CapeHoliday’s Accommodation Management Costs
Note: We get two kinds of owners; those who want to unlock the value of their home and bank a healthy profit and those who want to save costs.
The latter always consider costs to operate, but the first consider the opportunity and to learn how they can bank more.
The one considers problems, the other solutions. We tend to work best with owners who don’t skimp on investing in guest experiences which results in more guests, better reviews, more trust, and more profit.
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:
- Meeting and greeting guests.
- 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 R350 per incident. But can be different depending on the house. It can change at any time. And owners will be informed if it does.
All costs; every-day running the home is not included. These not include fees are, but 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).
Every guest who books pays the total rate for the stay and an extra, one-off, change-over fee to cover most of the change-over cost but not all costs.
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:
- The guest pays the rental fee plus a change-over fee.
- After we deduct our commission and we credit your account with the rental amount and the change-over fee.
- 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.
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!
- You get the Cash Flow via email from CapeHolidays
- Open the email and click on the button “Cash Flow” while using your mobile phone or e-pad.
- It will open in Google Sheets.
- If you use an Android Phone (Samsung, and other) watch this 1-minute long video to save where you can get it.
- If you use an iPhone or similar watch this short video on how to save this sheet to your mobile home screen.
- Now you have a button on your phone with access to the Cash Flow every minute of every day.
Win Unhassles Airbnb eBook & Plus Advice Worth R10000
Y ou have read the previous Airbnb Host tutorial articles (here) in the series?