100's Of Winning Tips On How To: Setting Up A Self-Catering Accommodation Business In Cape Town  | Cape Town Airbnb Management Agency
Call Us Today: +27-82-955 6464

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.

As you may have read, Agency.CapeHolidays.Info kicked off during 2009.

During this time we have had a few experiences we would not wish upon our worst enemies. Luckily we can count these bad experiences on two hands.

Some ridiculous, some funny and others; close to madness. Use the links below to read more.

Is Your Airbnb Ready For Guests?

Airbnb Ready For Guests books remarkable accommodation before they book home with poor photos, boring interior. Homes don’t have to be luxury but everyone walking in should know this is a unique place! We believe…..

If it’s not remarkable it’s not good enough. From start to finish, we try to think about designing a more remarkable experience.

  1. We must do an audit of the home before we list it. This audit is like ensuring our (with you we are a team) investment against bad reviews – it’s not foolproof but does eliminate most nasty surprises. (Why do you need at least 40 reviews? more here) 
  2. Foolproof: If it can break it will break. Your long hair white carpet is a serious fool failure. Your crystal glasses are cool but why? Guests will use and break them – mostly not on purpose. Why not rather use excellent generics we can replace easily? Steps; are they dangerous? Can you add a gate to prevent accidents? Do it! Do a foolproof audit.
    Read more on Foolproof Audit
    What to check for when doing a foolproof audit – get it here.
  3. Fumigate: If you live in the home and it’s only available during holidays; fumigate! Cockroaches are very expensive insects! Dogs, and cats? Fumigate; fleas are also expensive mistakes. And you will refund Airbnb ready For guests whatever your agent negotiates on your behalf. No questions asked! Just refund! 
  4. Owners Having To Open Their Home: Some owners initially find it difficult to contemplate guests will use their home and to trust their agents who control their homes.  
  5. Limited features; proper WiFi is non-negotiable, Netflix, TV, Nespresso, BBQ, sharp knives, extra blankets in the lounge for cold winters,  etc. 
  6. The above goes hand in hand with the continued improvements. Guests regularly recommend things. We don’t compromise on these as they improve profitability.
  7. Staging of a home: without staging, guests may not be able to imagine how they could use your home. Professional photos of a staged home is the way to go. The only way for us.
  8. We have created a free tool where you can establish if you (owner) has the right attitude to succeed and if your home has what it takes to succeed.  Complete this free Airbnb Profitability quiz here.
airbnb-foolproof-audit

 Underestimate The Ingenuity of Complete Fools.    

This is really well said. In the Airbnb shorter rental business we cannot be more vigilant to the ingenuity of complete fools
When I use the word fool it’s not intended as a judgment; the intention is to rather say, ignorant person. Ignorant in its actions and choices. And these actions and decisions can be the  cause of serious damages and costs .  
All we need is to do what is reasonable to counteract these fools. Understanding we will never cover all ingenuity of complete fools. We, therefore, those owners do a foolproof audit. And keep on fine-tuning it. 

List of possible issues to recover during your foolproof audit.

Fool Proof Checks

Protected Area

This content is password-protected. Please verify with a password to unlock the content.

ps loader
In general, you want to replace expensive things with quality but easily replaceable items.
The most critical of these listed issues must be shared to your manager to add to the listing, where guests book as they must take responsibility for staying knowing about potential risks, and in your house manual and rules.

Our Airbnb holiday accommodation is all remarkable.

They don’t have to be luxury but everyone walking in should say WOW! If it’s not, it’s not good enough. From start to finish, we try to think about designing a more remarkable experience.  

Read more on Foolproof Audit
What to check for when doing a foolproof audit – get it here.
  1. We must do an audit of the home before we list it. This audit ensures the investment against bad reviews – it’s not foolproof but does eliminate most nasty surprises. (Why do you need at least 40 reviews?) 
  2. Foolproof: If it can break it will break. Your long hair white carpet is a serious fool failure. Your crystal glasses are cool but why? Guests will use and break them – mostly not on purpose. Why not rather use excellent generics we can replace easily? Steps; are they dangerous? Can you add a gate to prevent accidents? Do it! Do a foolproof audit.
  3. Fumigate: If you live in the home and it’s only available during holidays; fumigate! Cockroaches are very expensive insects! Dogs, and cats? Fumigate; fleas are also expensive mistakes. And you will refund guests whatever your agent negotiates on your behalf. No questions asked! Just refund! 
  4. Some owners initially find it difficult to contemplate guests will use their home and to trust their agents who control their homes.  
  5. Don’t skimp on features; proper WiFi is non-negotiable, Netflix, TV, Nespresso, BBQ, sharp knives, extra blankets in the lounge for cold winters,  etc. 
  6. The above goes hand in hand with the continued investment in improvements. Guests regularly recommend things. We don’t compromise on these as they improve profitability.

Use Our Free Quiz To Qualify Your Airbnb Accommodation 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.

Load-shedding affects us all negatively. And Airbnb guests are frustrated. Obviously we can see load-shedding as a curse or we can do better than our Airbnb host next door in making guests happier than they ever expected.

Unfortunately, the load-shedding curse has consequences; if you are not interested in fixing the issues it will negatively affect your income.  It may even cause your house to burn down.  And we had such a close encounter yesterday. Luck was on our side.

