Tap Into The Profitable Holiday Home Market To Suit Yourself

September 23, 2015 Facebook Twitter LinkedIn Google+ Uncategorized

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Homeowner; today you can tap into Cape Town’s popularity and earn income from your lovely home in and around Cape Town. A very high demand for quality self-catering accommodation sees owners enjoying a great return on their assets.

  • How would you like to make R140 000 over 14 nights during peak summer?
  • How would you like to make a good income to suit yourself?

Yes. This is what many upper class 4 to 5 bedroom homes in the most popular Cape Town holiday suburbs generate. Obviously the further you are from Camps Bay or the beach the less it becomes.

And owners are doing it to suit themselves – to fit their lifestyle.

What is interesting is that Cape Town has the mad season – 14 nights over Christmas and New Year. Everyone who has money is here. They spend. And they are desperate. Very! Listen to this:

A few years ago when it was still cheap, an owner wanted to rent his place on Clifton over December peak for 21 nights at R25 000 per night. You stay 14 nights. No problem. You pay for 21 nights. And the owner got a better deal. The guest paid for 21 days but only stayed 10

This is the time when the bull wins. I am not suggesting you do the same. My intention is to show you what demand there is for quality Cape Town homes. And all our homes over peak demand a minimum rate equal to 14 nights.

What about the rest of the year?

If you think the who’s who flock to Cape Town over peak then wait for February. February has probably the best weather in Cape Town. And the rich and wealthy flock here like swallows. They want to stay for long when its sunny – away from the cold European winters.

High demand months include January, February, March and April, October, November and obviously December. The slow months are winter months. In general you can expect at least 30% occupation over the year if it goes bad and your house is average.

If, however, your house has all the things people want then you’ll easily reach 50% occupation and when your house is well established 80% occupancy is possible.

What can you expect to make with a 4 to 5 bedroom self catering home in Cape Town?

This is obviously not an easy question to answer because it depends on location, quality finishes, views, number of independent reviews, high-quality photographs, features and rates.

Let’s consider a few scenarios where we look at two homes; one where the owner wants an annual gross income after commission of a million rand and one of R500 000. Let’s assume they are identical homes, one in Camps Bay and the other in the Southern Peninsula.

cape townexpectedincomefromselcatering

The above figures are typical for a really nice 4 or 5 bedroom self-catering home in Cape Town.  Where the owner has bought into our philosophy to maximise income. And we operate the home on a sole mandate within the agreed rules set by the owner and ourselves; very important for our mutual success.

This is obviously a lot of money!

Yes it is. But before you count the money you need to be aware that these figures change a lot the further you are from the beach, from Camps Bay Clifton area, the number of bedrooms you have and how immaculate your home is. And we will evaluate this with you.

Now that you have an idea about the income let’s consider your concerns:

You are worried about renting your home out to every Tom Dick and his other party mates!

Many owners feel the same way. Exactly. Initially, they are so apprehensive. But then, after the first booking, and the house is still as it was before……

Then the next booking and the guests rave about the house. And the owner feels proud. After a few months you, as the owner, look back and think;

“That was a lot easier than I ever thought!”

Just the other day we received this review on a new house we manage and market:


How happy do you think this owner was when he received such a review?

Let me get back to your concerns.

We do understand your concerns. Anything can happen. But that’s why we are here to assist you.

We have been in the rental and home management business from 2007. Initially long term rentals. Then short term. And we have a system that returns us 5 star reviews from happy guest and owners.

And your commission?

Many owners are concerned about agents commissions. We just had an owner, who could manage her home by herself, decided today to entrust us with all her marketing and management issues. She knows that she will make more money trough us than on her own. This means that she will get more money over a year…..lots more. If she was worried about our commission then she should not have done business with us. Our motto is that it’s our objective to maximise your income. We ask you what you want and we try and give you lots more. And then we add our commission so that the rate is fair to you and to the guest. Is that what you expect?

If not than we are not the agents for you.

But you want protection:

In place, we have thorough terms and conditions as well as an indemnity clause. We ensure we have a market-related breakage guarantee. And if you needed it we can get the guests to purchase a guarantee of R250 000 and more. The are other options as well.

One of the international sites we market your property on offers the following:

self catering owner's guarantee

This is a free guarantee and only if you allow us sole marketing rights and only applicable on guests from this international marketing site.

What about the kind of people who will be accommodated in your home?

Again, this is a common issue amongst owners. And a valid one. As there is no full proof guarantee. But…..

…. as soon as owners discover that we do some profiling on people then they feel a lot more at ease. For example; if you have 10 people wanting to stay and they are all between 20 and 25 then there’s a problem. But when you have two couples with three kids each then it makes a lot more sense to accommodate them. It’s simple logic. And if applied well, it brings peace of mind.

In general we have found that people who pay R50 000 to R300 000 and more for a holiday qualify themselves.

And they pay this money at 50% now to secure the house and 50% 30 days before arrival. This is not your average Joe. This is not a long term tenant who does not have another home. Short term rentals are neat. And before you know it the guest is out of your house.

Initially I started off by saying:

Tap Into The Profitable Holiday Home Market That Suits Yourself

And you may think I have not addressed the “Suits You”…

Well let me.

We know our business. And we know it well. But that does not mean we are arrogant. We understand you have a lifestyle. Your home is part of your lifestyle. You may want us to maximise income and manage your home well, but all of this must be done to suit you. If we cannot design a marketing and management plan to suit you then we have not achieved anything.

  1. You give us your lifestyle rules that suit you.
  2. You tell us how, to whom and when and for how long to make your accommodation available.
  3. You give us what you expect as an annual return.
  4. We evaluate your expectations and if we feel we can meet them then we have a deal.
  5. As soon as we agree then we have your okay to go out and maximise income that suits you.

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Some of high demand places are obviously those close to Cape Town’s Beaches; Camps Bay, Clifton, Llandudno, Sea Point and other.

Some of the untapped regions are False Bay; Simonstown, Fish Hoek, Kalk Bay, St James, Noord Hoek, Kommetjie, Muizenberg, Misty Cliffs and Cape Town’s southern suburbs and the CBD.

“Thank you for the use of this lovely home during our too-short stay in Muizenberg. The home was everything described and even more. the lake and out door activities kept us busy and entertained throughout our stay. The home was clean and neat and beautifully decorated. We thankful for the wood fire place that looked newly installed – as it kept us warm during a particularly cold night. The pool was clean and well maintained and we were lucky enough to experience a day warm enough in which to enjoy the pool. It is completely private and just what I wanted. I would certainly recommend this home to all my friends and family. ”
Shabeeha Ahmed RashidHolidaymakerJohannesburg, South Africa