Latest / Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights / Why your cheapest cleaner is your most expensive problem
Transcript
- 0:00Welcome to the House Planet Playbook, your go to guide for
- 0:03mastering short term rentals. In this special series, we're
- 0:06sitting down with 30 of the world's top property managers to
- 0:10uncover what really drives success in the vacation rental
- 0:13industry. You'll hear their stories, learn
- 0:15the key lessons they've picked up along the way, and discover
- 0:18the game changing tech they use to deliver 5 star guest
- 0:22experiences. If you're serious about growing
- 0:25your STR business, you're in the right place.
- 0:28We've also developed an ebook featuring the stories of every
- 0:32manager in this series and you can download it for free.
- 0:35Head to house Planet dot Club to find out more.
- 0:38In today's episode, we're chatting to Freddie Blunt from
- 0:41Red Kite in the Cotswolds. Stand by for a deep dive into
- 0:44five Star hosting, in house cleaning and how to deal with a
- 0:48horse on the loose. This special series is brought
- 0:56to you by Hostplanet and Hospitable, the smart AI powered
- 1:00property management software trusted by hosts worldwide.
- 1:03With Hospitable, you can automate guest messaging, sync
- 1:06calendars across platforms and manage your rentals with ease,
- 1:10all from one powerful, easy to use platform.
- 1:13If you're keen to run your short term rental on autopilot, try
- 1:17Hospitable today. Visit hospitable.com/houseplanet
- 1:21to see how the platform can save you time, reduce stress, and
- 1:25maximize your earnings. Freddie, thank you for being
- 1:27part of the House Planet Playbook.
- 1:29Let's start with you. What's the name of your company,
- 1:32where are you located, and how many rentals do you manage?
- 1:36So yeah, we're, we're Red Kite. We're located in the Cotswolds
- 1:40and surrounding areas and we look after 110 homes at the
- 1:44moment. So tell us how you got started
- 1:46in the world of short term rentals.
- 1:48Yeah. So it would have been 2012 now
- 1:52showing, shame showing, that's been quite a long time.
- 1:55But I joined a company called Love Home Swap and they were a
- 1:58sort of luxury home exchange website and we did some rentals
- 2:02as well as part of that. That kind of got me into the
- 2:05long line travel accommodation that business sold to Wyndham
- 2:09Hotels. And I then joined a company
- 2:12called Air Sorted, which had been founded about six months
- 2:15prior. And they did Airbnb management
- 2:19in it sort of, you know, bread and butter form, but bringing a
- 2:22very sort of technological and automation approach to it.
- 2:27And it was just rocket fuel. It was, it was extremely high
- 2:31growth when I when I joined, I think we had 90 homes agreed to,
- 2:36you know, 900 in London, expanding to Edinburgh, Dublin,
- 2:40Manchester, all over the UK to further afield, Madrid, Lisbon,
- 2:44Dubai, you know, you, you name it, 20 cities as turning up like
- 2:484000 homes that we were managing.
- 2:49So crazy growth ended up rebranding to to house.
- 2:54And so that's was my sort of, I guess, sort of melting pot for
- 2:58industry experience being there for about 5 years, seeing all of
- 3:01the good, the bad and the ugly and everything that, that, that
- 3:04goes with it. And then 2020, my wife and I
- 3:08moved out to the Cotswolds and I saw an opportunity to to start
- 3:12my own business leaning on my experience.
- 3:15And yeah, so Fast forward a little bit to today.
- 3:17Superb. So tell us about the business
- 3:19that you've started in the Cotswolds and just talk us about
- 3:23the the growth. Yeah, definitely.
- 3:25So I ran it initially as a as a side hustle for about a year
- 3:29whilst I was working at another company just to see whether
- 3:32there was an opportunity here. I thought there was.
- 3:35And so we're spending a lot of time, you know, on the train
- 3:38into London, commuting, testing, landing pages, copy and speaking
- 3:43to first big clients, managed to grow that to 15 or so clients.
- 3:48And that point where I could go full time and that was so that
- 3:52would have been yes. So that was January 2022 and
- 3:57that first year was really about, you know, can I get to
- 3:59the next phase now? Can I hire the next first
- 4:01employee and kind of building it up there.
