As the corporate world increasingly enters the short-term property management space, so too does the deception that we, as guests, are led to believe that the Host is a real person.
Reading a recent article in CBC news, this talks about how mainstream corporations in Canada are putting stock standard smiling faces, as the host to their properties. (source: https://www.cbc.ca/news/business/biggest-airbnb-hosts-canada-corporations-1.5116103)
This practice is not just limited to overseas, as other mainstream Airbnb Property Management corporations are in play within Australia.
As with every large-scale business, the model of outsourcing services is common practice to keep costs down. However, for us as a guest, travelling and staying in Airbnb’s / Short Term properties, the personal touch can undoubtedly be lost with outsourcing services…
SleepOver Brisbane has the reputation as Brisbane’s Boutique Property Management company and constant feedback on the personal touch that we provide.
Recently we were contacted by a client who has used two different mainstream Airbnb Property Management, and like some of our existing clients, have been let down by them with poor communication (both with guests + themselves), cleanliness & inadequate management.
Mainstream Corporations also ‘proudly’ state how they provide hotel quality linen.
This can also be read as outsourcing their linen + the cost associated with supplying, laundering and delivery.
Boutique Companies generally will keep their linen ‘in-house’ and therefore tighter quality control + a lesser cost for laundering.
Airbnb works with a commission of the nightly rate, for using their website;
- ~ 3% is taken from the host
- ~ 12% is paid by the guests
e.g. $100 nightly rate = $97 Host receives, and $112 Guest pays
The Cleaning / Linen fee is not subject to commission
So, back to the model of mainstream corporations outsourcing their services…
The cost of supplying, laundering and delivery of linen can be ~$70 for a 2-bedroom apartment.
The cost of contracted cleaners completing a 2-bedroom apartment can be ~$70.
According to AirDNA, the average nightly rate of a 2-bedroom apartment in Brisbane is $138
Doing the maths… the cleaning + linen fee adds to more than the nightly rate…
You’ll also find that mainstream corporations operate on a two-night minimum stay (undoubtedly to justify the cleaning fee), but also boast high occupancy… how??
By reducing the nightly rate (the owner’s income) this helps attract guests / occupancy, but ultimately the rental income is not so great for the owner and the profit on the cleaning fee is not subject to commission.
While this news story may be interpreted as SleepOver Brisbane v Large Mainstream and how our services are better… it is not intended as such (well… maybe a little )
Our clients have provided us with their experiences with mainstream providers and since SleepOver Brisbane started, we are yet to lose a client to mainstream corporations…
If you are considering renting your property via short-term and want the personal touch for the guests + yourself… contact us & we will be happy to help!