Self Catering Rates: Advice To Cape Town Home Owner: Learn To Crawl Before You Run
One of our very trusted and landords in Newlands asked me for advice on how to set rates for her luxury 10 sleeper holiday home in Newlands Cape Town. This is what she asked me:
Please give me suggestions re ratesI’ve been told by others that my rate is too low?!Look forward to your ideas and adviceI’d like to maximize use of house so not too phased re min stay
This sentence concerns me and I have written about it a lot.
I’ve been told by others that my rate is too low?!
Bragging about high rates is useless. All that matters is what you have banked after a year. Take it slow and learn.
In other words, we (you and your short term rental agent) have to crawl before we run. This may not be the way you work. As we crawl we learn and can adapt. This means that we can generate a nice income and when occupancy is too high we know rates are too low. And it’s easy correct and increase rates.
If we start high we may get no enquiries. But while we get nothing we learn nothing. We don’t know if it’s because of the house, the location or the rate. And all you can bank is greediness.
If you are looking at maximising your income then these rates are potentially high. If you don’t really care and just want a nice catch every now and then go for it. Great if you win not an issue if it’s empty.
I may be wrong, but I prefer to be wrong and bank money, than keep my friends happy with my high rates on paper.