- 4:03And then then for me, I think where I see the opportunity the
- 4:07the Cotswolds is we had a very long standing relationship of
- 4:11sort of, of holidays and holiday letting operators for me, very
- 4:17traditional, very quite outdated in their approach, you know,
- 4:22doing silly things in, in my opinion, things like restricting
- 4:26when owners can stay in their home, charging owners, you know,
- 4:30to stay at their homes. And, and sort of lacking that
- 4:33flexibility in the world that I had come from at house was very
- 4:37much let's use technology to, to make this industry as sort of
- 4:42flexible and, and, and reliable as possible.
- 4:45So sort of bringing that, that mindset and trying to make the
- 4:48end to end management as sort of effortless as possible and quite
- 4:52a rural setting. So, yeah, it's been, it's been a
- 4:55really, really interesting journey.
- 4:57And yeah, so now managing 110 units and the sort of growth has
- 5:01been sort of accelerating year on year with sort of the first
- 5:07team member, proper team joining in January 23.
- 5:09And that's when we've been really starting to kick on.
- 5:12So yeah, we're excited for the future.
- 5:14So talk to us about your USPS then why do you stand out among
- 5:18the competition in the cost world?
- 5:20Yeah. So I think there's not a lot
- 5:23that do end to end full service management.
- 5:26Some of the bigger national players will and then there are
- 5:28lots of sort of smaller players that will as well.
- 5:30But there's no one really operating in that sort of middle
- 5:34ground of probably 100 to 500 homes.
- 5:37And that is, you know, a few reasons why, but I think we're
- 5:43we're really just sort of adding value is that end to end
- 5:46management and, and particularly around housekeeping.
- 5:49I think a lot of people don't take housekeeping as seriously
- 5:53or they don't don't really design the company from the
- 5:58ground up to actually like add value and really control the end
- 6:04end cleaning, please. Like a lot of companies will
- 6:06lean on on on cleaning companies and they'll outsource it where
- 6:10it's a revolving door of sending a different cleaner each time.
- 6:13And that adds up to to loads of different issues.
- 6:16You know that that tea stain that was on the carpet there
- 6:18last week, They're not going to pick up.
- 6:20And those are the things that over time can just really add to
- 6:23add to poor owner experience. Poor guest experience to home
- 6:25gets quite tatty. And so for us, we really pride
- 6:29ourselves in taking housekeeping in in house.
- 6:32So the way that we work is we go to the effort to recruit, train
- 6:36and on board a specific housekeeper for each home.
- 6:39So they assign them to that home.
- 6:40So they're there at every changeover.
- 6:42They get to know the home. They have total pride.
- 6:44It's their it's their it's their income.
- 6:47They look after it extremely well and they sort of it's, it's
- 6:50really about property care and property maintenance.
- 6:52And I think that's, but that that level above holiday, like
- 6:55cleaning really isn't just about cleaning.
- 6:57It's really about the extra details that go into the great
- 7:00stay noticing, for example, you know, this, this cupboard used
- 7:04to have 12 hangers in there, but now there's only one left.
- 7:08So when the guest checks in, you know, notion those little
- 7:10details that I think cleaning companies wouldn't.
- 7:15And so that's where we're really adding value.
- 7:17And the owners really like that as well because they often meet
- 7:19the housekeeper, they end up building a relationship with
- 7:22them as well. So they can hand over quite sort
- 7:23of unique points and it's really coming from that, that, that
- 7:28care and understanding that the home needs to be really well and
- 7:31monitored and, and, and looked after.
- 7:33So I'd say cleaning, housekeeping, how we manage
- 7:36housekeeping is, is, is a big one.
- 7:39And then the flexibility piece is also a big one.
- 7:41So every owner that on boards for us, you know, we give them a
- 7:45drop down of options of how they want their home managed,
- 7:47particularly around like maintenance.
- 7:48So if they want us to handle everything, don't call them
- 7:51unless it's a fire, but there's a, there's a certain, certain
- 7:54threshold of spending that they're happy for us to crack on
- 7:58with or whether they want to be informed or everything that
- 8:00comes their way. So it's really about partnering
- 8:03with them, I think, and, and, and adding that flexibility to
- 8:07their service, you know, within, within reason to ensure that,
- 8:11that we're partnering with them and that the home is being
- 8:12looked after as, as they wish. Because we know that every owner
- 8:16is different, every home is different.
