What should you consider before signing with a property management company? This article addresses that so you make a better decision.
In my experience the best teachers never tell you what to think, but instead show you the possibilities of how to think.
This method puts you in the driving seat and encourages you to be a critical thinker so that you know you are making the best decision for you and in this case for your property.
This article will present you with things for you to consider so that you make an excellent decision and choose a property management company that exceeds your needs.
Here are 10 things to ask yourself before signing with a property management company. Whether it’s property management in Tel Aviv, Italy or anywhere else in the world, these questions apply to everyone that wants to outsource the management of their property.
Signing with a Property Management Company
1. Do they offer 24/7 customer service?
24/7 customer support may seem like a luxury, but if you are going to pay for a service, you should make sure it’s part of the overall service when it comes to the company managing your property.
24/7 customer supports ensures the following:
– a quick response rate to inquiries
– making sure there is someone there to talk to guests
– overseeing the check-ins and check-outs
While these may seem like small details, they are in fact essential to making sure guests are kept happy. This means better reviews and better reviews mean more bookings. And we all know what that means.
2. How do they process your revenue?
When it comes to the money your property earns as a result of being managed you want to ensure you know all the ins and outs of it. Otherwise you’re going to have to ask a lot more questions than necessary which is going to frustrate you as much as anybody else.
Know what date you can expect payment. How your payment is calculated and how and when you will be issued reports.
These are all essential details for you gaining the level of transparency you will need to have an effective working relationship together.
3. What is their social media presence like?
Social media is an easy one to overlook, but you shouldn’t. A company’s social media page will show you how they represent themselves. The language they speak as well as acting as an innovative channel to gain leads which may turn into reservations for your property.
Many average property management companies rely on all the same sources of reservations. Having an active social media presence gives them another source for guests, meaning they may have an edge over their competition. So always be on the look out for a healthy social media presence.
4. How is their website – high quality or outdated?
As companies are busy getting things done, many of them are guilty of ignoring their online presence and having an outdated website. Which you may see an indication that they may be neglecting other aspects of their business as well.
Seeing a high end, well maintained website, may in fact be a good indicator as to how they do business and how they will look after your property.
Attention to detail matters, no matter where the focus is.
5. What is the average contract length?
Make sure to inquire about two factors as regards your contract.
– Understand what it will take for you to get out of the contract. Life is complex and things change all the time. As a homeowner, you don’t want to find yourself tied down to an over-restrictive contract.
– See how long their average homeowner stays in contract with them. If they can showcase the fact they have worked with the same homeowners for several years, this is an excellent sign for you as someone who wants to outsource the management of your property.
6. How do their public online reviews look?
Go to credible, independent sources for their company reviews, such as Google, Airbnb, or booking.com. Look at the number of their reviews and weigh it up against their average review rating.
You may see bad reviews mixed in with many great reviews hopefully. The thing about bad reviews is that they can often tell you more about a company than good reviews.
A bad review is an excellent opportunity to see how they respond and conduct themselves in such a situation. Read both aspects of the review (the review itself and the response). Get the full picture and gain insight into just what type of property management company you are dealing with.
Now of course the vast majority of the reviews should be excellent, so always look for an average rating between 4.5 to 4.9.
Below 4.5 is a red flag and above 4.9 is also a red flag, because it may mean that many of the reviews are fake. Look for that sweet spot.
7. Have they been recommended to you by another homeowner?
Often you’ll want to be referred to a property management company via a referral by someone you trust. However this may not always happen, so you may want to seek out other homeowners under the management of the company and talk to them on eye level and understand their assessment and experience with a particular company.
You are giving the keys of your asset to someone you don’t know personally. Taking these precautions will give you peace of mind and ensure your professional relationship gets off to the right start.
8. What is the logic behind their pricing strategy?
It’s important to assess the logic the company is using to mange the pricing of your property. This ensures two things:
– You will be priced competitively
– Your properties earning potential will always be maximized
While you don’t need to understand it fully. It is important you are aware of just how in-depth they go to get you your results. Without this pricing logic, any gains you make will be short-lived. When what you are really looking for is scalable, consistent, and continually improving results.
9. Are they willing to tailor their service to suit you?
At the end of the day we are all individuals. We all have needs. And you may need an agreement that suits you above all else. Ensure that the property management company you work with are adaptable and willing to bend to accommodate you.
