Latest / Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights / Agency vs Self-Managing Your Holiday Let – What’s Best?

Transcript

Agency vs Self-Managing Your Holiday Let – What’s Best? · Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights

0:00
Welcome to Holiday Let Insider, the podcast that takes you
0:03
behind the scenes of the holiday letting industry.
0:06
Brought to you by Host Planet and Sykes Holiday Cottages.
0:09
This show is packed with expert insights, real world strategies,
0:13
and actionable advice to help you succeed as a holiday let
0:16
host. I'm James Farley, the founder of
0:18
Host Planet, and in each episode we'll dive into key topics like
0:22
property management, guest experience and revenue growth,
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and we'll be joined by industry experts who know what it takes
0:29
to thrive in this sector. In today's episode, Rachel
0:32
Brennan will be outlining why holiday let owners should work
0:36
with an agency instead of going it alone.
0:39
Are you looking to take the hassle out of holiday letting
0:42
while setting yourself up for success?
0:44
With Sykes Holiday Cottages, you benefit from working with a team
0:48
of real people with fast experience and knowledge, or
0:51
providing a unique service to support you every step of the
0:55
way. Eleven time consecutive winners
0:58
of the Best Large Company for UK holiday home rentals at the
1:01
British Travel Awards. Sykes uses industry leading
1:05
pricing systems, dedicated account management and a network
1:08
of more than 700 booking partners to help get the most
1:12
out of your investment. Sykes aims to combine trusted
1:15
experience with local expertise to help make your holiday let a
1:19
success. Get in touch today to find out
1:21
more. Head to
1:22
sykescottages.co.uk/letyour Cottage for further details.
1:33
Hello and welcome to the fourth episode of Holiday Let Insider.
1:36
Today's special guest is Rachel Brennan, the senior manager of
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property onboarding at Sykes Holiday Cottages.
1:43
How's it going, Rachel? Hi, really well, thank you.
1:46
Excellent. OK then straight into it.
1:48
Why should a holiday let owner consider working with an agency
1:53
rather than going it alone? So firstly, it's the marketing
1:57
power that comes with the agency.
2:00
So if you think that that agencies already got the
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platforms, already got the systems, already got the
2:05
audience there. So when you are ready to list,
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you know, you can then get bookings quickly, you know, and
2:11
you can get seen fast. So especially when you've just
2:14
recently renovated or bought, you know, the property and
2:17
you've spent a fortune, you know that that generation of cash
2:21
flow as fast as possible can be something that's really
2:24
important to owners. The other side of it as well is
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that it can save you a tonne of time.
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So if it's guest communications, they're cleaning, laundry,
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welcome packs, emergency contacts, maintenance.
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If you work in a full time job or you live too far away from
2:40
the property, or you simply just don't want your phone ringing at
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11:00 at night because the boiler is gone, then that could
2:47
be a huge win for you as well. The other sort of side to it too
2:51
is the legal side. Now this one I do think is a big
2:54
one. So with an agency, they can stay
2:57
up to date with any changes for local rules, regulations,
3:01
license and change and fire regulations, insurances.
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They can just make sure that you stay in the know and that you're
3:06
compliant at all times. If you go solo, you can run the
3:10
risk of either misinterpreting some of those changes, missing
3:13
those changes, which could be really costly, you know, in the
3:16
long run, if there was fines or anything like that incurred.
3:19
And the other sort of side of it is financially, I think a bit of
3:22
a myth when it comes to it is that going alone will save you
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money. And I've got sort of two reasons
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of why, you know, I think that that that isn't isn't always
3:32
correct. The first one being is that you
3:35
need multiple platforms to ensure that you're getting the
3:37
right audience for you. All of these platforms have got
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specialisms, they've got an area of expertise.
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So whether it isn't the last break market, whether it is in a
3:46
short break market, long stays, parties, you've got to make sure
3:51
that you're on all the right sites.
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So when you go with an agency, you're normally not just going
3:55
on that one listing, you know on that one website, you're going
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on to several others. I know it's someone like
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ourselves. We've got over 700 partner
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websites that we can utilize. So it's just making sure that
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you're getting getting, you know, seen on every single one.