- 8:17So it's important to the designs of our management service which
- 8:21can, which can deliver on that. So in the Cotswolds then, what
- 8:25are the main challenges and opportunities in your location?
- 8:30Yeah, I think the main, main challenges definitely come to to
- 8:33talent. It's quite a, it's quite a wide
- 8:36geography, but there isn't, you know, population density is
- 8:40isn't huge. And so, you know, good cleaners
- 8:44particularly are hard, hard to come by.
- 8:47And so we sort of scour the earth quite, quite carefully
- 8:50trying to find them and, and pay them really well.
- 8:52As a result, they're paying between 20, you know, coming up
- 8:54to £25 an hour now to find, find the best one.
- 8:58And then we've done the maths and it works out downstream
- 9:02that, that, that it, it pays itself off very, very, very
- 9:04easily. So yeah, I find talent as well,
- 9:07not just on the sort of on the operation delivery side, but
- 9:10also I think in internally as a team.
- 9:12So we're, we're fully remote and that's enabled us to hire talent
- 9:17outside of the Cotswolds where where needed.
- 9:19So for example, we've got two and two in London, we've got one
- 9:25in Wales, but also you know 5 or 6 located in the Cotswolds
- 9:29itself. So it's enabled us to think, OK,
- 9:31is this role really required to be in the day-to-day in the
- 9:34thick of it? Or can they sit back and be much
- 9:36more kind of like operationally strategic in terms of our
- 9:38processes and the software that we're using and really be smart
- 9:41about how operating. But you know, of course, we, we
- 9:44get together every two or three weeks for a long lunch and we
- 9:47don't, don't do that much work to be honest.
- 9:48When we meet up. It's just about getting together
- 9:50and, and, and, and hanging out. But so, yeah, I think it comes
- 9:54down, comes down to talent definitely as, as, as the
- 9:56challenge here locally. And then in terms of
- 10:00opportunities, yeah, I think there's a huge market to to
- 10:04uncover here. I think we're only really
- 10:06scratching the surface. We want to get 500 homes by by
- 10:1120-30. We definitely think that's
- 10:12possible. I think the biggest opportunity
- 10:15is, is convincing owners that are doing it themselves to
- 10:18partner with a company like us. We're really focused on the
- 10:21details and have that personal approach and we're confident
- 10:24that we can do that, you know, relatively at, at scale in the
- 10:28systems that we're using. But having that, that, that,
- 10:31that local person on the ground with, with paired with the
- 10:33dedicated housekeeper, we think we can get that.
- 10:35So the, the challenge is really to how can we communicate that
- 10:39to, to owners and convince them to go over the service like ours
- 10:42so that they don't lose that, that personal and approach to,
- 10:46to guests, which often they like.
- 10:48So and we've had some really good success with that so far.
- 10:50So we're excited to to to go after them, but also to go head
- 10:54to head with some of the competition where everything we
- 10:56can move, move a bit further on as well.
- 11:00Really interested in your approach to cleaning because I
- 11:02think it makes a lot of sense to to the house and property
- 11:05managers out there who just think I'm just going to employ
- 11:09the cheapest option. What are the perils of doing
- 11:12that? I mean, so many.
- 11:16So yeah, first of all, preparation of the home, if it's
- 11:21not done to, you know, five star standards throughout 100% of the
- 11:25property, the guests are going to pick up on that.
- 11:27So first of all, unlikely to get a five star rating, they might
- 11:31ask probably ask for a refund on that.
- 11:34So the sort of already you're, you're at back foot in terms of,
- 11:38you know, financials, right, If you're paying some £12 an hour
- 11:40that you're getting 20 lbs refund, you know, may as well be
- 11:43paying a housekeeper 20 lbs an hour.
- 11:46But also, yeah, in terms of ranking on Atas, if you're if
- 11:50you're reliant on those, if you're being marked down on
- 11:52cleaning schools, you know, the downstream effects of that are
- 11:56of being booked versus someone else who's got very high
- 11:58cleaning schools obviously are obvious.
