Here’s what I did [tongue]
Following the “we all want to live on the beach” logic I bought a tiny beachfront cottage that was the only one in the row that needed work. Furnished it, put in the extra bathroom and wooden deck to catch up with the Joneses. Local long term rentals are low, but tourism is popular, albeit fairly seasonal, so we let on a daily basis.
IMHO the daily tenants don’t do as much damage (no need to move furniture or knock nails in the walls), they pay up front and then get out of your life. The rent is pitched higher to attract more affluent tenants and the rent is as good or better than long term letting. (Funny how folks call just days before Easter.)
PLUS, we have a very cheap holiday home which the agent cleans for us before and after. (Of course we only stay there if vacant – which also means the beach is not crowded).[thumbsupanim]
Anyone else doing this kinda thing?
Want a place to stay for your next o/seas fishing trip? Everything from dishwasher to drier is there.Glenn
I would like to do this one day. Who rents it for you – the agent or the local travel bureau?
Hi Zack
We don’t quite trust the Agent’s marketing effort, so for now we are doing our own marketing. The Agent is still useful to find the odd tenant, hand over the keys, check inventory and clean before/after.
We have a 2-tier commission arrangement with the agent – less if we introduce the tenant and higher for the agent providing a tenant.
We have essentially taken a residential property and turned it commercial. We’re keen to see this “business” start well, so have not left it all to the Agent (yet). Occupancy is still fairly low, but it is early days, and we anticipate return custom and word of mouth after about a year of operating. In fact, for busy peak times we have so many enquiries we’re wishing we had more of these -> working on it. December is already fully booked!
Sounds good. I like your idea.
I did a bit of reserach on the Southcoast NSW and found that most agents agreed that a beach house may rent for 6 to 10 weeks a year. Of course you can be creative and if you have something out of the ordinary you may inproove on that figure. But honestly even if you double it, returns are on the very lean side, am I wrong?
Of course the prospect of an almost free holiday house is appealing and you must account for that value as well. Good luck. Have you tried to advertise on the net to other countries?
May God bless you
and prosper you.
MarcI asked a lot of agents what occupancy they were getting – but statistics were not their strong point, so using my photographic memory I glanced at their reservations book and guessed a 30% occupancy figure. So far, we’re ahead.
I have set up a slightly embarassing web-site – http://members.mweb.com.na/glenetti (may I mention that here? – too late I guess) [worried]
German version still under construction – Tut mir leid. Also need a much better URL. Google’s never going to find this.I wonder, do people go on holiday less in Australia? Marketing is important.
Glenetti,
Coulnd’t get to the website, could you check the address you gave please.
Thanks
PKHi PurpleKiss
The site link worked for me, perhaps my ISP only allows member access to this site? Please try again, but I’ll check with the webmaster.
Glenn
I can get to it. I’m not with the same ISP.
PK – you could have a browser incompatibility or it could be a caching or DNS (Domain Name Server) issue with your ISP.
Call your ISP about this one – there may be other sites you can’t get to…and you won’t know until you try to reach them.
Cheers,
Aceyducey
glenetti
Looks very nice and well done. Perhaps you might want to take another photo of the view though when it is a cloudless day. Makes it look a little dull.
If I am ever in Namibia for a holiday, I’ll let you know!
‘Eat rich food, barbeque a yuppie’ [greedy]
Hi Acey, Rugbyfan, PK
Thanks for the comments and whew, glad the problem is not at my end.
We do intend updating the photos, just so busy renovating we generally don’t even sit on our own deck that much, let alone remember the camera. Trying to co-ordinate clouds and yachts is a bit tricky too…..
Open invitation to see the “oldest desert” in the World. Exchange rate on holidays is in your favour. Plenty of real Africa with first world facitities. Just plugging our tourism here. Watch out for really exclusive tourist traps though.We’re thinking of a trip to Aus in Dec for a look-see – cash flow permitting.
Hi Glenetti
I used to rent a place out on a weekly basis but reverted to permanent letting after I realised the agent had been a bit optimistic with the occupancy rates. If I lived in the town, I would have liked to continue and manage it myself.Nice website. If you’re looking to attract o/s tourists, you might want to have less pictures of the house and include some of lions and elephants. Also mention how close you are to the game parks there. Aussies aren’t likely to go to Africa for a nice beach [wink]
Good luck
JudiGlup, I just realised you are in . . . .Namibia !!
So much for my brilliant theory of 8 weeks rental a year.
So ho hum well, what can I say? the photos look v/good, neat and fantastic view. And you have better than 30% of the year rent, at a daily rate, that is not bad, better than some hotels I know !!
May God bless you
and prosper you.
MarcHi guys
Thanks for the kind comments. Actually, the place is pitched mainly at the local market – Namibia, South Africa, Botswana holidaymakers – who we see as a “more reliable” source for our little place, especially if another 911 hits world travel plans.
You’re quite right, o/seas folks want the Big 5.
We’re a little worried that the agent will pocket some of the income and not let us know – so we monitor them via a guest book and analysis of water and power consumption.
Hi Glenetti,
I’m renting a cottage by the night too[biggrin] in
Wellington, NZ.
It happened by default. Four years ago two neighbouring sections to my own home (one with an old vintage 1br cottage on it) came up for sale. We were worried that someone would put on two big mcmansions and spoil our outlook. My husband said if I did buy it I would have to make it pay its way. Always like a challenge[lmao]We ended up buying both sections (two quarter acres), and rented the cottage for $140 a week for a while which didn’t cut the mustard. So like you we furnished it up right down to the towels, cute as, put it on the web and rented it by the night to tourists. It took a year to get going, but now we have it rented at about $500 pw for 65% of the year and its growing. Its expanding so much every year, I now just put the nightly rate up every year and keep it at about 65% occupancy. More money, less wear and tear. My visitors have been great and they mostly leave it tidy. Only breakages have been the odd wine glass or cup and even then they usually leave cash to cover it. We are getting return business now, and during summer I’m constantly turning people away. I do all the cleaning and gardens and website design myself, and I’m home with my kids so it works out just fine, and theres always somewhere to stick the friends & rellies.
The other section we got is looking ripe for another cottage as the business grows.
I know I could fill a second one for 26 weeks of the year, but the winters get a bit thin.
I have never put it with an agent, it has been marketed by website solely so I have some leeway to expand my marketing.
I wouldn’t recommend this type of renting for any old property, but if you have a property with that “special” something or magic setting it can be very lucrative and cover the extra cost of holding an IP in a prime area and staying CF+.Hi Fern
Sounds like a good little “passive” business you’re doing there, and you even have the space to develop more.
I’m amazed that web advertising alone has got you this far. We’ve been doing smalls advertising mainly, most locals don’t really rely on the web (yet).
Our advantage is we have relatively cheap labour for cleaning, so it is easier perhaps for us to use OPT (Other People’s Time) in the form of an agent while using OPM.
Well done, you obviously find it rewarding.
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