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If you go it alone to put yourself on all of those, again
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could be really costly to uncare that way usually, usually it's
4:15
all covered within the marketing costs and the one Commission
4:18
that you pay for that booking. Secondly, normally an agency's
4:21
got quite clever sort of pricing tools that they use.
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So that keeps your pricing up to date with any changes in the
4:28
market, any shifts in demand that'll make sure that you are
4:31
getting the best possible price at any time.
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And lastly, it would be on guest experience.
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So when you go with an agency, they've usually got the slick
4:40
professional processes already in place.
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That means that your guests will have a fantastic stay.
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And a lot of people think that, you know, the holiday starts,
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you know, the moment that they walk through the door of the
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property. It doesn't, it start at the time
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of searching, it starts at the time of booking.
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So that experience of finding that holiday, how easy it was,
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how easy it was to confirm the booking, take payment, that all
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adds to that customer's experience.
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So if that experience is a good one, that will lead to fantastic
5:08
bookings and then hopefully lead to some repeat buckets for you.
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So really when you look at it of the saving in time, energy
5:16
efforts and, you know, reducing the risk as much as possible,
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that is, you know, some of the main reasons as to why going
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with an agency might be a more suitable option than just just
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going it alone. I must admit that is a very
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convincing argument. I've I've I was almost signing
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up mid mid answer. So what kind of support does an
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agency like Sykes provide to owners on a day by day basis?
5:44
Yeah. So the, the, the marketing and
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booking is certainly 1. So as I've just alluded to
5:48
there, you're not just going on to 1 website, you are going on
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to lots of others and that includes some of the big names
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out there as well. So like Airbnb, booking.com,
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Verbo, Expedia. So you'll go on to all of the
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websites that are right for your property and then they'll be
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used to boost sort of bookings and audiences where where you
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need to. So Sykes would then be the ones
6:10
that would manage all the availabilities, all the syncing
6:12
of calendars, all the customer sort of communications take all
6:16
of the payments, confirming all the bookings for you.
6:18
So that can be a real benefit if you don't want to be SAT just
6:23
with your phone and juggling bookings constantly.
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So that's that's a big one on a daily basis.
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And then other ones to that is the guest communication.
6:30
So whether it is pre post or during the holiday.
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And we even offer things like an emergency contact line for both
6:37
owners and customers. So if there is any in holiday
6:40
queries that they have and then there's a 24 hours, seven days a
6:43
week hotline that they can can use.
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We can support the practical things too.
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So very much can build a package to suit and owners knees so they
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can be as hands on or as hands off as they want.
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But if they do live, you know, quite far away from the property
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and they're thinking logistically, how am I going to
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manage this? We can either offer in house
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provisions within our local offices, which we've got dotted
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all around the the UK, or we can put you in contact with a
7:12
network of preferred suppliers. And so that's all the cleaning,
7:15
laundering, maintenance side of things.
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And then we've also got lots and lots of contact details for
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contractors trade. So you can always get some great
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discounts and exclusive discounts for owners on there
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too. So whether it is a discount on a
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hot club disorder, a log burner or a Wicker basket for your for
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your welcome packs or 10% off in B&Q, there's always some great,
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great perks to to to be in with a company like ourselves too.
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A big bonus is the owner portal and our owner app because it
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just means that you have everything at your fingertips.
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So if you want them to see or check in on how your bookings
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are going, check in on reviews and see any of your payments
7:55
that could be due. Everything is there, but
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probably the, the biggest one that I would say from a
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day-to-day basis is that every owner gets a dedicated account
8:06
manager when they join Sykes. So you will have a dedicated
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person who is there and they're part of our, it's called our
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owner success team. They are there to make you
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successful. They are there to make sure that
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you're you're getting as many bookings as you possibly can,
8:20
that the pricing is right that that the quality is right there
8:24
as well. So they're there to go through
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reviews with you. So if there is any tweaks or
8:27
changes that's needed, you're almost in a partnership rather
8:31
than just a business or or platform that you're using.
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You're working together to a shared goal.
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I mean, it can be completely hands off, you know, like you
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were saying there if somebody lives abroad, like what you
8:45
know, I did when when I bought my first holiday let.