- 12:01But I think just in terms of the property care perspective as
- 12:03well, not picking up on damage, not looking after the home, you
- 12:09know, proper bin management. Yeah, like I mentioned, if
- 12:13there's like chocolate or wine stains on sofas, the next guest,
- 12:17you know, the cleaner comes in, just cleans over it, doesn't
- 12:19raise it and then holds the previous guest accountable and
- 12:22deduct it from their security deposit or air cover.
- 12:24If it's via AB and B, it's really about being really on top
- 12:29of the home and, and not not just cleaning because, yeah, if
- 12:33you need to, you get the sofa covers and dry clean, that's an
- 12:36extra cost, right? Whereas if you have that
- 12:39previous guest accountable or whether you need to replace an
- 12:41item over time, these costs are going to add up.
- 12:44So you really need to be on like a hawk at every changeover.
- 12:48And if you hire a really fantastic housekeeper who takes
- 12:52pride in their work and is really focused and is a good
- 12:55match for that home. And the, the number of issues
- 12:59that it solves down the line is, is, is phenomenal.
- 13:03And I've seen on, on both sides, right?
- 13:05Like at houses, very much a marketplace model where you'd
- 13:09match a housekeeper with a, with a booking based on, you know,
- 13:13cleaning rating or location. It was in London.
- 13:15So it's, it's a different market.
- 13:17And then also on the cleaning company side.
- 13:19And I think for us in the market that we're, we're in our, our
- 13:23model makes sense and we're seeing some really, really good
- 13:25results there. Great cleaners are worth their
- 13:28weight in gold, no doubt about that.
- 13:32Guest experience Then what are your top tips for delivering an
- 13:36outstanding guest experience? Yeah.
- 13:38I mean, you know, I think when you're in the in the thicket of
- 13:42the industry, it's so easy to over complicate the stuff.
- 13:46Really it just comes down to getting the basics right in in,
- 13:49in my view and really becoming laser focused on that.
- 13:51But as you grow, things get more complicated and with your
- 13:54systems and how you deliver that.
- 13:56So like it's easy to get lost in the sort of web of reviews and
- 14:00feedback and everything. But I think for me, what it
- 14:02comes down to, first of all, it's been setting expectations
- 14:06on the listing. You know, what are they booking?
- 14:08Have you take the right amenities?
- 14:09If you have take the wrong amenity by mistake, you can get
- 14:13found it very quickly and a refund's going to be owed.
- 14:17Is your photography, you know, is it selling it too much?
- 14:19Have you got really wide angle lens on there?
- 14:22Is a photography realistic? Is your description realistic?
- 14:26If it's a 15 minute walk into town, say it's 15 minutes, not
- 14:29an eighth and 10 minutes stroll. Just be really realistic with
- 14:33the property. I think, you know, you'd
- 14:35probably want to sort of undersell it slightly so that
- 14:39guests are really pleased when they walk through the door.
- 14:43So, yeah, I think it comes down to setting expectations in terms
- 14:47of the property that they're booking.
- 14:49Secondly, I'd say responsiveness.
- 14:52You need to be responding to, to to messages, you know, I'd say
- 14:54within within 30 minutes, ideally 20 minutes.
- 14:57So that guests, I've got that customer service, they've got
- 14:59that, I've got that responsiveness.
- 15:01So there any questions like can we, do we need to bring towels,
- 15:03can we check in early? Any of those sorts of things are
- 15:05dealt with really quickly. And then the final piece comes
- 15:09down to, I think what makes a great stay and not cutting
- 15:14corners. You know, things like leaving
- 15:16out salt, pepper, loads of spices.
- 15:17You know, we go to the extent of leaving olive oil and balsamic
- 15:20vinegar and extra bits and pieces, ensuring that there's
- 15:23plenty of tea towels, you know, bath mats and just making sure
- 15:26that home is really well configured so that when they
- 15:29walk through the door, they have enough of the basics to get
- 15:33going. Of course, the self catering
- 15:35puppy, you've got the benefit of cooking from home.
- 15:37So buying things like olive oil and gold salmon mini gives a bit
- 15:39of a bit of a pain if you're not going to take it home with your
- 15:41rights. So having that already in the
- 15:43home is is nice and obviously hair dryer and ironing boards
- 15:47exception all those pieces. So I think it's about not
- 15:49scrimping on the basics that don't cost very much and
- 15:53ensuring that the homes can, guests can just walk through and
- 15:56start enjoying the home and relaxing and and having that
- 15:58well, well love to have time off.
