

The actual change-over-fee and per-incident management costs are shared with the owner as soon as we have met and discussed the home and the individual owner’s needs.

Video Explaining CapeHoliday’s Accommodation Management Costs

Finding The Cash Flow Spreadsheet when you need it?

It is very simple to do on your mobile phone. You can also add it to your desktop computer but today I’ll only share how to save it on your mobile Home Screen!

Steps:

  1. You get the Cash Flow via email from CapeHolidays
  2. Open the email and click on the button “Cash Flow” while using your mobile phone or e-pad.
  3. It will open in Google Sheets.
  4. If you use an Android Phone (Samsung, and other) watch this 1-minute long video to save where you can get it.
  5. If you use an iPhone or similar watch this short video on how to save this sheet to your mobile home screen.
  6. Now you have a button on your phone with access to the Cash Flow every minute of every day.

 


 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.