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.

All Airbnb guests should be reviewed fairly, firmly and truthfully by hosts.

Nothing else and nothing less.

We are all nice people with a twist. Some twists are not pleasant. Therefore being nice when we have to write an honest negative review is not easy. But it must be done. 

Unfortunately, when we  give the guests a dishonest positive review we defy the objective of building trust.  Future hosts depend on an honest review from previous hosts. You depend on it. 

As they say,

“what goes around comes around”. 

We have had a case where 4 guys booked into a home with 4 great reviews. They were proper con artists and had parties every night. The last night they had [arranged?] a  break-in . This puts the owner on the spot and he does not want a bad review with comments about a break-in. And then the hosts either not review they guys or shake hands and agree to share only positive stuff. 

Well. We did not. We said they are not recommended. And we blocked them. 

BTW: These guests never laid a complaint with Airbnb or the police. Who would not complain after a break-in? Odd. 

And we expect our owners who manage to give us the truth as we know you want us to only send you good guys. 

When you review a guest consider the following criteria:

  • Overall experience. Overall, how the guest?
  • Cleanliness. Did the guest leave the place in a reasonable state?
  • Communication. How well did they communicate before and during the stay? 
  • Check-in. How well did they adhere to check-in procedure? 
  • House rules: how well did they follow the house rules?
Category: About Airbnb

Airbnb Profit Calculator

Excellent question, “how much can I make on Airbnb?” when you intend to list on Airbnb. But what about the Airbnb income calculator?

You get some great Airbnb profitability calculators; they tend to only use your property address and the number of bedrooms to calculate your Airbnb profitability. Well, let’s look at….

Airbnb’s own free calculator. For example; look at a two-bedroom in Cape Town. Airbnb suggests a monthly R26 531 (or +R300 000 or $22000 per annum). This is optimistic, to say the least. What about occupancy? I see the norm is a low 37% occupancy. Did they calculate this income at 100% occupancy? I just have too many questions. And you should as well.

airbnbincomecalculator

Personally, I believe the calculators may be designed to lull you into listing your accommodation as very few people in Cape Town would not list their accommodation on Airbnb Profit Calculator if they can get the above. You may even consider buying a property because of the high potential Airbnb income. Mistake.

We believe you must crawl before you run. And let’s rather be conservative.

And consider other factors as well.

Your potential income cannot be based on your neighborhood and number of rooms only; yes, it’s a good start but what about the host’s attitude towards guests, your rules (minimum stays, cancellation policy, discounts, etc.), your location in relation to the beach (or related major attractions), pool, jacuzzi, features, willingness to invest in staging and professional photos? And the list of critical Airbnb income drivers grows.

It is for this reason that we developed an in-house Airbnb quiz to try and determine if your Airbnb Profit Calculator accommodation will make money. No bull.

The quiz, obviously, depends on your honesty. But the verdict will be better than using an Airbnb profitability calculator.  It may not answer your question; How much can I make on Airbnb? Calculator. No. But when you get the results from the Airbnb Profitability Quiz you will know; if your Airbnb accommodation will make money or not and what you need to correct it.

 

Get The Free Airbnb Profitability Quiz 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.

Airbnb Profit Calculator

Excellent question, “how much can I make on Airbnb?” when you intend to list on Airbnb. But what about the Airbnb income calculator?

You get some great Airbnb profitability calculators; they tend to only use your property address and the number of bedrooms to calculate your Airbnb profitability. Well, let’s look at….

Airbnb’s own free calculator. For example; look at a two-bedroom in Cape Town. Airbnb suggests a monthly R26 531 (or +R300 000 or $22000 per annum). This is optimistic, to say the least. What about occupancy? I see the norm is a low 37% occupancy. Did they calculate this income at 100% occupancy? I just have too many questions. And you should as well.

airbnbincomecalculator

Personally, I believe the calculators may be designed to lull you into listing your accommodation as very few people in Cape Town would not list their accommodation on Airbnb Profit Calculator if they can get the above. You may even consider buying a property because of the high potential Airbnb income. Mistake.

We believe you must crawl before you run. And let’s rather be conservative.

And consider other factors as well.

Your potential income cannot be based on your neighborhood and number of rooms only; yes, it’s a good start but what about the host’s attitude towards guests, your rules (minimum stays, cancellation policy, discounts, etc.), your location in relation to the beach (or related major attractions), pool, jacuzzi, features, willingness to invest in staging and professional photos? And the list of critical Airbnb income drivers grows.

It is for this reason that we developed an in-house Airbnb quiz to try and determine if your Airbnb Profit Calculator accommodation will make money. No bull.

The quiz, obviously, depends on your honesty. But the verdict will be better than using an Airbnb profitability calculator.  It may not answer your question; How much can I make on Airbnb? Calculator. No. But when you get the results from the Airbnb Profitability Quiz you will know; if your Airbnb accommodation will make money or not and what you need to correct it.

 

Get The Free Airbnb Profitability Quiz here.


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. 

With compiled a proformal manual for you to adapt. The manual is not final. It’s the minimum required.

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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.

Why Keep A Management Kitty?

More on emergency breakdowns
Owner-only-kitty is kept to cover management costs. We must correct an issue (maintenance, DSTV, electricity, gas, or other) when it occurs.
  1. A few owners tend to forget to pay their monthly accounts. When this happens you don’t want to let the guests suffer because the owner is asleep.
  2. Other times, maintenance is required, and getting money from the owner to pay or waiting for a booking to pay is not clever.

Note: Your Cash Flow statement is up to date 24/7 and shows you at any time what is in the kitty and what money is outstanding at any time.

kittyairbnb

 

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.

 

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