- 16:00And what are your top tips for keeping owners happy?
- 16:06Yeah, I think for, for us, we've had, we've had quite a good
- 16:10ride. Our NPS is really high for us.
- 16:14We have very candid conversations with our owners.
- 16:17So in terms of projections and a lot of them want to know what
- 16:20they're going to be earning when they're coming on board.
- 16:22We're very realistic with our projections, that hard way of
- 16:26being too overzealous and ultimately not being able to
- 16:28meet those. So taking decisions.
- 16:30I think similarly, like with listen, descriptions and so on,
- 16:33it's about setting expectations about what's realistic and so
- 16:38that they're often pleasantly surprised when they're getting
- 16:40their earnings through being a great team to work with.
- 16:44I'd say, you know, we're all very personable, I'd say
- 16:48trusting a nice bunch of people. But I think, you know, in this
- 16:51industry, you have to be, you know, you weather a lot, you
- 16:53have to be positive, upbeat. And that goes a long way for
- 16:57earners. You know, they're really,
- 16:58they're trusting you with their homes.
- 16:59They want to have that relationship.
- 17:01So yeah, we assign a dedicated account manager to them so that
- 17:05they have that point of contact. And the third piece I'd say is
- 17:09simplicity. There are so many moving pieces
- 17:12and holiday let's and owners look to management agency to
- 17:16hand over a lot of that. So we have to really earn our
- 17:19keep there. And so we've worked really,
- 17:21really hard to simplify things as much as possible.
- 17:24So that's things like through through onboarding, you know,
- 17:26what can we take off their shoulders?
- 17:28So we do a lot of maintenance before the home gets up and
- 17:31running up to our standards. We've got a long requirements
- 17:34list. You know, we're happy to go and
- 17:35order all of the items to sort of take that weight off the
- 17:38earners. You don't take a margin there.
- 17:39So it's really about staging the home and getting it well set up.
- 17:42So in our interests as well, but it's all about kind of working
- 17:45in, in partnership and you know, many other things specifically
- 17:50around billing. We manage all of the payments,
- 17:53we pay them out once a month, one easy account statement with
- 17:55their debits and their credits. So it's just nice and
- 17:58straightforward trying to treat it similarly like a long let and
- 18:01just trying to remove that friction without them really
- 18:05knowing that we're managing, you know, 10 or 12 changeovers a
- 18:08month and everything else that's going on in between that sort of
- 18:11really earning our management fee and trying to take that
- 18:14workload off their plate and, and, and, and, and pay them out
- 18:18once a month. And what's been your biggest
- 18:21lesson learned since you started the business?
- 18:25I mean, I think starting a business has been a much tougher
- 18:30hill to climb than I thought initially.
- 18:34I'd worked closely with with founders and previous
- 18:37businesses. So it kind of gave me the
- 18:38confidence to start my own thing.
- 18:40But I think it's, it's, it's, it's a different chapter in
- 18:46every phase of growth. And whether that's your first
- 18:48hire, your third hire, your 7th hire, or, you know, the number
- 18:52of clients that you bring on every, every phase has slightly
- 18:55different challenges which, which, which, which which it
- 18:58brings. So I think you have to be like
- 19:00super adaptable and I think not necessarily just property
- 19:03management, but yeah, having to be a chameleon and wear like 18
- 19:08different hats and every day and just look at everything with
- 19:12with intense focus and you're having to work incredibly hard,
- 19:15but also smart when the opportunity arises.
- 19:17So I think for me, like the, the number one thing that I've
- 19:22learned is, is, is resilience. Like you have to be absolutely
- 19:26committed and really believe in what you're building with utmost
- 19:29conviction. And that will get you through
- 19:31some really long days, some really long weeks.
- 19:33But yeah, we thankfully a lot of that is behind me now with with
- 19:38a great team in place slightly on the other end, but we're
- 19:41ready to get cracking with Phase 2 now and.
- 19:44What do you love most about hosting?
- 19:48It's got to be, it's got to be the reviews.
- 19:50You know, when you get a review of a guest saying we've stayed,
- 19:54we've travelled the world over, we've stayed in, you know, over
- 19:5750 airplanes or other places and this has been by far the best
- 20:01place we've stayed in. You know, the service, the
- 20:03responsiveness, the detail as it's been second to none.
