Data by Bnbsitter highlights unignorable rewards of using on demand concierge services when renting out property short term.
LONDON – New data collated by Bnbsitter, the startup that provides on demand concierge services for anyone seeking to rent out accommodation short term, has highlighted the extent to which rental owners can reap the financial rewards of delegating their property management activities. According to their study of 2,000 hosts across 13 cities, delegating the mundane day-to-day activities of renting properties short term – such as key drop-offs (guest check-in and check-out), cleaning, laundry, replenishment services and guest coordination, owners can immediately increase revenues by as much as 30% for two main reasons.
In the first instance, savings of up to 50% can be made just by focusing on the clever management of a property. By using on demand services instead of traditional property management agencies, owners can avoid long-term subscriptions and pay “a la carte” for the services they need. For example, a traditional agency often charges up to 50 euros for a check-in service. With an on demand service such as Bnbsitter you’re looking at more like 19.99 euros. A price differential for cleaning services too. Globally, property owners pay up to 30% of their monthly income to agencies but no more than 10% with Bnbsitter.
Secondly, revenues can be boosted via increased availability of properties due to the convenience and efficiency of instant replenishment services. Where a property may have traditionally lain dormant while hosts prepare for their next guests, a new breed of concierge services actively look to instantly replenish a property offering property owners the chance to offer longer lets than previously. Data highlights that it usually takes up to 48 hours to prepare an apartment for new guests. With on-demand services, arriving guests can be welcomed the same day as departing guests, allowing a higher profitability of the rental. Indeed, in this way, owners can increase their monthly revenues from guests bookings by 15%.
Biagio Tumino, Co Founder and COO of Bnbsitter said, “Until now property owners may have considered off-loading the hassle of these tasks to property service agencies but could have been put off by high costs and the impression they could make more money if they simply undertook these activities themselves. The reality is however, that outsourcing the mundane or time-consuming elements of renting a property frees up owners to do more top level activities such as promoting their property to holidaymakers and getting on with everyday life.”
For those aiming for the lucrative “Super Host” status (hosts who go the extra mile for guests and provide the highest level of service), On Demand services are a must-do in order to tighten management of properties and ensure a smooth, consistently high standard for their guests – especially when many bookings are last-minute and thus demand a flexibility of hosts that is difficult to maintain unassisted.
Bnbsitter’s data arrives in the midst of much discussion over the positive economic impact that short-term rental companies such as Airbnb and HomeAway are having. In June 2013, Airbnb announced the results of a study, which evaluated the economic impact of Airbnb guests and hosts in cities across the world. The results showed significant economic boosts for cities across the globe, for example, Airbnb generated US$824 million in economic activity in the UK and supported 11,600 jobs and €185 million of economic activity in Paris, and supported 1,100 jobs over the span of a year.
The study also revealed that Hosting enables cities’ residents to be more entrepreneurial and pursue nontraditional forms of work. In particular, Hosting is proving particularly vital to the self-employed, freelancers, or part-time workers who make up a significant percentage of the Airbnb community of hosts (42% in the UK). By renting out their property, owners are garnering much needed additional income to support their chosen careers. The savings and potential 30% increase in revenue that On Demand services can enable are clearly great news for this financially pressured segment of the workforce.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
