Short-term rental management is a relatively new concept for landlords who have only ever been involved in “conventional renting” on their own.
The model itself is lucrative, exciting, and best for those who enjoy creative strategies that pay off in the long haul – however, it’s always a good idea to get crystal clear on expectations first.
When you hand your property over to Luke Stays, we will put the correct systems and processes in place to ensure it has the best possible chances of bringing in high revenue for you every month. In this partnership, the investment required from you is kept to a minimum; however, it’s important for you to know what this includes exactly – so you can plan accordingly and keep track of your expenses.
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The Management Fee
As your property starts earning you a higher rental income, as a short-term rental – you will of course keep the lion’s share of the profit.
Luke Stays asks for a short-term rental management fee of 12.5% plus VAT. The fee can sometimes fluctuate (slightly) depending on the current market and where your property is located (UK, Europe, or Dubai) – however, our management fees are currently the lowest on the market.
General Bills & Electricity
Just as you would expect to settle in your own home, the cost of heating, gas, and electricity will be your responsibility as well. In hot destinations such as Dubai, it’s wise to factor in the cost of air conditioning too (where obviously heating won’t be needed as much.
Cleaning is one of the most crucial aspects of property turnovers, so you will need to settle the costs of professional cleaners, who will see to things like bed linen changes, carpet cleaning, and more stubborn tasks such as bathroom, kitchen, and oven cleaning. The cleanliness of a property is usually the first thing potential guests and tenants notice.
Turnover costs may also include things like new replacement furniture (which we will always be at hand to help with), new carpets, etc.
In the event when minor property damage is not the guests’ fault, the cost of it will become your responsibility. For example, if the boiler breaks down or there is a leaky bath in the property’s bathroom, the landlord is expected to take care of it, respectively.
Essentially, the costs of having a managed short-term rental property is no different than looking after your own home. The only difference is, you will be earning a healthy rental income, off the back of your short-stay bookings and make this money back in no time at all.
Remember, this is an investment in your property – and in order to keep attracting the right guests, we need to ensure that your STR property continues to run like a well-oiled machine.
For more information about the short-term rental management services at Luke Stays, visit this page on our website.