Letting during the holiday season, instead of entering into a standard rental agreement, presents three major advantages: profitability, flexibility and reliability.
The main advantage is profitability: letting during the holiday season represents a premium over standard rental agreements.
In general, we have estimated that letting during the holiday season in the large tourist towns and cities in Mexico,like Cancun, brings in 1.5 to 3 times more than the amount of a standard rental agreement.
Therefore, if you could earn $14000mxn by letting out a one-bedroom apartment per month, you could obtain between $24,000mxn and 28,000mxn per month by renting it out to tourists.
In terms of profitability, there is no comparison between Airbnb and traditional rental management: Airbnb clearly offers a distinct advantage in large Mexican tourist towns and cities like Cancun.
The second most significant advantage is flexibility: letting your property to tourists also means that you have the possibility of gaining access to your asset more easily since you don't have a long-term agreement with the tenants.
It is an attractive option in several scenarios:
you rent your main residence and you want to let it out while you are on holiday;
you rent a second home and you wish to let it out year-round during the holiday season - outside of when you use it yourself for holidays or business trips;
you are selling a second home and wish to let it out while waiting for it to sell. A standard rental agreement would not be an option in this case.
The third advantage is reliability. Unlike a rental management agreement, you have the certainty of not having to deal with rent arrears, since the reservation amount is settled before the guests arrive.
A new approach to letting: property management with a difference
Holiday lettings management is not the same service as the standard rental management offered by estate agents.There are three distinct differences:
Rental management must be considered as a service provision that delivers results. The more coverage a property receives, the more yield it generates.
It is also far more important to add value in terms of the equipment provided and interior décor since it is up to the owner and not the guests to give the property its identity.
Maintenance is much more important, given the higher level of wear and tear than in a standard rental agreement, even though this is generally more than compensated by the additional income that is generated during the holiday season.
Generally speaking, unlike an estate agent, a holiday rental management company will have to ensure they find new guests all the time, organize cleaning between each reservation, meet and greet the guests and so on.
There is a lot more work involved, which explains why the cost of Airbnb management services is around 20%, against just 5% for standard rental management.
Finding the right short term rental management service company to look after your holiday lettings
The major inconvenience of letting tourist accommodation is that it is time-consuming. You need time to find guests and to manage the lettings: meet and greet, cleaning, check-out, etc. This takes a considerable amount of time each week!
In addition to this, holiday lettings require a certain expertise. This consists of publishing an advert on several platforms, getting your property noticed (professional photos and SEO), ensuring quality management, etc.
This is why management services for holiday lets makes perfect sense. These organizations have a twofold mission: to manage your rentals, as well as adding value to your property so that you can let it out more often and obtain the best possible price.
Your management service must allow you to let on Airbnb, booking.com and Homeaway without this representing an additional charge for you and with the assurance of a quality service.
In short, holiday rental management enables you to benefit from all the advantages of holiday lets while avoiding the drawbacks.
Whether you have a property in the hotel zone or Cancun downtown, WeConcierge has the necessary expertise to look after the management of your holiday rentals.
Find out more about our Airbnb management service.
We are on-hand to help you with your holiday let.