Holiday rentals, particularly in top destinations like Hermanus, have become increasingly popular in recent years, as more and more people look to rentals to supplement their income. However, while short-term rentals offer flexibility and can be financially rewarding, they can also be a nightmare if not handled properly. This is particularly true if you decide to rent out your property on your own, without the help of an agent. 

In this blog post, we'll explore short-term rentals with Seeff Short-Stay Rental Agent Cisca De Vries. If you’re a homeowner looking to enter the world of short-term letting, this information will provide valuable insights:

• Why use an agent?

• Tips for setting up your home

• Increasing your bookings

• Protect yourself

One of the first questions you may be asking yourself is why should I use an agent?

Why use an agent?

While it may be tempting to manage the rental property yourself, there is a multitude of benefits to using a reputable agent:

• A reputable agent can manage your bookings to prevent scams.

• They provide an attorney-approved booking agreement that offers you protection via a cancellation policy with penalty fees, a limitation on the number of guests, noise levels and hours to keep your neighbours happy, and so much more. 

Tips for setting up your home

• You don’t need the finest top-of-the-range furnishings. Keep it simple with a simple range of crockery and cutlery that is easy to replace. 

• A great agent can give you advice on the expectations and standards to qualify for short-stay accommodation, that will ensure you get regular happy guests. 

• It is vital that the property is neat and well-maintained. This protects your reputation and increases your booking conversions. 

• Keep a full inventory list of everything in the house. Seeff Hermanus makes use of property inspection software to compile comprehensive records of all items in the house and the condition they are in. 

• Don’t leave anything in the home that you are not comfortable for guests to have access to. Pack away Gran’s tea set, your fine dining china, and anything that is valuable/ sentimental and would benefit from being stored safely. 

• Remember that candles are seen as consumables. Agent Cisca de Vries recommends removing candles and oil lanterns. These pose fire hazards and wax is a nightmare to get out of carpets and couches. 

• All homes should supply emergency lighting for loadshedding - rechargeable LED lanterns work well. 

• Some form of power backup will increase your bookings, even if it is a simple powerbank setup to operate the TV and wifi. Guests are concerned about access to streaming services.

• The better the power solutions for loadshedding, the higher your rental returns could be. 

The short-stay market is unpredictable. After COVID-19 there has been a large increase in the supply of short-term rentals, and with the worsening situation of loadshedding, there has been a decrease in European visitors. These swallows that fly over for the warmer months used to visit between mid-January and leave at the end of April, but this has shortened to visitors leaving in March. 

Increasing your bookings:

• Set Competitive Rates: The increase in the supply of rentals and the decrease in demand means that you may need to set competitive rates. By 2024, it is predicted that there will be an increase in demand for short-stay rental properties again. 

• Take Great Listing Photos: Great photography sells, as a picture literally paints a thousand words as the old adage goes. Cisca arranges excellent photography for her clients at no added cost to them. 

• Try to be Pet Friendly: Allowing pets will increase your bookings, especially for longer visits. Kennels charge exorbitant rates over the festive season (if they have space at all) and everyone would rather spend that extra on bringing the whole family along on vacation. 

  • Keep in mind that you may ask more for cleaning services, and that generally pets are taken along for outings so separation anxiety and consequent bad behaviour shouldn’t be an issue. A good booking agreement will cater for the rest.

• Respond to inquiries and reviews quickly.

• Have a guest welcome package: This will give you an edge over competitors, as well as create a memorable experience for guests.

Protect yourself:

• A breakage deposit is very important. BUT, it can’t be more than one night’s accommodation fees. If the breakage fee is too steep, you won’t get bookings. A proper agreement will protect you in the event of more costly mishaps.

• Have a local contact in case of any emergencies. This can be a neighbour, family member, or property manager. 

• Have an insurance policy in place to protect you and the guests from any unexpected events.

Short-stay rentals can be a lucrative option for homeowners, but it is crucial to approach it with caution and the right strategies. Working with a reputable agent can provide numerous benefits, including booking management and protection through a lawyer-approved agreement. Setting up the property correctly, protecting yourself with a reasonable breakage deposit, and implementing power backup solutions can increase your bookings and rental returns. 

With the unpredictable short-stay market, setting competitive rates, having great listing photos, and being pet-friendly can help attract guests. To sit back and capitalise on your investment with peace of mind, contact Seeff Hermanus. For any property law queries, contact KVV Du Plooy Inc. Let’s make this rental venture a prosperous one.