We've gone another route by purchasing an expensive property in a tourist hotspot and needed a small mortgage to achieve this. Which gives us limited funds to spend on upgrading stuff - essential maintenance on our buildings and pool soaks up much of our resources.
I suspect that our gites are fairly spartan compared to many on here but, fortunately, our location just gets better and better (we're in a World Heritage Site) and we don't have to pay to upgrade the scenery or local attractions ! Swings and roundabouts.
Jim
Are the days of the amateur numbered?
I think that "professionalism" in holiday rental owners is more to do with ensuring the property is as it is advertised, that it is spotless, comfortable, well equipped with a responsible and caring owner/keyholder, and that the price is right. If a pool is non negotiable for someone, they will rent a place with a pool even if the décor of the property is not as modern and luxurious as a neighbouring property.
I was livid with a comment I had about one property this year, the interiors were a little 'dated' from someone who booked from a baby friendly website. The property is exactly as they appear on the advert, most of the furniture is Ikea and all the electrical appliances are under 2 years old. The fact is it is not a new renovation and I can't afford to rip everything out and start again. The people who booked presumably wanted something more like what one of my competitors on the same listing site offers, which is newly renovated properties finished to a high luxury spec, additional outdoor facilites, and meals. Needless to say, the prices of my competitor are double mine.
I was livid with a comment I had about one property this year, the interiors were a little 'dated' from someone who booked from a baby friendly website. The property is exactly as they appear on the advert, most of the furniture is Ikea and all the electrical appliances are under 2 years old. The fact is it is not a new renovation and I can't afford to rip everything out and start again. The people who booked presumably wanted something more like what one of my competitors on the same listing site offers, which is newly renovated properties finished to a high luxury spec, additional outdoor facilites, and meals. Needless to say, the prices of my competitor are double mine.
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charles cawley
- Posts: 1205
- Joined: Tue Sep 21, 2010 1:53 pm
- Location: Herefordshire, Shropshire, Borders
The market is going towards holiday lets that have been specifically created to appeal and professional management is one factor.. but not the only, one as Margaret highlights. There is also a demand for sound and well price cottages.
Our region is littered with under-used newly renovated properties which are not earning their way. In good times, the conventional wisdom in the UK was to sink money into property, now it has to earn its way. These new entrants will benefit from being modern and mainly laid out in the modern taste so they not far off being will suited to the cottage market. (Ten years time will see them looking dated and tired if continuing investment is neglected).
Our most successful lets, without exception, are in this category and some are doing very well. People like value; unless economic conditions become very dire (and that could well happen) the cottages offering top value will do the best. That could mean top quality at a good price, or sound and worthwhile at a lower price.
Some say that if the economy collapses, then the lower cost less sound cottages could find a lifeline just because they are cheap. But there is another way of looking at this: 30 years ago I briefly imported mattresses from Portugal. The range included 'The Relax'. My supplier told me it was such bad quality that Portuguese peasant farmers wouldn't buy it, because they knew it was not worth it. It sold well in the UK.
It is hard to predict the way the market will go in relation to quality and price. It might well be that the 'just because they are cheap' tendency will never really take hold, instead, people might be even more keen to get value and quality. When money is tight people tend to spend it more carefully.
The market is already split between high quality and well priced and sound at a good price. Both offer value in different ways. But whatever happens, the amateurs of the chintz and the 'they will put up with it' brigade who have done so much damage to the image of the UK cottage market have had their day.
Our region is littered with under-used newly renovated properties which are not earning their way. In good times, the conventional wisdom in the UK was to sink money into property, now it has to earn its way. These new entrants will benefit from being modern and mainly laid out in the modern taste so they not far off being will suited to the cottage market. (Ten years time will see them looking dated and tired if continuing investment is neglected).
Our most successful lets, without exception, are in this category and some are doing very well. People like value; unless economic conditions become very dire (and that could well happen) the cottages offering top value will do the best. That could mean top quality at a good price, or sound and worthwhile at a lower price.
Some say that if the economy collapses, then the lower cost less sound cottages could find a lifeline just because they are cheap. But there is another way of looking at this: 30 years ago I briefly imported mattresses from Portugal. The range included 'The Relax'. My supplier told me it was such bad quality that Portuguese peasant farmers wouldn't buy it, because they knew it was not worth it. It sold well in the UK.
It is hard to predict the way the market will go in relation to quality and price. It might well be that the 'just because they are cheap' tendency will never really take hold, instead, people might be even more keen to get value and quality. When money is tight people tend to spend it more carefully.
The market is already split between high quality and well priced and sound at a good price. Both offer value in different ways. But whatever happens, the amateurs of the chintz and the 'they will put up with it' brigade who have done so much damage to the image of the UK cottage market have had their day.