Perhaps you need your money transferred in a certain currency on a particular date. Perhaps you need the flexibility to block dates and unblock them as you feel like it. There are many variables that may come up to ensure you get an agreement you are happy with.
10. How are they using technology?
The vacation rental industry is one of the most innovative industries in the world when it comes to technology. You can expect that the leading property management companies will be up to speed with the best technology out there. This in turn will make sure your property stays competitive in the market.
Sea N’ Rent, based in Tel Aviv, uses 3D visualization technology called MatterPort. This allows potential guests to have a digital walk-through of the property before booking.
However behind the scenes as well, there will be a lot of technology you as a homeowner are not aware of. This includes software such as channel managers and property management systems.
One of the most important aspects of technology that you will want is an online portal for you to access so that you can log in anytime to know how your property is performing when it’s booked and how much you are getting. So make sure the company you choose has this feature in place for you.
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There are of course many more questions to ask. However above all else, what you are looking for is a property management company that you can build a trusting and professional relationship with.
Building this relationship is based on one thing. That’s transparency.
Whatever questions you ask, make sure the property management company you are signing with, goes above and beyond to be fully transparent with you no matter what details you are asking about.
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Have you got a property in Tel Aviv that you’re considering renting out as a vacation rental?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.
Lior Nassi is the co-founder of Sea N’ Rent. With over 10 years of experience with vacation rentals, we ask about how to keep guests happy.
When it comes to the vacation rental market Lior’s experience goes beyond Israel property management. Lior has also taken on projects in Italy, Cyprus, Romanian, United States and is currently assessing the Portuguese market.
Mr. Nassi has created methods that are transferrable on an international scale, making his advice all the more important to listen to.
With that said let’s get cracking with these questions on what keeps guests happy.
How to Achieve Guest Happiness
We sit down with Lior in his Villa in Portugal. Over an espresso in his rustic farmhouse kitchen with a view overlooking the ocean. We dive straight in.
Scott: Hello Lior, how are you?
Lior: Shalom, I’m good Scott, thanks for asking. Happy to have you here today and what beautiful weather we are having.
Scott: Lior I know you’re busy and I don’t want to take up too much of your time, so let’s just start.
Lior: Sounds like a plan, let’s start
Scott: Ok then here’s question 1: At what point does good customer service start in the guest journey?
The guest journey starts the moment the guest decides on what type of accommodation they want to stay in, for example in an apartment or in a hotel. Once the guest has decided what type they will then decide on which platform that they want to book.
They may decide to go through a third-party website like Boooking.com Expedia, Airbnb and so on or they may decide to book directly with the host of the property whether it be an individual or a property management company like Sea N Rent.
This splits the guest into two different entry points for where customer service begins.
If the guest goes through a third party, the experience is greatly automated, whereas if the guest books directly hosts often value that and so the customer service journey starts much earlier.
That initial interaction is key to showing the guest that as a host or property manager that when they book directly they will get that high level of customer service, even before they commit to their reservation.
Scott: What are you looking for in guest feedback to know that you’ve succeeded in keeping your guest happy?
In the feedback and the review, I’m not looking for anything specific. Because I know many of our happy guests don’t go down to details when leaving a review. It’s very rare that a guest takes the time to give back detailed feedback.
Together with this, I notice that guests that had a less than perfect experience were still giving us those top reviews so I’m not looking for the feedback in the review but I’m constantly looking and striving to give the guest the highest level of service we can offer.
This means going down to the very, very small details. Even details that will not affect the review, but will definitely affect the experience of the guest.
Scott: How can technology aid the customer experience?
Technology aids the customer experience as long as you still have complete control and awareness over the technology. With so much automation the guest should always still know that they always have someone to communicate with.
There are not many things that are more frustrating than a guest that is struggling to get in touch with a real person.
Scott: Has customer service in the vacation rental market generally improved or gotten worse in the last decade. Explain your thoughts
To my experience and knowledge, it has improved dramatically and it’s still improving. To the point right now that many of the guests are just choosing to stay in vacation rental properties instead of staying in old-fashioned serviced hotels.
The people really really got the knowledge. It’s evolving although it’s a very young niche within the short term rental market.
If you like take a look at the film picture industry and the digital picture industry.
The digital picture industry improved dramatically the experience of the user in the way that they have instant access to what they are doing but on the other side of the picture film industry, you have greater experience and deeper knowledge which reflects that of the hotels.
