It’s not always all rainbows and unicorns when a property landlord comes on board with us. We understand the initial hesitation, the reluctance, and even the fear – particularly if that individual is new to the world of short-term rentals.
During an age when your social media feed is probably teeming with ads about property management companies, rent-to-rent strategies, and building an Airbnb business with “high-profile experts”, it’s easy to assume that there’s got to be “a catch” involved somewhere.
As with any other industry, the property and STR space isn’t squeaky clean; but the smartest of people will do their due diligence. At Luke Capital Group, we invite questions and concerns – because this gives us the opportunity to put them to bed, with actual proof of how we’re helping our partners rake in the profit.
So, today’s article is especially useful for those of you who are still sitting on the fence about letting your property be managed as a short-term rental. We’ll cover how we helped one reluctant landlord generate 300k AED in direct bookings (in one enormous swoop), within just 14 days of listing their property with us.
Plus more… so, keep reading.
The Marina Apartment that has Raked in Hundreds of Thousands
It started in Dubai. Our team was in conversation with a landlord of a stunning marina apartment.
Not having delved into the STR scene before, this landlord had some reservations about the earning potential of their property, and whether it would be worth making a commitment with Luke Stays (our STR management brand) and parting with that small management fee – the lowest fee on the market.
We never go in for the hard, aggressive sell. So, rather than challenging the landlord’s questions, we simply listened and addressed their concerns with a detailed 12-month analysis of their property. This analysis outlined the earning potential of the unit if it was to be operated as a short-term rental, under our professional management.
We also assured the landlord that all the properties managed under Luke Stays are I-PRAC Approved and therefore guarantee 100% trust and protection for short-term rental guests – for whom lack of trust is the biggest barrier between them and a direct booking (so in essence, we are already miles ahead of the competition).
After learning this, and studying the data, our sleek website, phenomenal track record, and other accreditations, the landlord agreed to let us manage their property.
The landlord was encouraged (under our professional guidance) to kit their apartment out with new furniture. Fortunately, our team has an excellent understanding of what kind of furniture works best in short-term rentals, as well as what’s easy on the eye when it comes to interior design – as we have been doing this for all our other partners, too.
We also helped the landlord with keeping their property in line with Dubai’s DTCM regulations (Department of Economy and Tourism), so they would not be met with any unexpected fines – as the rules in this city are a little different. This was all seen to before the landlord’s apartment went officially LIVE for bookings to short-term rental guests.
As you can imagine, the landlord’s main goal here was to win back their investment, after having funded the property refurb, the management fee, and other costs. We knew that our tried-and-tested strategy would prove to be successful once again – but we didn’t realise just how phenomenal the return would be.
Within just 14 days of having their property listed with us, the landlord attracted an enormous 300k direct booking, which was paid by the guest in full. Needless to say, the landlord made their investment back (plus more) and is now set for the entire year.
Creating the Grounds for Success with Short-Term Rentals
Our success with the Dubai-based landlord was no fluke. In fact, our direct booking game in Dubai is at a healthy 90% rate on average (where only 10% of bookings come in from OTAs such as Airbnb and Booking.com), due to the large expat community and our savvy ways of attracting them.
However, this short-term rental model, along with the expertise of our team, thrives outside of Dubai, too.
Quite recently, we helped generate around 90K in direct bookings, off the back of a cluster of nine UK-based homes, designed as STRs. The homes were booked by a public transport company, which comes as no surprise – as our contractor deals tend to soar through the roof in the UK.
Once again, we ensured the properties were kitted out with the right furniture, were listed correctly, were marketed to the right demographics, and offered at a rate that would turn a healthy profit for the landlord – while still remaining reasonable for the guests.
It is never as easy as just listing a property on an OTA or a badly designed, to then simply wait for the bookings to come in. The reason we achieve life-changing success for landlords across the world is largely due to the systems and processes we have in place – that we’ve perfected to a T, over the years.
It is natural to have questions and feel some hesitation when you embark upon a career that is brand-new to you. However, a short-term rental model can help you earn up to four times more rental income, compared to standard tenancy agreements. Guests in general are easier to manage (when they behave badly, they’re not wrapped in cotton wool by the government like tenants are), and their spending potential is high if your property and the guest experience is managed correctly. That’s where we come in.
If you’re interested in generating thousands in direct bookings with your property like the many landlords who partner with us, get in touch with our friendly team now; and we can start by analysing the earning potential of your unit.