You are considering changing management companies or have been managing the short-term rental of your property for (too) long and are thinking of handing this responsibility over to a management company. A wise decision: time and peace of mind are priceless! But how do you choose the best management company to meet your needs? To help you make the right decision, the Reserver.ca team invites you to ask 11 questions during your selection interviews.

What is your strategy for increasing my rental income?

This question will give you the key points of the management company’s recipe for making the most of your property.

As an example, Reserver.ca uses a dynamic pricing system based on data science that uses 7 factors to determine prices.

Moreover, a serious company will not only help you increase your income but also reduce your expenses and tax burden and optimize the occupancy rate to protect your assets.

It’s all well and good to talk about higher incomes, but how do you do it?

Each company has its own recipe. Renting a cottage is good. Experiencing is even better. Customers don’t just rent for the sake of renting, they want to have an unforgettable time and are often willing to spend more to have that experience.

What is your recipe for success?

Put yourself in the shoes of your next guests… Would you rather live in a “3 bedroom, 2 bathroom cabin” OR experience a “family reunion in a spa with a mountain view”?

Words, photos and sharing positive feedback can make all the difference…

The triple wow effect: an irresistibly designed and staged cottage, expectations surpassed as soon as you step inside, and little touches that make all the difference. This also gives 5 star reviews that will give momentum, velocity to your listing that will become more and more attractive over time. However this is not done from day 1, it takes some time. Beware of those who promise you a full calendar on day 1.

So, what will the management company do to provide an unforgettable experience for your guests?

NOTE: Judge the performance in the off-season. It’s easy to rent in the high season, but the real experts will manage to bring in income even in the very low season. It is an additional way to bring in revenue by filling that gap.

What is included in your management fee?

Depending on the management model, management fees can range from 15% to 55% of rental revenues. This rate varies according to the services included: signage, communication with clients, guest screening, housekeeping…

Would you rather pay a 25% commission on a $100,000 ($25,000) income or 15% on a $50,000 ($75,000) income, although the first one seems higher and less attractive, it is only an illusion because you will have an annual loss of $325,000 even if the commission is higher. In fact, your income will be $75,000 for the first compared to $42500 for the second. It will be important to do the math.

The revenue optimization strategy as mentioned in point 1 is vital. A lower or higher management fee does not guarantee optimal income and therefore directly affects the income in your pocket at the end of the year. Ask for an analysis of profitability potential and evidence based on comparables.

What are your packages?

Some management companies offer a single package… take it or leave it. Not very flexible! Some just post your property and others will take care of you and do your annual accounting. The range can be very wide. What exactly do you need? At Reserver.ca, we offer several packages to meet the needs of each of our partners.

How do you protect my assets?

No one wants to have problems with guests, whether it’s breakage or complaints from neighbors, or even litigation that could cause you to lose your CITQ certificate. Therefore, the problem must be eliminated at the source by filtering out unwanted customers. What is your next manager’s strategy? The Reserver.ca team has designed a 21-point filtering system. We even offer the Peace of Mind Guarantee, in case our system lets an unwelcome guest through. Yes, no system is perfect!

What is your target occupancy rate?

If your counterpart gives you a rate that is too high or too low, beware. It means he doesn’t know his business well or he thinks he’s taking advantage of your lack of knowledge, and you don’t know that. However, if they tell you that they will find the sweet spot, i.e. the lowest occupancy rate for maximum revenue, they are an excellent candidate. In fact, a perfect optimization between the income and the occupancy rate will allow you to spend more often personally enjoying your property while avoiding premature wear and tear and risks of breakage. The best of both worlds… However, be wary and ask for proof… At Réserver.ca, this is our approach… Proof in support

On which platforms will you market my property?

One of the keys to success is marketing. A good manager will not be satisfied with just one platform. If it only tells you Airbnb, run away! Although this is a major channel, there are other channels that can bring you more. It will broadcast the profile of your property on the best global and Quebec platforms, in addition to social networks. This aspect is essential, do not hesitate to dig on this subject.

How do you ensure quality control?

Cleanliness is one of the main points that come up in guest comments. The management company must therefore ensure that the maintenance of your property is impeccable. Comments are directly affected by housekeeping. A bad review could sink your listing and at the same time directly reduce your income. It will be important to never neglect this aspect and to ask your suitor for clear answers.

Other important points such as the accuracy of the information on the listing, the accessibility of consumables, the maintenance and repair of goods or property to offer the least friction possible is not to be neglected either.

How do you handle emergency situations?

Providing fast service is essential. That’s why we respond to calls within 15 minutes and go to your location if needed.

