SA property owners: Short-term rentals are a hot ticket this season
Urban believes that properties listed on short-term rental platforms like Airbnb could outperform the long-term rental rate.
Short-term rentals, long-term gains
He shares that over and above earning money from the rent itself, hosts benefit from the value of their property increasing since it can be sold with existing bookings as a going concern which is attractive for investor buyers. “Additionally, with the right management company, the property will always be kept in showhouse-ready condition, which is helpful should hosts decide to sell.”
“Unlike long-term leases, where the property typically degrades over the course of the rental period, short-term rentals mean that homeowners won’t have to spend time and money bringing the property back into a rentable condition once guests leave,” adds Urban. “Hosts also get to use the property whenever they like which is not possible with longer lets.”
He advises hosts to list their properties on as many platforms as possible. “This way, they can maximise the pool of potential guests.” Urban also shares some suggestions below on how they can attract bookings:
- Make sure the property is in good condition. The design aesthetic should appeal to a wide audience.
- Get professional photographs taken of the property. Potential guests look at photos first and then at reviews, so it’s not worth skimping on this; the photos will more than pay for themselves in the long run.
- Put loadshedding measures in place. Get an inverter or UPS so guests have internet access at all times. This is particularly important for hosts in the Western Cape in light of the City of Cape Town’s new partnership with Airbnb to attract remote workers. It’s also an easy way to differentiate the listing and attract extra bookings in general.
- Make use of dynamic pricing. Test a few pricing tools that use aggregated data to price the listing accurately. Some research should also be done to get a feel for what other properties are charging. Additionally, hosts must look at what events are scheduled to take place in their cities and adjust the price of their rental in line with anticipated demand for accommodation.
- Have a flexible cancellation policy. If the pandemic has taught us anything, it’s that life can change at a moment’s notice. Nowadays, guests are less willing to book accommodation with strict or moderate cancellation policies.
- Offer shorter stays and/or accept same day bookings until very late in the evening. This strategy is not for everyone as it requires more work, but there are definitely fewer listings on the market that offer this, which makes it easier to obtain bookings.
- Research articles on how to optimise the listing score on Airbnb. Some examples would include encouraging guests to leave reviews, lightning-fast response times whenever a guest sends an enquiry or message, making changes to the listing description or photos, and never cancelling a booking unless absolutely necessary.
Courtesy of Bizcommunity – read full article here.