Yeah, yeah, yeah. I know life isn’t fair.
Doesn’t mean I don’t still want it to be.
I’m pretty sure you’ve all figured that out by not just the content of my posts, but the tone.
Here’s the #RadicalHonesty I want to share with you this week.
I believe that all of your rental properties should be categorized and priced according to a tier.
Not by size, but by quality and amenities.
This is NOT to punish or reward anyone. It's just to make everything a bit more fair for guests and owners alike.
Wouldn't that be nice?
Look, I will be the first to raise my hand if anyone asks whether guests can be a major pain in the ass. Of course they can.
BUT, you have created expectations for them, based on both descriptions and photos of your properties. If they have handed over their hard-earned cash, they deserve a property that lives up to those expectations, whether that's basic, comfortable or luxury.
If an owner can’t or won’t upgrade tired furniture and invest in matching dishware, etc., then that property needs to be rated as a basic vacation home.
If the owner does just the bare necessities, like upgrading the stove to a basic white electric and bedding to one step up from cheapest, that should be rated a comfortable vacation home.
If the owner goes all out, with stainless steel, granite, the latest tech, etc., that home should be luxury.
Or whatever label euphemisms you want to use. :)
All these labels should coordinate to prices. That would, of course, vary highly with your market. But the universal truth is that people shouldn’t have to pay as much for a basic “sleep and shower” home as they should for a “all the bells and whistles” home.
And while we’re at it, owners shouldn’t expect top dollar for homes they’re not willing to invest in.
There. I said it.
These tiers and rate structures serve two major functions.
It puts half the responsibility for earning potential squarely on the owner’s shoulders. And in my humble opinion, that’s exactly where it belongs.
If you use this system, and have everything in writing at the time you sign a new owner, it takes a lot of the burden off of you.
When an owner calls complaining about income (and you know they will….), you can simply refer them back to the document they signed.
“I understand that you’re a bit frustrated with your current earnings, Mr. Jones. If you’d like to upgrade your ______, according to our Furnishings & Amenities tiers, I’d love to increase your rates.”
And yeah, I know it wouldn’t be that easy. But it’s a place to start a discussion and, with your policies firmly in place, no one is being singled out. You’re just following your policies.
The second, and in some ways, more important function, is letting your guests know ahead of time what to truly expect when they walk in the door.
I don’t think guests get angry because a home isn’t fancy or updated. I think they get angry when it doesn’t look like the pictures and when the description doesn’t match the reality.
I also think that if you establish these tiers of homes and pricing, it would be so much easier to set reasonable expectations.
Renting a basic home? You’ll get a clean home, with a minimum of fuss and frills. This cottage is for families on the go, who basically need a place to sleep and shower.
Etc, etc. for the other tiers.
And enough already with the staged photos and the flowery descriptions. With all the noise and the competition out there, isn’t a better strategy to just tell the unvarnished truth? And find your loyal guests?
And go out and take new pictures once in a while!! It would be nice if a properties photos aren’t 5 years old.
What do you think?