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If you're working with Sykes and you want a totally hands off
8:51
experience, would you just hear from Sykes kind of, I don't
8:54
know, monthly to say here's the revenue or something like that?
8:57
Yeah, exactly. So you know, dependent on, as I
9:00
said, your your own individual needs, you can build that
9:03
package to suit your needs. So if you want to be hands on,
9:06
then you certainly can be and you can get involved with
9:09
welcoming the guests there. You can get involved with the
9:12
beautiful welcome packs that you leave, even guest
9:14
communications. So that app that I've just
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talked about, that's great because you can schedule a
9:18
welcome e-mail, you can schedule, you know, sort of
9:21
something when they leave or you can respond to reviews.
9:24
But then for owners that really just want to go, if they're the
9:27
keys, they can have it that the only time they hear from us is
9:30
when they receive their statement and then their payment
9:32
every month. So we can, as I said, build a
9:35
package to to suit the needs of that individual owner.
9:39
We've touched on this a bit, but how involved is Sykes when it
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comes to things like guest communication, cleaning,
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maintenance and importantly as well, pricing decisions?
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When Sykes takeover, do you decide what the nightly rate
9:53
should be or is an owner saying I'm only willing to let my
9:57
property for X amount? Yeah.
9:59
So ultimately it's the owner's property.
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So the the owner has to say at the centre of it, the owner has
10:06
to stay in control. They are very much in the
10:08
driving seat here and we are simply there to guide, support
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and just offer all of the sort of do's and don'ts and the
10:15
things that we've learned along the way.
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So with all of that, we are heavily involved.
10:20
We are in in most cases the main contact for the holiday maker.
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But as I said, an owner can get involved as much as they wish.
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So to some people, the even the thought of pricing is really
10:33
scary and overwhelming that they just don't know where to start.
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And so they need us to be able to come in to use the sort of
10:41
the, the, all of the analytics that we have, all of the sort of
10:44
competitor rates that we have knowing, you know, the market as
10:47
well as we do. They need us to be able to help
10:50
with that start and block price and of where they should enter
10:52
the market at compared to others that may have been doing it for
10:55
a while, you know, are experienced that know exactly
10:58
what works for their property already.
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They can come, come in with that already decided.
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So if you're that case, then you know, we we welcome that.
11:05
Of course, we would still share, you know, our recommendations
11:08
and guidance if that differs from your own.
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But the owners, at the heart of it, the owner is very much as I
11:12
said, they they're the driver in all of this.
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Talk us through the onboarding process.
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If somebody gets in touch and says right here's my property, I
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want to work with you, what happens next?
11:24
Yeah. So it starts with a phone call,
11:27
an e-mail or even just a completed, you know inquiry form
11:30
online. And what will happen is then you
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get a call from from one of my team there.
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So they will call just initially to gather some property
11:37
information, gather some information about yourself.
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At that point, we'll be sort of determining how ready you are
11:44
and how quickly you want to go. What pace do you want to go?
11:47
So some of our owners will come on and say, get me alive today.
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You know, I've done everything. I want to start earning money,
11:54
you know, open, you know, open the doors, let the toes ring and
11:57
we can work with you, you know, to a, to a pace that really
12:00
suits your needs so we can then start to build your listing.
12:03
So someone who's might come on with, as you said, the pricing
12:06
in mind, you might come on with photos that they already have
12:09
and a description they're already really proud of and
12:11
happy with. We can just take all of that and
12:14
then build your list in and then get you like the same day.
12:16
But for other owners, they, they are the majority of them, they
12:20
need to go in a much slower pace.
12:22
They need more nurturing, more guidance, they need to be
12:26
handheld. So for those owners, we would
12:29
recommend booking in, it's a completely free of charge, no
12:32
obligation site visit with a local property consultant.
12:35
They're there to meet you at the property, go through the
12:39
property with you. So that could be any sort of
12:41
advice on on the final sort of furniture that could be needed
12:45
on the setup of the property that could help you with things
12:48
like compliance for health and safety and regulations and all
12:51
of those. They can go through any
12:53
questions or queries that you've got or any concerns that you
12:56
have. And then once you're ready, you
12:59
can sign an agreement with us to then to then list all the
13:03
professional photography is done through ourselves.
