August 11, 2005
We have started thinking about developing a rental program
There are two ways by which we can reduce our condo fees and increase the value of our properties - reducing cost or increasing revenues. One of the main untapped sources of revenue that could flow to the association are of course rental fees. So we started to seriously consider setting up a rental program.
I will try to capture some of the current thinking in this post - and I would encourage you to give feedback through the comments (click on comments below) or by sending me email.
A rental program would be an integral part of trying to reposition the Woods as a premier luxury destination property. We would actively market our premium brand - which cannot be said of other rental agencies!
Units that would participate in the program would have to meet a minimum quality requirement. Units would also be classified into luxury classes - 2 or 3. So say you have new carpets, updated kitchen, pillow top king size mattresses, etc. - we would market your unit at a higher rate than if you have a unit with fewer luxuries and more "usage". As part of the program we would also ensure consistency of certain basic amenities - such as pots & pans, linens, cutlery, etc.
As part of the program we would staff the front desk longer than is currently the case, we would create luxurious welcome packages, we would have linen service every two days (partly to keep an eye on the units - make sure people do not smoke in non-smoking units, etc.), we would do walkthroughs through the unit post rental and prior to returning people's security deposit to ensure that everything is still there, and possibly offer other services.
On the fee side of things, we are thinking to charge owners that rent through The Woods a fee of 30% for short term rentals (we still need to come up with a number for long term rentals). The thinking here is twofold. First, that would represent a fee reduction for owners that rent through us, in return for what we think would be a much more personalized service. Second, it would flow some money to the association as a whole - which is only fair considering that the association would underwrite the startup costs and some of the associated risks.
So all in all, the program would increase the amount of money in renter's pockets, increase the revenue to the association, improve the image of the Woods in general, and thus improve the value of our properties.
Any other thoughts? Volunteers to help finalize a proposal?
Let us know...
Posted by Francois at 06:16 PM | Comments (1)