Agents or TA/HL

[Jeddy]

Hi again

I've now had three agents to look at my 1 bed let and the differences between the three agents has surprised me and left me a bit unsure. The prices they suggest I will achieve per week and the number of weeks they say it will let varies a lot between the three agents.

I don't know what to believe and am wondering whether to try doing it myself just via TA/HL to start with, rather than tie myself into a long contract with an agent.

I can't seem to find a clear pricing policy on the TA/HL website other than the 3% fee. Can anyone point me in the right direction to work how much it would cost to use them.

Thanks

[russellt]

Can anyone point me in the right direction

Go to the HL/TA online help centre. (Mmmm, maybe you can't see it if you are not registered)

Fees: On commission listing, owner pays 3% + VAT of the full rental amount.

Guest pays between 5% and 20% of the rental as a booking fee. 5% is an HL/TA joke, I think. (Humour, ark, ark!). It's typically 14.5% and rising.

You need to also consider whether you are happy to take bookings without knowing who the guests are. HLTA withholds this info until guest has paid deposit and balance. If you are new to renting, and are not local to the property, this can be unnerving. See http://www.laymyhat.com/forum/viewtopic ... highlight= for info.

Tho', with HLTA commission, you can try it, then walk away. Not so easy with a longer-term agency contract.

(Keep searching LMH for advice. Lots of good stuff on here!)

[Jeddy]

Thanks russellt.

So they get money from the guest, I hadn't realised this and wondered how they do it for just 3%, I thought there must be a catch and perhaps some hidden charges. Ok so it's quite good for me, 3% is a lot better than the 20% that the agents charge, but how do the guests feel? does anyone book this way or does it put everyone off?

I'm wary of signing up for a long contract with an agent that could turn out to be a nightmare, they seem to have so much control over the prices and marketing, and also being sole agents is worrying.

I'm wondering about your point regards the guest info. I'm new to this so apologies here but how would it affect me if I don't know the guests details at time of booking? (don't all shout at once!) I'm not sure what I would do with that info if I had it sooner, do you refuse bookings or deal with it in other ways?

Thanks

[Hells Bells]

My next three bookings are all from listings with either HLTA or HA/OD. One is from Australia, and chose to pay the fees (think he is HA). I have a subscription listing, so got paid within a couple of weeks of booking. He could have saved himself quite a bit by replying to my email directly, but perhaps it was easier for him to pay that way.
One TA one I declined as it wasn't the right arrival day, she then found me elsewhere and rebooked on Sun-Sun saving us both some money, and I got payment in advance.
The final one booked via HA and then realised he'd paid over the odd,once he'd done a and asked me to cancel. I did so stating 'at guests request', and no fees were payable.
He also rebooked via my website.

[russellt]

does anyone book this way or does it put everyone off?

It doesn't put everyone off, but there is a growing recognition among guests that, if they can go direct to the owner, they'll likely save money. The question is then whether they can be bothered to do so - google searching, approaching the owner, etc and all that - and is there a mechanism that will enable them to have some level of confidence that an owner is who he/she says they are?

Also, you should consider that, if you are receiving enquiries/bookings after HLTA has added its 14.5% fee, then (in my opinion) the sum of your price + the booking fee = the market rate. So, it can be argued that you ARE indirectly paying the booking fee because it represents a big chunk of the market rate for your property.

Of course, the counter argument is ' would you have attracted the enquiries/bookings without the help of the HLTA machine?'. That's the question we are all asking ourselves. And that's why there are so many new services popping up, and a renewed interest in doing our own marketing. Eg if we spent say 8% more on additional marketing(websites, independent marketers, billboards, etc) would that generate the same level of enquiries/bookings, and save us(by way of the guest) from having to pay HLTA's 14.5%?

With that, and the other constraints being placed upon us by the likes of HLTA, et al, many owners appear newly invigorated to try it themselves rather than handing off the marketing to the big boys.

how would it affect me if I don't know the guests details at time of booking?