The vacation rental industry is still so young and disruptive. Much standardization has to take place.
The film industry still produces better quality pictures but the digital industry is defiantly going there and doing so rapidly.
Scott: When you stay at a vacation rental, what three things are a must for you as the guest?
For me funny as it may seem it’s very important for me to know who I am booking with. Which company, which host/individual, who am I dealing with.
Secondly It’s very important for me to arrive to a place that I see is not like a cold place without a heart. It’s very important that the place has heart and soul and a feeling of coziness.
The third thing that it is important for me to feel that I am the owner of the place and that I have the privacy and freedom in this place to do whatever I want and put my character into it.
Scott: With that said can you highlight three things as a guest that major red flags?
Seeing the owner very frequently, if the owner is too needy and has many comments and too many rules, what to do and what not to do and who I can bring and who I can’t bring, those kinds of things. This is a red flag for me.
A second red flag for me would be a host that is not responsive. And not taking care of issues in the place, because there are always issues.
And thirdly, since I like to stay in place for a long time, it’s important for me that the host adapts and prices accordingly. A host that does not apply a smart pricing system in honor of a loyal guest highlights another red flag for me.
Scott: In your experience what’s the best example you’ve seen of someone going above and beyond to keep a guest happy?
Actually, I see it in my own company. Recently one of the members of the team really had to take it upon himself to comfort a guest while the guest was experiencing personal issues.
This for me is above and beyond. If a member of the team sees an opportunity to care and show compassion, this goes beyond their job description yet it’s what gives their actions impact and meaning.
Scott: What do you think the future has in store for enhancing the guest experience?
I think the industry in general needs to evolve more and to go down to the details even more. Look at the hotel industry, for some time it looks like the industry is going from nice to have to the must-have.
It’s clear that in this young industry of vacation rentals a lot of people are getting away with things that are nice to have. But as the market grows and becomes more competitive, the things that are nice to have slowly become things that you must have in order to survive.
So I see the general standardization of the industry being raised significantly, whereby it increasingly becomes more professional and the novices simply will die out.
The only places that will survive are the ones that give added value as a standard practice and not because they are special.
Eventually these nice to have things will become expectations of the average guest.
Scott: How can property managers offer a better guest experience than a standard yet reputable hotel chain?
Again we are going to the heart and soul of the place. For example, you can enter the place and feel like someone prepared it and cleaned it as a standard practice. Or you can enter a place and feel like someone took control of the space and made a unique guest experience just for you.
With vacation rentals, you have a real opportunity to give personalization and make a real soulful connection with your guests. Hotels generally don’t have this opportunity. They run more of a production line when it comes to processing their guests.
The soul is a tangible quality and it can be projected into the space of a property rental.
Scott: What is your guiding philosophy when it comes to keeping guests happy?
I wouldn’t say I have a guiding philosophy that includes the guest. My philosophy is more down to the operation of my team for the guest. Making sure we give the guest all the tools and all the options to be happy.
What I am talking about is staging the apartment in a way that everything is in the right place and that the apartment is staged. As it would be for an actor performing in a movie entering into an idealistic scene where every detail has been taken care of.
To enjoy the space to feel at home, that they will get a clean place and at that point its very important that in a way we leave the guest alone.
It’s like a coach of a football team. For me, the good coaches were those that always sat back, stayed quiet, and allowed the team to get on with the game.
They are not screaming in the match because they know their players came ready for the match. The good coaches see how the players are implementing what they have been thought in the game.
Once the guest arrives, if everyone did their hob, I just need to relax.
Scott: Wow Lior, my minds’ blown this has been such a terrific experience. I’ve learned so much.
Lior:Thank you, Scott. It was my pleasure. Until next time.
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It’s not every day you get to sit down with someone with such a rich experience and in-depth professional knowledge and really pick their mind like this.
Lior has proven himself domestically and internationally in the world of vacation rentals. His wealth of experience hasn’t just kept guests happy but many homeowners happy as well.
I feel what’s most important about Lior’s insights into the guest experience and customer care is that he’s always turning his words into actions. Lior undoubtedly follows through on what matters and it shows.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.
Hosts are competing for clicks across the web. What can you do today to make sure your listing gets clicked and your property gets booked?