What is your plan to help reduce my expenses?

Website with integrated reservation system, property manual, maintenance, cable TV, etc. These are all expenses that can be reduced while maintaining an exemplary customer experience.

Since there is a big difference between the tax rate of a tourist accommodation (about 19%) and an apartment building (about 50%), we make every effort to ensure that your property falls into the former category. A significant reduction in your tax burden, right?

What do you have planned to save me time and free me from repetitive tasks?

We know: time is money. And managing a short-term rental property is time consuming. Reserver.ca partners save a lot of time by automating certain repetitive tasks. This is especially the case with email automation and a security system with smart locks and much more.

In conclusion, entrusting the management of your property rental to a specialized company can save you a lot of time and money. But to find THE right company that will meet your needs and help you achieve your goals, make sure you ask all the essential questions.

Feel free to ask us for a business case and see how we can help you make the most of your rental property.

A pool cover torn by a barbecue thrown during a party with too much water. Repeated complaints from neighbors who can’t stand being woken up at night. An owner who has to pay thousands of dollars in fines or has his or her license revoked by the Corporation de l’industrie touristique du Québec (CITQ). Short-term rental horror stories are heard every week.

At Reserver.ca, we have designed a filtering system that allows us to quickly identify undesirable customers and, therefore, protect our partners’ assets. Before revealing the secrets of our system, let’s first look at the source of the problem.

Why does short-term renting have such a bad reputation?

Since the arrival of Airbnb in 2008, short-term rentals have grown incredibly. Many owners of cottages and condos have embarked on this adventure without knowing the ins and outs of it.

This is what makes it possible for 30 people to party in a condo designed to accommodate only two. This is also the reason why neighbors are constantly complaining to the police about night-time noise or are fed up with their parking space being occupied by unscrupulous strangers.

The reason municipalities and the general public don’t like Airbnb is that even if they ask the police to intervene, the police can’t force guests to leave. In fact, the legal contract between the landlord and the guests stipulates that the latter have the right to occupy the place for a given period of time. Therefore, no one can evict them until the end of their rental contract.

The police can ask the revelers to calm down, but their power ends there. And even if the law allowed it, they still couldn’t force people under the influence of alcohol or drugs to leave the premises and take their cars.

Of course, we want to avoid trouble. That’s why you need to eliminate the problem at the source by filtering out unwanted customers.

How do I do a good filtering?

The Reserver.ca team has designed an advanced 21-point filtering system. These rigorous criteria include:

• Refuse all last minute rental requests (people who book with less than 24 hours notice are more interested in partying than spending a quiet weekend at the cottage);
• Ensure that the name and address of the person making the reservation matches the credit card and identification required;
  • If in doubt, check the guest’s social network profiles;
• Require a $500 penalty and eviction if there is a complaint from the neighbourhood (if it is written into the lease, it is allowed).
• And much more…

For example, last year the person responsible for a reservation provided a driver’s license that was no longer valid. After a search, the phone number of the credit card holder in question was found and… it was learned that the lady had had her wallet stolen two years earlier. As you can imagine, the reservation was refused.

Criminals look for loopholes and new properties to rent, as inexperienced landlords are not aware of all the screening rules. Thus, they exploit the smallest loophole to make parties and mayhem.

A management company for peace of mind and asset protection

To avoid unpleasant surprises and problems, hiring a management company that has an advanced screening process is the best solution. But before you entrust this responsibility, make sure you understand what is and isn’t included in your contract, as not all companies offer the same service and are rarely on the same level. For example, some management companies do everything but communicate. This means that these companies do not screen customers and are not responsible for their actions. We understand that the risks of parties and skids are important.

For its part, Reserver.ca offers a turnkey service that includes customer service with rapid communication. We even offer a Quiet Guarantee. So, if our filtering system lets an undesirable client slip through its cracks (no system is perfect, unfortunately) and your cottage suffers major damage, we promise to reimburse you for the amount deductible from your insurance policy.

In conclusion, at Reserver.ca, we are here to improve the image of short-term rentals by offering you a professional service, maximizing your profits and avoiding all kinds of disputes. We are confident that our system of filtering unwanted customers is effective. And if something goes wrong, our guarantee protects you. Long live freedom and peace of mind!

Finally, we remind you that we do not seek the highest occupancy rate for the properties we manage. Instead, our strategy is to lower the occupancy rate by adjusting prices on a daily basis to achieve the best possible profitability. The more a cottage is rented, the more wear and tear occurs and the greater the risk of breakage. And when you minimize wear and tear, you protect your assets at the same time. To learn more about this subject, we invite you to read the article What is the best recipe to increase your rental income?

