(10 of 10) What are the costs involved in managing and marketing your accommodation?

There are two costs categories:

  • Marketing commission
  • Management costs.

If you decide to use a self-catering rental agency you can manage yourself and let them only market your home or you can choose to let them market and manage. In general the agency marketing commission is 20%. This does not include management.

Some agencies add a percentage for management but we offer a fee per incident. Therefore a maintenance free home will benefit from lower management fees.

Management Incidents include:

  1. Meeting upon arrival – exchanging keys and briefing the guests.
  2. Greeting upon departure collecting keys, follow up on issues like breakages etc.
  3. Cleaning – once a week and upon departure. This includes washing of linen, cleaning of the home
  4. Garden and pool – this is normally subcontracted  by the owner.
  5. DSTV, WiFi, electricity costs the owner pays direct to providers.
  6. Maintenance issues – we start the process through owner and see that responsible people gets access. Giving access is a fee incurring activity.
  7. Resolving problems with any of the above.
  8. House manual

In order to cut cost some owners opt for key safes. You can get a fancy one or a plain one.

The biggest challenge …… is handling the key transfer. Often guests flights are delayed or they just get in really late. Having someone meet them at the apartment can turn into a logistical nightmare very quickly.

You may say that this adds up quickly.

Yes. But again if you are blinded by cost then you are not seeing the income potential of your home after costs. By all means you can do it for less. But can you generate sustained high net income at 50% to 80% occupancy?


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