Long- or short-term rental?
Meet Kasia and Michał
Kasia and Michał are the owners of a two-room apartment in Warsaw’s Mokotów district. They bought it as an investment and intended right away to rent it out long-term. They were looking to rent it out their modest apartment to someone working in Warsaw. Given its attractive location, the apartment quickly attracted tenants. There a few of who after renting for a year, left the apartment vacant for the entire vacation season.
Kasia and Michał used this time for minor renovations, but they didn’t earn anything from the property in that time. They were thinking about who their target group of clients should be when a friend suggested they consider vacation rentals. Kasia and Michał’s main fear about this kind of rental was the risk of too much wear and tear on the apartment and their lack of time and availability for guests. On the recommendation of a friend, BookingHost contacted the couple and, after some initial hesitation, convinced them to change to renting out their apartment short-term.
- Preparing the apartment for short-term rental as well as taking on a different target group
- Developing a complete sales strategy, both for high and for low season, as well as planning distribution channels
- Planning full logistics, cleaning, laundry and supply services, as well as minor maintenance work
Strategy and implementation
The BookingHost experts conducted a thorough survey of Kasia and Michał’s apartment in terms of its functionality, safety and comfort, as well as its outfitting and decor. The report of the home stager working with BookingHost suggested a few necessary modifications like removing the old and worn out flooring, securing the windows by adding locks and changing the lighting. Another effect of the outfitting and design survey was a list of items to purchase, including kitchen utensils, new textiles and a few decorative accessories. After the interior had been styled, a professional photo shoot was arranged, which could properly show off the qualities of the apartment. The interior face-lift made it possible to offer a competitive price for an apartment that was attractive to the desired target group.
Podniesienie standardu mieszkania poprzez rearanżację wnętrza pozwoliło na stworzenie cennika umożliwiającego dwukrotne zwiększenie zysków z mieszkania w skali roku. Strategia cenowa zaproponowana przez BookingHost uwzględniała sezonowość oraz warszawską, a w szczególności mokotowską konkurencję. Co ciekawe, zaproponowana stawka zaskoczyła Kasię i Michała – przyznali, że sami nie odważyliby się na ustalenie jej na takiej wysokości. To dość powszechny błąd niedoszacowania wartości apartamentu na wynajem, z którym BookingHost spotyka się nierzadko po przejęciu zarządzania nieruchomością. Ponadto zadbano o odpowiednią prezentację apartamentu na licznych portalach rezerwacyjnych.
Raising the standard of the apartment by improving the interior allowed setting a price schedule that would make it possible to double the annual profits from the apartment. The pricing strategy BookingHost proposed accounted for the seasons and the competition in Warsaw, especially in Mokotów. What’s interesting, the suggested rate surprised Kasia and Michał – they admitted that they wouldn’t have dared trying to set it so high. Underestimating the value of a rental apartment is a common mistake that BookingHost often sees when taking over the management of an apartment.
Proper presentation of the apartment on many booking sites was taken care of, too.
With its experience in managing guest services well, BookingHost prepared a full offer of services for cleaning, laundry, keeping the apartment supplied with toiletries, household products and basic items like coffee and tea, as well as communicating with guests and turning over the keys. This meant that all Kasia and Michał have to do now is accept the commissioned services.
Thanks to improving the interior we could suggest a rate appropriate for the new standard, the competition and the location, which allowed doubling the monthly profits in low season, and even tripling them in high season.
We could already dispel Kasia and Michał’s fears about not being able to properly care for guests and the apartment after the first week of working together, since their job was only to remotely accept our services.
Diversifying the distribution channels resulted in reaching a satisfying 80% occupancy rate in high season, and 60% in low season. The clear overview of current reservations and occupancy allowed Kasia and Michał to offer their apartment for their own friends and family to use, without any risk of conflict with guests from booking sites.
- We know the short-term rental market very well and are experts in the area of dynamic property pricing management. We work with the most popular booking sites in the world, which makes us able to achieve results that are incomparably better than those from self-managing rentals.
- Our professional team, starting with home stagers all the way through the cleaning crew, guarantee the highest level of services so that your vacation rental will always look great and offer guests the highest level of comfort.
- Relieving owners of the necessity of contacting guests, we guarantee at the same time that they will be completely satisfied, which we look to prove by reminding them to leave a review about their stay.
- The number of our satisfied clients is constantly growing, and more and more new clients are sent to us by others, which speaks for itself as the best recommendation.