Unsuspecting guests booked into the beautiful Mbali. They went out and left the “things” to charge. When the power got back the surge caused an issue; heat, then a flame and the next thing a fire.
CapeTown airbnb Loadshedding
This is not one of the emails with photos we like to send any of our owners ever:
 loadsheddingairbnbcapetown
“When the power came back on, after load-shedding, there was a power surge that sparked an electrical fire in the main bedroom. Thanks to the quick responses from Security and the fire department the house is ok. The main bedroom has water and smoke damage as the carpet caught alight. Beyond that, all seems OK”.

How Do Propose You Fix These Load-Shedding Issues?

  1. The obvious conclusion we can draw is that guests must unplug and switch plugs off.  But you are missing the FOOL. Guests are sophisticated FOOLs. It’s also called Murphy. If it can go wrong it will go wrong.  The only way to resolve this issue is to take full responsibility, do a FOOLPROOF Audit try and make it impossible for guests to make mistakes. The following steps are designed to protect you from Murphy……
  2. It’s critical that all owners install power surge protectors as soon as possible. With labour it should be less than R1000.
  3. We highly recommend owners invest in a simple power backup system at about R8000 (after discount). Not only will it ensure income it may even increase it. More here on what we suggest.
  4. If you don’t have a gas stovetop we suggest a one plate gas burner (more here).
  5. Fire and monoxide detector should be a standard fixture to any home.
  6. Ensure that you have liability insurance against guest claims and your insurance guys are aware you are doing short term rentals. 

Even though this could have been a major disaster; quick action by many roleplayers prevented a calamity. And it was great to get the owner sharing the following with us:

Elmarie,

Thank goodness I have the best team ever, I appreciate all you are doing to get us back in business.
It was quite a shock to read what happened. I had no idea about Surge adapters and will now investigate what they are and if I need them anywhere else.

 


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. 

The Best Owners To Assist with Airbnb Management

I wish we had a crystal ball. Because it can go wrong. And it will – more here on the Airbnb Marriage Made In Hell.

When you work with an owner you have to become a team. There is no opposition. Because a good agent assist the owner by doing what the owner expects.  And if the OWNER wins the AGENT wins as well.  Is that not ideal?

Let’s consider a few qualifiers:

  1. If an enquiring owner kicks off asking how much we charge, you know he is shopping for the cheapest deal. We are not in the auction business.
  2. bestairbnbownersOwners who are not interested in reading, or rather studying our FAQs. These FAQs make our relationship transparent. We know. And you know. There are no surprises. When we get an owner not interested in reading the FAQs we know we don’t have a team member. We may end up with more and more misunderstandings.
  3. When owners start micromanage us. It’s great to get the owner’s input and it’s encouraged. But if it continues never-ending, it becomes pedantic, demanding, etc then the relationship will strain. It’s like you assisting your friend with his bad tooth. 
  4. When owners expect us to maximize income but they want to set rates. Unfortunately maximising income should never be left to the owner. In the past, we had various owners who thought high rates equal high income. It’s not and owners have lost massive opportunities. More here!
  5. Owner’s who are very protective, and owners who cannot handle criticisms will find it difficult. Very difficult. Guests can be cruel. Be willing to learn. And improve from each criticism.
  6.  Owners who tend to focus on reducing costs  instead of investing in ways to increase demand for their home.  What you save being stingy will never compare to what you lose not investing in improvements.   If you want to focus on cost then it’s better to get a management company who does everything as cheaply as possible while increasing profitability is not an issue.
  7. Trust. Some owners trust very few people. If this is you then rather find another Airbnb management agency.

 

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.

Protected Area

This content is password-protected. Please verify with a password to unlock the content.

ps loader
Category: Management FAQs
  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

As you may have read, Agency.CapeHolidays.Info kicked off during 2009.

During this time we have had a few experiences we would not wish upon our worst enemies. Luckily we can count these bad experiences on two hands.

Some ridiculous, some funny and others; close to madness. Use the links below to read more.

airbnb-foolproof-audit

 Underestimate The Ingenuity of Complete Fools.    

This is really well said. In the Airbnb shorter rental business we cannot be more vigilant to the ingenuity of complete fools
When I use the word fool it’s not intended as a judgment; the intention is to rather say, ignorant person. Ignorant in its actions and choices. And these actions and decisions can be the  cause of serious damages and costs .  
All we need is to do what is reasonable to counteract these fools. Understanding we will never cover all ingenuity of complete fools. We, therefore, those owners do a foolproof audit. And keep on fine-tuning it. 

List of possible issues to recover during your foolproof audit.

Fool Proof Checks

Protected Area

This content is password-protected. Please verify with a password to unlock the content.

ps loader
In general, you want to replace expensive things with quality but easily replaceable items.
The most critical of these listed issues must be shared to your manager to add to the listing, where guests book as they must take responsibility for staying knowing about potential risks, and in your house manual and rules.

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. 

Read more on Foolproof Audit
What to check for when doing a foolproof audit – get it here.

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. 

Action:

  1. Get insurance and third-party liability insurance. 
  2. Set a reasonable breakage deposit. 
  3. 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.