I’ve published 100’s of properties on various platforms including Airbnb, HomeAway, Expedia, Agoda, Ctrip, TripAdvisor, Booking.com, and various other platforms. The experience gained has been significant. Giving me methods and ways to ensure properties I list are optimized so that my listing gets clicked.
Below I share with you 7 insider tips to make sure your listing gets clicked.
Read on, apply and make sure your listing isn’t left behind in the dark depths of listing obscurity.
7 Insider Tips to Make Sure Your Listing Gets Clicked
1. Photos
Invest in a professional photographer. I know it’s tempting to take the photos yourself but the bottom line is, the people at the top of this business are using professional photographers and this is who you are competing against.
As well as this the photographer is most likely experienced in knowing what matters for these photos and will give you the best practices to ensure you get the most out of the photoshoot.
It may seem a bit pricey but think of it as an investment. The more you get clicked the more money you’ll make. That photoshoot will pay for itself.
Think outside of the box. While your apartment may be lovely and special, ultimately it’s not the only reason why people are coming to stay at your property. Make sure to get photos of the local area, highlighting reasons why people will enjoy staying in the locality.
Potential guests always want to see the outside of the property as well.
This serves two purposes:
1. It ensures the quality of the building and that their experience will go beyond superficial interior aesthetics. 2. It will help guests identify your property when they arrive giving them an increased level of confidence and increasing the likelihood of them booking with you.
Next, once you have the high-quality photos, put some thought into how you arrange them. Making sure to put your top 3 to 5 photos as the first ones people will see.
These first few photos will ensure higher clickability. Be careful to pick the ones you would want to click on if you were the guest. Put yourself in their shoes.
You have about 1 to 3 seconds to get someone to take in your headline and make a decision to click.
This means your headline has to be:
Short (Most platforms have character restrictions)
Showcase the unique selling point (pool, gym, bright, new etc.)
Sound appealing (use powerful words such as amazing, beautiful, luxurious etc.)
A lot of people make the mistake of trying to cram too much into their headline. This often has the opposite effect.
Try following this formula:
Power words + Property type + unique selling point
Just about anybody can do that.
The real skill comes in making it as short as possible and packing in as much information as possible. This is what separates the professionals from the amateurs.
3. Response Rate
Most booking platforms will favor showing properties with a high response rate. This is why at Happy Owner we have a team that operates 24/7 to ensure we have a very fast response rate.
All properties managed by Happy Owner get this service.
The faster you respond to guest queries, the more likely you are to be ranked higher on people’s searches. This ensures more impressions and therefore more clicks. More clicks mean more bookings.
You’ve either got to be ready to answer or outsource the work to a credible property management company that offers you’re properties and guests that 24/7 support.
4. Prices
If you don’t continuously update your prices and stay competitive you may be pricing yourself out of your listing getting clicked. Having an overview of the market that is relevant to your property will ensure you price yourself within the market range for what you are offering.
Property management companies use various types of software and strategies to achieve this and to stay competitive.
5. Reviews
In the world of short term vacation rentals reviews are basically currency. The more you do to earn top reviews the more booking platforms will push you up the rankings. Again increasing your impressions and increasing the likelihood of your listing getting clicked.
This is why property management companies value so much the concept of customer service.
What is done on the ground is vital to how your property listing performs online. Literally, nothing will boost your listing and increase clicks more than a stream of top ratings and great guest feedback.
If you want to be ranked high you either need to be hungry for those top reviews or work with a property manager that knows how to get them on a regular basis.
The truth is there is no secret to gaining high-quality reviews. You get them because you’re good at what you do. If you’re not willing to invest the time and effort on the ground it will show on your online presence.
6. Descriptions
The two biggest reasons why people fail at descriptions is because:
They under value the art and technical skill that is content writing
They under estimate their audience and produce generic meaningless descriptions
A description should be laid out and composed well. Most importantly it should go into a degree of depth in terms of the unique value and characteristics of the property.
For example:
Bad content: This amazing, spacious, and bright kitchen has a toaster, kettle, oven, stovetop, and espresso machine Good content: An archway leads you into the kitchen space, naturally lit up due to the south-facing floor-to-ceiling bay window overlooking the sea.
The first example could be applied to so many kitchens. However the second description is much more unique to this specific listing.
As a general rule, always stay far away from generic descriptions. It’s lazy, lacks imagination and people see right past it. You’re fooling nobody.