13:06
As I said, the owner had something that they were
13:08
already, you know, proud of. But all the professional
13:10
photography is done. All the expert written
13:12
description is done for us that we will continue to optimize as
13:15
you're live as well. So it's it's go at your own
13:19
pace, but that's that's what it looks like when you come
13:22
through. If somebody switches from
13:25
running their own rental to then working with Sykes, what tends
13:31
to be the difference in visibility, first of all and
13:35
booking rates? Do you notice a big improvement
13:39
when somebody's been doing it themselves?
13:41
When when they come over to work with you?
13:43
Yeah, firstly, so, so it's the reach, you know, predominantly.
13:46
So if you think about we're a national brand, you know, that
13:50
has got, you know, heavily invested in lots of, you know,
13:52
including social media, SEO and all of this targeted
13:56
advertisements, especially when it comes to our customer
13:58
database, it's huge. So we've got loyalty schemes,
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you know, we've got a rebook rate of 55%.
14:03
So we're constantly going out with individual and targeted
14:06
information to get them to come back to US time and time again.
14:09
And so, you know, when a new property comes on those rebook
14:13
because you know, they like to know what's new to market, which
14:15
is, which is huge. As I said, it's not just the one
14:20
website that you're going on and it is almost the the
14:23
manipulation that you can use of those availabilities as well.
14:26
So if I just compare, for example, ourselves to something
14:29
like Airbnb and booking.com, they work well with that lower,
14:33
you know, sort of lower lead time to booking.
14:36
So they do really well in that short break last minute market.
14:40
So we're not necessarily going to open up that full
14:42
availability yield years and years in advance, whereas we
14:45
know someone like ourselves can be king when it comes to the
14:48
week and comes to those sort of holiday makers that are booking
14:51
with a much longer sort of lead time with that.
14:54
So it's also not only putting you on those platforms, but
14:58
knowing how to market you on that platforms, know when to
15:01
turn and on and push hard and know when to turn off and
15:04
potentially go to somewhere else.
15:06
So when you compare as well as somebody doing alone or even
15:09
with a local, you know, sort of agency, they can struggle
15:13
because you're then in a market which is much more saturated to
15:17
that local area. And we know that a lot of
15:20
holiday makers start with like general enquiries when they
15:22
first enquire with us. So they could come on with
15:26
knowing that they want to go to, you know, the countryside.
15:29
We've got the ability to actually cross sell from those
15:32
huge markets into those areas because if you are doing it on
15:35
your own or you're with a local agency, they're all just in that
15:38
localised audience that you're trying to compete for with lots
15:41
of others in that region. So that can be something that
15:45
that can be a huge advantage to. And then the other bits that I'd
15:48
sort of touch on is the trust element that comes to it, you
15:52
know, from an agency that, you know, that has this huge
15:56
visibility and, and, and, and, and really a household name.
16:01
That trust starts to come through that customers want to
16:04
book with a, with a, with a company, a trust that they know
16:07
that's been going around for years and years, that they're
16:09
comfortable with their, their booking policies and processes
16:12
that they feel secure when they book.
16:14
So that can also lead to guest confidence, which again can just
16:17
increase on bookings. Talk to us about your approach
16:22
to revenue management and there'll be a lot of people out
16:25
there, hosts and owners who are perhaps using dynamic pricing.
16:30
Is that something that Sykes uses?
16:32
And also in terms of your revenue strategy, do you often
16:38
have to have conversations with owners and say, look, we need to
16:41
tweak your rates a little bit, We need to maybe bring them down
16:44
a little bit to to get more demand?
16:47
Yes, so you mentioned nightly rates before.
16:49
So our pricing sort of strategy really starts from that starting
16:53
block price and the price that you're entering the market at.
16:55
So you, you as I said, you mentioned nightly, which we work
16:59
with something that's weekly. So when it comes to short
17:01
breaks, they are the proportion of percentage of the weekly
17:04
rental that we deem fit within the demand that's out there.