No web-site for now.
Advice about holiday letting
Advice about holiday letting
I guess I'm fortunate in a way as my season is pretty much all year round though I've had to invest in decent heating to achieve that. Since I started upgrading about a year ago there has been an increase in the level of bookings, I'm looking at 65% occupancy for 2011 compared to 57% in 2010 so I'm getting more bookings to help cover the cost of improvements. At some point I'll sell the apartment so need it to be modern and well maintained to give me the edge when the time comes.la vache! wrote:But for all this extra expense, you can't increase your peak prices. This is the dilemma I'm facing - all the extra 'upgrading' work and adding facilities isn't cheap, but I can't increase my prices, so the profit margin becomes even narrower.Marks wrote: I've just upgraded all bedding, towels and lighting plus added extra patio furniture and installed high speed Wi-Fi yet my peak prices cannot increase any more. Guests staying with me get excellent value for money.
Some guests just need a sympathetic pat. On the head. With a hammer.
I agree with Charles. These type of owners have had their day...even my sister-in-law who books on price, not decor has complained about the 'it'll do' brigade who think mis-matched furniture, cast off ornaments and a cack-handed approach to the decor will see them through.But whatever happens, the amateurs of the chintz and the 'they will put up with it' brigade who have done so much damage to the image of the UK cottage market have had their day.
I don't feel there's an excuse as you can decorate/furnish well on a budget (we had to), it just takes a bit of thought. Not everything is about luxury. For example I have comments all the time about the 'small touches' which were there from the beginning.
I think as long as you do whatever you can afford,well, that's the main thing.
I would no more include cast offs in a rental house than have them in my own home. Chintz is just not my style.
Here style is unfortunately key and I've seen that you can't expect to have a full season by not considering the decor and furnishings.
However we're lucky that this follows through in the fact that although we couldn't get away with things other markets could, we can charge much more here than in most other places.
Mouse
x
One martini, two martini, three martini floor!
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Hells Bells
- Posts: 13173
- Joined: Sat Apr 30, 2005 8:42 am
- Location: French Alps
- Contact:
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charles cawley
- Posts: 1205
- Joined: Tue Sep 21, 2010 1:53 pm
- Location: Herefordshire, Shropshire, Borders
We are lucky because most who come to see us either buy into the idea of the need to appeal to the market or we don't hear from them again. No one likes to say No.
But we declined working for some owners because they will not or cannot see that you need to give the market what it wants.
Some we stick by because, although they do not make much money for us, or we for them, they are professional in their approach and there are good reasons why they cannot immediately reach what we see as the ideal for the market. (No many of us are made of money).
We could not survive without doing this. The trick in our business is to realise that the key is supply of well managed sound good to high quality cottages. Advertising is costly, but when well controlled, it is a largely mechanical activity.
This is where some huge legacy booking agencies are failing. Professional cottage and holiday let owners need to be treated as their competence demands.
I like the small touches thing Mouse notes.
We sometimes advise owners who have prepared a bland room ready for accessories, to go for a colour theme or 'string'. This is a simple and quite potent way of quelling objections to booking.
The photos will show the thoughtfulness that has gone into picking up the same colour from ornament, to those useless but fashionable bed cushions, to, say, the predominant colour in a picture and then down to, may be, a the colour of the towels or the cover of a single book on the bedside table.
If done well, this can counteract objections such as the linen looks cotton mix and not Egyptian Cotton etc:. (I am not arguing for Egyptian Cotton, it's just an example).
But we declined working for some owners because they will not or cannot see that you need to give the market what it wants.
Some we stick by because, although they do not make much money for us, or we for them, they are professional in their approach and there are good reasons why they cannot immediately reach what we see as the ideal for the market. (No many of us are made of money).
We could not survive without doing this. The trick in our business is to realise that the key is supply of well managed sound good to high quality cottages. Advertising is costly, but when well controlled, it is a largely mechanical activity.
This is where some huge legacy booking agencies are failing. Professional cottage and holiday let owners need to be treated as their competence demands.
I like the small touches thing Mouse notes.
We sometimes advise owners who have prepared a bland room ready for accessories, to go for a colour theme or 'string'. This is a simple and quite potent way of quelling objections to booking.
The photos will show the thoughtfulness that has gone into picking up the same colour from ornament, to those useless but fashionable bed cushions, to, say, the predominant colour in a picture and then down to, may be, a the colour of the towels or the cover of a single book on the bedside table.
If done well, this can counteract objections such as the linen looks cotton mix and not Egyptian Cotton etc:. (I am not arguing for Egyptian Cotton, it's just an example).
No web-site for now.
Advice about holiday letting
Advice about holiday letting