Managing Self Catering Accommodation: Our Ideal Cape Town Clients Maximise Income

income vs cost

Managing self-catering accommodation in Cape Town is one of the choices remote homeowners need to consider carefully.

Today I want discuss one of the ways homeowners can qualify any Cape Town short term rental agencies; value vs cost:

Surely there comes a time when counting the cost and paying the price aren’t things to think about any more. All that matters is value….. James Hilton

Let’s see how the wisdom from James Hilton can be woven into this story.

You sit with an investment but many times this investment is costing you lots of money and frustration. Every year you see money pouring out and there is no return; other than a few days at the home where you are supposed to have fun, you spend time fixing broken stuff and replating the garden. Your mindset is to save money. But with that frame of mind you will choose the cheap alternative.

No wonder many owner’s mindset is to save money. They are blind to the potential income they can make from the booming Cape Town tourist industry.

But with cost saving frame of mind you will choose the cheap self-catering agent instead of the best agent.

The question you need to ask yourself is:

  • do you want to reduce costs? or
  • do you want to maximise net income (value)?

If you want to maximise income then we can assist. If you want to reduce cost then we suggest you use a cheap management agency.

Let me explain with an example:

The other day we met homeowners in Simonstown who want to change agencies. Their current agency only brings them high peak bookings. And when they clean they leave their home dirty. Blind and dumb agencies can get bookings during peak time.

While visiting we could see they work on maintaining the house. They just replanted entrance plants (a waste of good money as you want your garden maintenance free as is possible).

After the pleasant meeting, we sent them our costs.

This was their response:

We had been recommended to another group out of Fish Hoek so will need to meet them, consider all your points, advice and costs, then we promise to get by to you early next week with a decision.
The cleaning costs do seem steep for the monthly clean with no guests, does this include window cleaning, how thorough will this be?

Will anyone keep an eye on our plants, especially in the courtyard? I believe, an attractive courtyard and garden creates an ambience which is as important as the house. So far on every visit, we have had to replant the courtyard!

I am sure you can see the frustration they shared; need more advice on cost, our cleaning cost is high and the cost in replanting the court yard plants. The attention is on inputs.

Never in this email did the owner question or asked how we could maximise her income (output). I expected her to want a nice income after costs.

In general we expect owners question us on the income they can expect after costs. That’s our aim and our marketing management philosophy is based on responsible maximising of net income. We want to bring happy guests who share great reviews and who return over and over paying good money to stay in a lovely home. We want happy owners with house occupied between 30% and 60% through the year.

If your focus is on cost reduction and not on optimising net income then we are on different paths before we start. If you want make good money from your home and pay your costs with a smile talk to us.

Going forward with maximising income homeowners:

  • You can complete our¬†application form.
  • You need to tell us how much you expect to make net per year after our marketing costs and marketing costs. You may want to pay the bond plus 10%. You want may want an annual net income equal to 4% of the value of your home. Just give us a ballpark figure.
  • We will plug your figure into our annual rate calculator and tell you if we can make you more or less than your aim. If we can make you more or equal then we can agree on the goal and be responsible. If we think your aim is too high then we can try but will not be responsible if we don’t meet it.

Have a lot of fun.


Johan Horak

At we do what believe is best for the guest and the owner. If not we walk away.

May 2, 2015


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