7. Online profile
Whether you’re on one of the major platforms like booking.com or Airbnb or even if you are selling direct from your own website, profiling yourself through the various tools or via an About page is an essential component.
This is your opportunity to build up your online presence and establish credibility for yourself and your listing.
People want to feel confident about booking your property. Exposing yourself as a real company or person as the case may be will go a long way to giving a sense of transparency which will, in turn, build trust.
A strong, professional profile will ensure your listing gets clicked a lot more.
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With all of the above said, remember setting up your property is not a set it up and leave it process.
Listings must be revisited. Feedback from guests will affect what is important and what you want to bring to the forefront of your listing.
At Happy Owner we regularly make adjustments making sure to A/B test features of our online property listings to see what has more of an impact. This could be changing a headline or changing the order of the photos. Then reviewing the analytics to see if it increases performance.
This is how we always stay competitive for all the property owners we partner with in Israel.
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Have you got a property in Tel Aviv that you’re considering renting out as a vacation rental?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.
Perhaps you’re considering working with a property management company, but you can’t decide. Here is a list that will help you.
Property management companies wouldn’t exist unless they were answering a common problem that exists in the rental market.
Some do a better job of this than others so you need to do your homework and see which are the best ones to reach out to.
Renting out your property seems simple on paper especially to the short-term rental market.
It goes a bit like this:
Somebody wants to rent a property.
You have a property.
You rent your property to them. Easy.
If only it were that simple. People are complex and so is the operation of property management. But with the right systems in place, property managers such as those at Happy Owner do their best to take the complexity out of the equation.
Making this entire process stress free, while you still get all the benefits.
So why would you work with a property management company when you can have a go and do it yourself?
Advantages of Working with a Property Management Company
1. The market is competitive
Entering the vacation rental market is relatively easy and requires no experience (unfortunately). However, this leads to a big gap in quality. For the most part, a lot of these OTA (Online Travel Agents) don’t care about this as much as they would like to.
OTA’s such as Airbnb, Booking.com, and Expedia are all playing the numbers game and not the quality game. They have a formula to scale up and to do so as aggressively as possible.
There are other platforms on the market offering an alternative to this. Such as Plum Guide and Homes and Villas by the Marriott, but in general OTA’s are playing the numbers game. Bigger inventory means bigger money.
This makes the market incredibly competitive. To compete having a partner that is a competent and trustworthy property manager may be exactly what you need to position your property in the market, sustain yourself, and grow continuously.
2. Last Minute Bookings and Late Check-ins
Not all reservations will happen at a time that is convenient for you. You won’t always be able to check a guest in that is arriving at late night hours.
This inconvenience can be greatly disruptive to your day and your life.
Alternatively, you can place restrictions on your property so these occurrences don’t happen. However, that may have a negative impact on your ranking on these platforms and ultimately lower your earnings for your property.
Working with property managers such as those at Happy Owner can solve this entire problem for you. Last minute check reservations won’t be a problem. Guests checking in at irregular hours will either be accommodated or an automated system will be used to ensure they check-in smoothly and easily.
For a prolific property manager, this is all just part of everyday life.
For a private owner, this may cause stress, a breakdown in communication, and perhaps not just an unhappy owner but an unhappy guest as well.
3. Maximize your earnings
Knowing your property is positioned correctly in terms of presentation, pricing and customer service will ensure you get the maximum from your property.
Doing it yourself requires a lot of guessing and trial and error while you could be just benefiting from the experience of a professional.
You’ll be less likely to panic, worry and second case your decisions and instead let the property manager deal with all of that.
4. No need to deal with guest issues
Issues with the property and issues with the guests are inevitable. Any property manager that tells you differently is a property manager you ought to stay away from.
However when they happen you won’t have to worry about it. Your property manager has the skills and experience to navigate any turbulence that may present itself during the time of the guest’s experience with your property both before, during and even after their stay should issues arise.
The key to the best resolution is often timely communication.
With a team of dedicated professionals committed to the success of your property that won’t be an issue.
5. Maintenance is not your problem
Any property run successfully will require maintenance due to wear and tear. It’s inevitable. As well as this the more people that stay in your property the greater the chance of breakages and property damage.
Some small, some significant, but regardless all need to be looked after professionally and in a timely manner. A reputable property maintenance company will have dedicated staff ready to take care of and resolve these issues.
Finding the right people and handling any other logistical and tactical challenges you may be confronted can be incredibly time consuming.
