Maintaining a Profitable Short-Term Let

In the previous blog we talked about preparing your property for a short-term let, now that it’s prepared this guide will show how to maintain a profitable listing

 

Understand the Algorithms

 

One of the common questions we get when a new property has been listed is ‘Why is the price so low?’

Simply put when a new listing is put on you are at the bottom of the search results after your ‘New Listing’ status disappears, this means you need to get people through the door and get some good reviews before you move up the list.  The easiest way of doing this is to crash the price for a month or so, get some good reviews and maintain your response rate and you will start climbing.  It’s imperative to understand that the Algorithms of each site work on occupancy, page views/booking rate and price.

Some of the best looking properties I have seen on Airbnb are £150 a night and at the bottom of the search results – increase your occupancy and lower the price until you find that sweet spot that puts you in front of competitors

Currently our best performing listing achieves 90% occupancy which is almost unheard of, for the reason that we reduce the price and focus on occupancy

 

Use Pricing Software

 

Not 100% sure which conference is in town this week?  Don’t worry about it – Use pricing software and you will never again have to worry what concert or conference is on, it works with algorithms and data in your City to automatically adjust the price dependent on demand, it can be quite cheap and will help maximise your revenue in the busy periods and reduce the price to increase occupancy in the quiet months.

A top tip is always check the prices manually, I don’t like gaps in the calendar and prefer to sell a night below the minimum than have an empty listing.  Adjust the price if there’s only a few weeks to sell out a day and increase your chance of last-minute bookings.  If you want to get really geeky you can set up customised rules

 

Automate The Process

 Consider using a channel manager which allows you to send automated messages.  This is specialist software which syncs to your account and allows a listing and calendar to be shared across various channels, it is especially important if you manage multiple listings.  With the best will in the world the chances of forgetting to send check-in instructions on occasion is quite high.

If you have cleaners you can give them access to the calendar so you don’t have to call or email them every week to schedule the cleans

 

 

Ensure Good Reviews

 The main two factors that guests use when selecting a property are the pictures and the reviews.  As shown earlier the algorithms are important to ensure you have a highly visible listing on Airbnb, booking.com and Expedia.  An essential part of this is the reviews you received from guests, so what can you do to ensure good reviews?

 

Automated messages with check-in instructions help keep the communication smooth but regular (and quick) communication in response to special requests and information are great for guests.  Gallus Property always create a handy guidebook with not just check-in information but directions, parking information, and a comprehensive guide on how to work everything in the property.

 

Other important tips for good reviews are to honestly solve all problems as quickly and effectively as you can, small touches like a welcome pack, coffee machine and toiletries are great to keep guests happy.

 

If you need more hints and tips then get in touch and see how we can help manage your property