I don't like handing the keys to my property over to a guest when i don't know who they are, and haven't had a chance to vet them. Paranoid? Maybe, but when i hear stories of over-occupancy, stag/hen parties, etc turning up, I'd rather know who they are and have agreed the profile of their party before I accept their booking.

Also, be aware that HLTA's guest profile field on their booking form is woefully inaccurate. If it says 2 adults, it is most likely wrong. I have seen so many errors. The 'couldn't care less' attitude of HLTA simply invites(on purpose or in error? - who knows?) over-occupancy or dissatisfied guest experiences.

Fun, in't it?

[Giraffe]

Hello Jeddy. I had a local agent for many years, but in 2015 I took over the bookings. I started and remain with subscription on Owners Direct, and commission with TA. I also have around 50% of my bookings from other personal sources.
2015 - 50/50 bookings from each listing site
2016 - only 1 from TA, bulk from OD
2017 - none yet from TA, all from OD to date. Spreading the annual subscription costs across the OD bookings averages out at around 4% of each booking charge this year. When more bookings come through this figure will reduce. My visitors pay no extra fee above my price as I do not allow OD to take the bookings. I much prefer to deal with my visitors directly and obtain all their information upfront so I am not unhappy at the drop off in TA commission bookings.

Others on LMH have different experiences with TA and OD. There's nothing stopping you using both to start with if you wish. And of course there is Nigel Goodwin's new listing site which looks good.

[Jeddy]

If I went with OD and HL, how do I prevent double bookings? (that is if I get any bookings at all) is it just a case of logging on and amending the calendar asap?

Thank you

[Hells Bells]

Both are Ical compatible, so you can share it across platforms either by using one central calendar or simply exporting one to the other.

[Cymraes]

Thanks russellt.

So they get money from the guest, I hadn't realised this and wondered how they do it for just 3%, I thought there must be a catch and perhaps some hidden charges. Ok so it's quite good for me, 3% is a lot better than the 20% that the agents charge, but how do the guests feel? does anyone book this way or does it put everyone off?

I'm wary of signing up for a long contract with an agent that could turn out to be a nightmare, they seem to have so much control over the prices and marketing, and also being sole agents is worrying.

I'm wondering about your point regards the guest info. I'm new to this so apologies here but how would it affect me if I don't know the guests details at time of booking? (don't all shout at once!) I'm not sure what I would do with that info if I had it sooner, do you refuse bookings or deal with it in other ways?

Thanks

The agents are quite sparing with the information they pass over to you. I was with Sykes who definitely underpriced me and all I got was name of lead booker, email address and telephone number.

And I agree with you - the agencies tend to forget it isn't THEIR asset that they are letting out. I went with Sykes initially as they could fill the property for the summer which I wouldn't have been able to do myself ( we weren't ready to market until mid July). If you use an agent insist on a damage deposit. Sykes for one don't like it but they wriggle out of any responsibility for guest damage and they will allow you to have one if you stick to your guns - you're in a much stronger position before you sign the contract!

I gave notice to leave them within months but I was still tied in until the end of the following September.

HL don't release guest details to you until the guests have paid the final balance. I'm still waiting for HLs payment to me for the NY bookings to hit my bank account although the guests have been and gone so it's hard on your cash flow. HL are sitting on £000s of money that I'd rather was in my account not theirs!

Most of my booking come via my FB page or the website now which is great. It's definitely hard work though - constant plugging away which of course you don't need to do with an agent. However for 20%+VAT I'm happy enough to do it. It makes the difference between an acceptable profit and a bare break even.

[e-richard]

I don't like handing the keys to my property over to a guest when i don't know who they are, and haven't had a chance to vet them.

My property is in Portugal, and managed by local keyholders. I live in the South of England and my guests come from Scotland, Finland, France, Canada, and even England. I am wondering how one can vet them?

Short of inviting all party members for a face to face interview, check through interpol for any criminal records and get hold of copies of their passports, birth certificates and a reference from solicitor, bank manager and office manager, I wonder...

What does "vet" mean ?
And what can it realistically achieve ?