6. Simplicity
When you connect with the right property manager, your biggest obligation is signing the contract and handing over the keys.
As long as you can handle that you are golden. Additional expenses may occur for professional maintenance and the upkeep of the apartment but you’ll be told about them in good time.
Your property is managed by a professional, your agreement is legally binding and as long as the money keeps flowing into your bank account everyone’s happy.
Making money from the point of view of the owner does not get much more simple than this.
7. Minimize your investment of time
Time is one of the biggest resources consumed when managing a property. There is maintenance, administration, lead nurturing, customer support, legal compliance, cleaning and laundry among other things.
And that’s if everything runs smoothly. Life has a funny way of presenting us with challenges and when it does that challenge requires more time and attention.
A good property management company will take care of all of that for you. As a property owner your investment of time is minimal.
8. Ability to to scale up without increase input
Let’s say in the best case scenario you successfully manage your property in the short term rental market. You may be confronted with or tempted with another property to host and manage.
As a private owner that means doubling your investment of time, resources and energy. With a property management company, you simply tell them you have a new property for them and they’ll add it to their inventory.
You potentially double your cashflow without doubling your effort and that is what we call efficiency.
9. Professional photos
This touches on previous points, however it is worth bringing attention to as its own point.
There will be several primary reasons why someone selects your property on one of the online travel agents. One of those reasons will be the visual impact.
The primary way you achieve visual impact is through the photos.
A good property management company will ensure that your property is positioned with excellent photos taken by a professional. This will increase the number of times people click on and enquire about your property.
As a result it will increase your revenue and result in you being a Happy Owner.
See below an image from one of Sea N’ Rent’s properties in Tel Aviv.
10. Cleaning and laundry are sorted
Right next to cleanliness and maintenance there is laundry. Bed linen and towels must be in excellent condition and of the highest standard when it comes to their level of both comfort, visual display, and of course cleanliness.
A reputable property management company will work with a professional laundry service to ensure a fresh and consistent flow of clean towels and linens enter your property for all your guests.
It seems obvious that this should happen, but it should also happen like clockwork and when a guest needs extra it should be readily available.
This is exactly the sort of service you can expect from professional property management company and honestly you should not accept anything less.
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Regardless of whether you are thinking of flying solo and embarking on the short term rental market with your property yourself or teaming up with a great property management company, you should weigh up all the details and make a decision that benefits you the most.
Choose wisely to maximise your profits, potentially scale up the operation and gain peace of mind.
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Have you got a property in Tel Aviv that you’re considering renting out as a vacation rental?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.
Have you considered listing your property on Airbnb? How do you know if your property is suitable to rent out as an Airbnb?
Having worked with properties in Israel, Italy, Romania, Cyprus, and the USA, as well as being a frequent guest around the world in other people’s rented out homes I’ve gained some excellent insight into what it takes for a property owner to succeed in this incredibly competitive market.
The Airbnb market is made up of two main players:
People who have an extra living space or home property and want to make some revenue on the side.
Property management companies such as Sea N’ Rent which take on the management of your property as their business.
The thing to remember is that there is no separation in the competition. Local homeowners are competing against professional property management companies.
Which brings me to my first question to ask yourself before listing your property on airbnb:
Listing Your Property on Airbnb
1. Are you prepared to let your property be managed by a professional?
This is a good point to remember as it may be the best way of your property standing any sort of chance competing in the market.
Professional property management companies are living and breathing this operation. The best ones are operating 24/7. Working with a property management company, in general, will give you an edge, so making the decision to partner with one, may be the key to ensuring your property is a good fit for Airbnb.
Yes, Airbnb wants everyone to believe you can just go online today and list your property and start earning and that is true you can do that, but let’s put that into context. Essentially you are a goldfish in a sea of sharks.
Most of the properties I work with have at least 80% availability.
If you only have availability for partial periods throughout the year, you will get ranked down considerably on the Airbnb rankings. This means that when you are in fact available to rent, it becomes increasingly unlikely you will appear near the top of people’s searches and therefore you will not benefit so much from the lucrative short-term rental market.
3. Does your building have a strict policy?
If your property is an apartment in a building, you may want to check the policy by the building management company. Some buildings and some areas for that matter strictly prohibit short term letting.
That doesn’t stop everyone from turning their apartment into an Airbnb but it’s strongly advised against as the implications of breaking the rules will of course have consequences you need to deal with.