- 20:06You know, that's, that's really what, what keeps you going and
- 20:08what we're really striving for. So I've got to say that it's got
- 20:11to be a guest. Guest feedback, when it's like
- 20:15overwhelmingly positive, helps. When it's in the beautiful
- 20:18Cotswolds, of course, that makes the Five Star review.
- 20:22Yeah, we've had some great weather recently as well, so
- 20:24that helps. All right then, Freddie, we've
- 20:27got a few more quick fire questions to run through.
- 20:30So which PMS do you use? We use host away, but we have
- 20:36quite a lot of bolt ONS through their API that we that we run,
- 20:40yeah. Which dynamic pricing tool do
- 20:43you use? Price labs good.
- 20:45Shout out for Price labs. Which piece of tech couldn't you
- 20:48live without? It would be retail, which is our
- 20:53yeah, front end for, for our database, Yeah, probably used to
- 20:56be breezeway, but increasingly we're we're building much more
- 20:59on retail. Excellent.
- 21:02OK. Then ideally pets, yes or no?
- 21:05Definitely pets. Yeah, hot tubs, yes or no?
- 21:09Definitely not. Can't stand hot tubs?
- 21:11Definitely not. Ideally self check in or a
- 21:15personal welcome. Definitely self check in.
- 21:18And telephone call or AI response?
- 21:21Definitely telephone call. And your most memorable hosting
- 21:25moment? I mean there are, there are so
- 21:28many positive and negative. We've got one which is probably
- 21:32very Cotswolds focused. We had a guest call our
- 21:37emergency line at about 10:00 one night on a cold February
- 21:41evening. He was totally panicked and
- 21:45freaked out because there was a horse bolting around the lanes
- 21:49and didn't quite know what to do with it.
- 21:51And yeah, we had a new starter. He literally joined the week
- 21:55before. You know, it was really right in
- 21:57the back to the survive. You know, there's no playbook of
- 22:00what what to do when you've got a horse running around.
- 22:02It's the first time we've handled it as well, so we had to
- 22:05call around neighboring farms and ask if anyone had lost a
- 22:08horse and finally have to track them down and get them reunited.
- 22:11So yeah, that was quite memorable.
- 22:13I mean, there's so many. Maybe we've had cleaners
- 22:18rescuing cats, we've had weddings, we've had proposals,
- 22:23you know, you name it, we've seen it.
- 22:25It sounds like with with the horses and cats, that sounds
- 22:27like you're doing the fire break as well.
- 22:32Shout out time then. Is there an individual in the
- 22:35short term rental industry who's perhaps helped you on the way
- 22:38that you'd like to give a shout out to?
- 22:41I'd probably say James Jenkins Jates.
- 22:43He's the founder of of of house. It's definitely battles and fire
- 22:48for me into into this world. And yeah, his sort of a strategy
- 22:53around being very tech focused gave me a different lens into
- 22:56the sort of work of, of, of working world.
- 23:00So yeah, definitely, definitely him.
- 23:01I've got him to to thank for a lot of this is where I've built
- 23:04my experience and I know how to to start the business and crack
- 23:07on the next stage of my career. Fantastic.
- 23:10Final question then. Ultimate goal for your business.
- 23:14Yeah. So we feel like we're really
- 23:15just scratching the surface. We want to get to 500 homes
- 23:19before 20-30. We'll probably do some regional
- 23:22expansion in the process. But yeah, we want to be best in
- 23:25class, in, in, in, in what we do.
- 23:28And we're really excited to to hopefully, hopefully get there.
- 23:31Superb Freddie, it's been a real pleasure.
- 23:34Thank you for being part of the House Planet Playbook.
- 23:37Cheers, James. Thanks very much.
- 23:38Catch you soon. All right, that's it for today's
- 23:40episode. My thanks to Freddie for sharing
- 23:42his journey and for being part of the House Planet playbook.
- 23:46Remember, this series is brought to you in partnership with
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- 24:17Head to hospitable.com/houseplanet to
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- 24:26vacation rental house, head to Houseplanet dot Club where you
- 24:29can sign up for our newsletter, listen to our podcasts and
- 24:32download our suite of ebooks. Until next time, happy hosting.