17:08
So for example, if somebody was going for a short break starting
17:12
on a Friday, they may be paying, you know, much closer to the
17:15
weekly rental than for example, somebody who is starting
17:18
midweek, you know, on a sort of Monday, Tuesday and they could
17:21
be paying the lower percentage for that.
17:24
So when it comes to dynamic pricing, we we use the term
17:27
revenue and management. So it's income maximization that
17:31
we're using for and that does give us the ability to increase
17:34
prices, you know, to a limited amount where we we deem the deem
17:38
fit, where we deem the demand, but also reduced to an agreed
17:42
amount. So where you mentioned that is
17:44
the lots of conversations happening.
17:47
We've already sort of set those guidelines and guidance with
17:50
owners at the time of onboarding.
17:52
And sometimes their preferences do change, you know, throughout
17:55
their their course with us. And some people can come on
17:58
with, with with sort of set rates of being fixed, which we
18:01
know in this, in this sort of dynamic just doesn't work.
18:04
You know, we know that those those price changes, you know,
18:06
are really important to help with those occupancy and booking
18:09
levels. Other owners can choose to only
18:12
increase their prices only and then others can choose an
18:16
unlimited reduction to sort of 10% or potentially even 20% of
18:20
that. And then based on our modifying
18:23
is based on where we see the demand going.
18:25
And then we will start to change, change those prices
18:28
accordingly. So you know, it wasn't that long
18:30
ago that we just had a couple of extra bank holidays, you know,
18:33
introduced. So what happens, they flock to
18:36
the website or the fantastic weather that we've been
18:39
experiencing. The change in customer behaviour
18:41
is huge and we're able to deal with that in, in real time.
18:45
So when I look at how many price changes we, we do there, there
18:48
are 1,000,000 each year. And when we break that down per
18:51
property, it's around 1000 price changes per property per year.
18:55
So it's, it's a huge job. It's we've certainly got the
18:59
systems and tools to do that. But we've got a fantastic team
19:02
actually eyeball all of those changes too.
19:05
So there's a human element to it that can just make sure that, as
19:09
I said, you're getting the best price at any time of booking.
19:13
Yeah, you don't want to be leaving money on the table.
19:16
We've touched on this a little bit as well, but just talk to us
19:19
about the advantage of working with a nationally recognized
19:23
brand like Sykes in terms of the guest confidence, trust and of
19:29
course getting those all important repeat bookings.
19:32
So trust and credibility is huge.
19:34
You know, we, we, we said that earlier to go with a brand that
19:38
is well known, that has been around for years and years.
19:41
It's become a bit of a household name is huge.
19:44
And reputation is everything. The best type of marketing is
19:46
word of mouth, right? So to, to have those reviews is,
19:51
is, is so important. And to be with a company that is
19:54
centred around customer service, you know, is is huge.
19:58
And as part of a lot of the sort of initial inquiries that you
20:00
get, you are going to speak to some of the the best sort of
20:03
salespeople out there that are going to tell you, you know, why
20:07
their companies potentially the the the best out there.
20:10
And we really do let. Our reviews, our awards, our our
20:15
successors, you know, speak for us instead of of just the
20:19
salespeople. So when I think to the British
20:22
Travel Awards, you know, Sykes has been voted for the best
20:25
large self catering holiday letting agency out there for 11
20:29
years in a row. And that is voted for by
20:32
customers and by owners alike. So we've got to be doing
20:35
something right. We've just been nominated.
20:37
So hopefully #12 is on his way towards the end of this year,
20:42
but equal when it comes to the awards that we've received in
20:45
finance. When you look at the awards that
20:47
we received in technology, also recently nationally recognised
20:52
for the leadership boards within our contact centre as well.
20:55
So it's all of these things where all of this trust is built
20:59
into. Another one is the B Corp as
21:00
well. I think that is a huge one that
21:02
sites has recognised B Corp company and that just means that
21:06
we are really pledging, you know, to be sustainable.
21:09
So when you partner with us or when you book with us, you're
21:12
not just going, going with a company that that is doing well,
21:15
they're also doing good. You know, they're doing good in
21:18
their local communities and wider communities.
21:20
They're, they're doing the right thing.