Feel free to ask us for a business case and see how we can help you make the most of your rental property.

If top chefs are reluctant to share their recipes, we’ll let you in on our secret recipe, which includes 4 ingredients exclusive to Reserver.ca. Thanks to it, all our partners see their rental income increase significantly. You’ll find that it’s a good mix of technology and marketing.

Ingredient #1: A dynamic pricing system

Airlines were the first to adopt dynamic pricing. As such, their rates vary depending on several factors, including: occupancy rate, time of year, day of the week, departure/arrival time, number of days prior to departure and length of stay.

Since we have been using the dynamic pricing system, our partners have seen a 25-40% increase in revenue.

In 2019, we personally acquired several cottages. Of these, one had generated a maximum income of $41,000 over the past 10 years. Thanks to the dynamic pricing system, and the other ingredients in our secret recipe, this cottage brought in $135,000 in gross revenue… in the midst of a pandemic.

Our pricing system is based on data science and uses 7 factors to determine prices. Among other things, we note the seasonality, the day of the week, the special events (Christmas, school break, festival, sports competition…), the duration of the rental, the quality of the cottage, the occupancy rate of the surrounding cottages and the number of days between the reservation date and the rental date.

The sweet spot is what we aim for for all our partners, i.e. maximum income for the lowest possible occupancy rate. By maximizing the efficiency of your cottage, you can also enjoy it more often.

Beyond emotions

Thanks to technology and the science of numbers, emotions can be put aside when it comes to pricing.

Some people underestimate the attraction potential and true value of their cottage. In contrast, other landlords overestimate the rental price because they determine it based on the sentimental value they place on it. Unfortunately, the magical moments spent with family and friends and the love put into renovating your home are worthless… to your next guests.

With the dynamic pricing system, the price is calculated objectively and scientifically. Much more effective than feelings or “guesswork”!

Concrete examples

1. Let’s say it’s a Thursday, in low season, and someone decides to rent a cottage from Monday to Friday of the following week. This person will pay much less for the same cottage than someone who books it months in advance, when the occupancy rate is high.
2. Chalets located near a ski resort have a very particular rental profile. Since demand is high from December to March, prices increase during this period.
3. Has your property had a high occupancy rate for several months? It means that the rate is too low: it’s time to raise your price.

Ingredient #2: Maximum visibility

Remember this: the more your cottage is seen, the more likely you are to rent it at a better price. This is why we multiply the distribution channels to increase the visibility of the cottages that the renters entrust to us.

Of course, your cottage will appear on the Reserver.ca website, but it will also be on several rental platforms (online travel agencies) and on social networks. And you can’t imagine the power of a good Facebook ad!

Ingredient #3: The triple wow effect

When renting a cottage with Reserver.ca, people don’t just want to rent a cottage, they want to live an experience. That’s why we do everything we can to create a triple wow effect.

• Wow #1: A cottage with an irresistible design, staging and lifestyle that you can’t help but fall in love with when you see the pictures.
• Wow #2: Expectations immediately surpassed as soon as you set foot in the cottage.
• Wow #3: The little things that make all the difference: A welcome gift, a call to make sure visitors have arrived and that everything is to their liking…

Be assured that people are willing to pay more to experience the triple wow effect. And they will reward you with multiple stars and positive reviews.

Ingredient #4: Feedback momentum

What is the second thing people do after looking at the photos? They read the comments. The more positive comments your cottage gets thanks to the triple wow effect, the more credibility and attractiveness it will gain.

Here is the proof. Reserver.ca owns two log cabins. These are identical and are located opposite each other. So what makes a cottage’s occupancy rate so much higher than its twin? We bought the most popular one a year before the other. This one is therefore one step ahead of the recent positive reviews on the various rental platforms. It is more attractive, therefore is rented more often.

What about the negative comments? There is no escaping it: some customers are “unsatisfiable”. But since their negative comments will be drowned in a pool of positive comments, they will not affect the choice of tenants. Plus, if you accept the criticism, apologize and mention that you’ve done everything you can to make sure it doesn’t happen again, people will see how important the customer experience is to you.

With these four ingredients, you have the recipe to increase your income by 25-40%.

Think hiring a rental manager will lower your income? Think again. Let’s say the company takes 20% of the rental costs, but allows you to increase your revenue by 40%. Do the math: you’ll still be a winner… plus you’ll have a lot less responsibility.

Want to know more about Reserver.ca’s unique winning recipe? Request a business case here. We will be happy to answer all your questions. After all, choosing a rental manager is an important decision that cannot be taken lightly. It’s worth taking the time to make an informed choice.