4. Are the local amenities a selling a point or are they a disadvantage?
If you live in a great city like Tel Aviv, the amenities are rich and plentiful. Or if you live in a rural area like the countryside the amenities are totally different but both can still be selling points.
Some areas however are planned and designed in such a way that all you want to do is leave them. People generally live there due to lack of better options.
This is a serious question to ask yourself. Is your property located in an area where the amenities are highly sought after or is it an area that people simply pass through?
The doesn’t rule out short-term letting completely, as it may be a working town where employees and contractors need short-term accommodation. In that situation, it’s simply a case of you understanding who exactly is your target audience and positioning your property to suit them.
5. Do you have all the basics?
Regardless of whether your potential Airbnb is on the top end of the pricing scale or the bottom end, guests will have a minimum level of expectations which you should be prepared to provide.
These amenities include the livable basics: Fresh towels and linen, hand soap, heating, AC, a high level of cleanliness, garbage pins, all working lights, WiFi, fire deterrent measures, TV, and hot water, just to name a few.
An Airbnb that doesn’t have the absolute basics is generally not going to perform well.
6. Are you prepared to invest in your property?
Giving your property the once over before releasing it into the wild savanna is a must. There are so many things we learn to live with that an Airbnb guest will give you a bad review over.
In the world of Airbnb reviews mean everything.
Just as 5-star reviews will elevate you, 1-star reviews will crush you. Sometimes a bad review will be unavoidable, but if you get a bad review for something that was clearly within your power to control, honestly you probably deserve a bad review.
In my experience, many of these issues are easily resolvable DIY issues. This could include cracked tiles, cracked paint on the wall, a leaking shower head, presses that don’t close properly, window locks that are not secure, and so on.
Give your property the once over, and hire whoever you need to get and just tie up all those loose ends. You lived with them perhaps but your guests don’t want to, so get it sorted.
7. Can you provide professional photos?
Going back to the point I made earlier about goldfish in a sea full of sharks. The sharks use professional photos. You taking out your phone and taking a few snaps is not going to cut it.
If you want to compete with professionals you’re going to have to raise your game. This is another reason why working with a professional property management company may be the way forward for you.
At Happy Owner all the properties we manage get a professional photoshoot as part of the service.
8. Do you know what your prices should be?
Knowing what price you want and what price you can get are two very different things. Do your homework. Search on Airbnb for listings in your area and see what’s selling.
Price accordingly depending on your position in the market at any giving time.
Professional companies use sophisticated pricing tools such as PriceLabs to give themselves the edge over non-professional competition.
If you fail to optimise your prices for specific periods you will lose out on a lot of potential earnings.
I’ve seen owners put a flat rate on their property indefinitely. The Airbnb market fluctuates greatly and in some seasons you can double or triple your asking price while your expenses stay the same, dramatically increasing your profit margin and making you a Happy Owner.
9. How available are you to deal with your guests and inquiries?
To perform well on Airbnb you need an excellent reply rate. That means dealing with inquiries as they come into your inbox. It also means when you have secured a guest that you need to deal with their questions and comments both before, during, and perhaps even after their stay with you.
As you grow in demand so will the amount of time you need to spend on the computer.
This is fine if it’s your main stream of income but if you only see it as a passive form of income it may not be worth your while.
10. Are you prepared to learn the platform?
Airbnb generally is an easy platform you use, however, you’ve still got to learn how to use it, and for some, that may be a steep learning curve with many mistakes along the way.
Thankfully there are heaps of tutorials online to help guide you.
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There’s a lot of people online today declaring how they made a multi-million dollar business working on Airbnb and how Airbnb is the perfect business for passive income and there may be some truth in both statements but don’t be naïve.
Many of the people making these claims are leaving out a lot of details, such as the question of whether they own the properties or they are managing the properties. These are facts that would greatly affect their bottom line.
There is a very low barrier of entry to entering the Airbnb market.
This is both a good thing and a bad thing. It’s good because anybody can get online and start hosting within hours. It’s a bad thing because there is massive competition in the market.
To compete seriously or even just to optimize your property so it reaches its earning potential you may want to partner with a property manager.
If you want to swim with the sharks go in prepared or team up with a shark.
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Have you got a property in Tel Aviv that you’re considering renting out as an Airbnb?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.