21:22
So I think trust, trust is huge. And as I said, that re book rate
21:26
of 55% is, is is evidence to that that is that is the making
21:31
of all of that. Super, very impressive,
21:34
especially with all the awards. What would you say to owners out
21:38
there Who are feeling a bit overwhelmed?
21:41
Perhaps they've been trying to run the rental themselves, or
21:44
perhaps they're with another agency and it's just not quite
21:48
working out. What do you say to them about
21:50
potentially switching to Sykes? Yeah.
21:53
So I think feeling overwhelmed is quite a normal feeling to to
21:58
have, especially when you've got no one to share those concerns
22:02
with. I think that's, that's huge to
22:04
know that you've got a support network is, is, is big.
22:07
The one thing I'd say is to not let that phase you to get out of
22:11
the game completely because this really is a lucrative market,
22:15
but it's a market that does fantastically things, you know,
22:18
for holiday makers, you are helping them make memories, you
22:21
are helping them break away from sort of the stresses of everyday
22:24
life. You know, don't just break away
22:26
from that, from one or two sort of bad experiences and don't
22:29
brush, you know, almost the same agency or, or the industry, you
22:33
know, almost with the same brush.
22:34
You know, it's trying something new.
22:36
It's looking out there that there's an agency, one that can
22:39
ensure that they are getting the right revenue for you and that
22:42
is starting off with a projection in terms of earnings
22:46
that is actually achievable. That is not over egged or you
22:49
know, price signs just to get you through the door that they
22:52
can actually go and deliver those booking levels that they
22:54
can deliver that income for you. Because it's got to be it's got
22:57
to be viable at the end of the day.
22:59
But also a company that you know is right for your morals, the
23:02
company that's got those customers at heart and the
23:05
company that you know that you know, if you need them, you can
23:08
pick up the phone call and if a customer needs them, that
23:10
they're equally there. So I just say, what have you got
23:13
to lose by doing an inquiry? As I said, that visit is
23:17
completely free of charge and with no obligation.
23:19
And that is the right type of owner to have one of those site
23:22
visits, the one that wants to go at their own pace, go a little
23:25
bit slower, ask all the right questions, just book it in.
23:29
It's a, it's an hour, maybe an hour and a half of your time.
23:32
And you can make an informed decision on whether you know
23:35
leaving the industry entirely is the right thing for you, or
23:38
whether switching might might be best.
23:41
And I know there's a sliding scale, but what should owners
23:45
expect to pay in terms of Commission to Sykes?
23:49
So it ranges depending on the level of flexibility that the
23:52
owners need. So for owners who are able to
23:56
commit a full calendar to us, So if they're using it purely for
23:59
for holiday letting only, it can range from 18 to 22% depending
24:05
on the the property plus the 18. Excellent.
24:09
OK. And where people can find out
24:11
more information if they're interested in working with
24:13
Sykes. So pick up the phone call.
24:16
So I know a lot of the contact details you know you will have
24:20
stored there, but 01244345700 and also you can e-mail us.
24:26
So that's a property expert at sykescottages.co.uk or simply
24:31
visit the website so www.sykescottages.com and go on
24:35
to the let your property side of things.
24:37
That's where you'll be able to complete the inquiry and then
24:40
we'll get one of the team to give you a call and book that
24:43
in. Excellent, and we will put all
24:45
those details in the show notes in case people want to get in
24:48
touch. Rachel, it's been a real
24:50
pleasure. Thank you for chatting to us on
24:52
the latest Holiday Let Insider. Thank you so much.
24:55
Bye now. Great to chat to Rachel Brennan
24:57
there from Sykes Holiday Cottages.
24:59
Remember, if you want extra exposure and repeat bookings
25:03
from a trusted brand, Sykes is a superb option.
25:07
Head to sykescottages.co.uk/letyour
25:10
Cottage to get in touch with their team.
25:13
All right, that's it for today's episode.
25:15
For more free education tips and trends from the STR industry,
25:19
visit Houseplanet dot Club, where you can sign up for our
25:22
newsletter, listen to our podcasts, and down unload a
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suite of ebooks for hosts and property managers.
25:28
That's it for today's edition of Holiday Let Insider.
25:31
Until next time, happy hosting.