My Bulgaria: Forums

Trigger · Super User! Joined: Jul 14, 2005 Posts: 447

Bit of a general question this really, but I am interested in people who have attempted the whole letting game on their own.
I appreciate some local assistance is required with key handling and cleaning but has anybody tried the rest themselves.
I'm thinking about members who have marketed their place, taken bookings, organised the change overs etc and dealt with problems and complaints themselves on the phone from overseas.
Is this possible, or is the only way to hand over the keys to a third party letting agency who will take there 20% (or higher) and hope for the best.

Trigger

Richie · Posted: Thu Nov 24, 2005 5:06 pm Post subject:

Hi Trigger,

I'm obviously biased in this respect as I run a management and lettings company, but I think what you need to consider is the whole customer experience associated with arriving in a foreign country, being collected or finding a property, ensuring cleaning is up to standard, possibly having a ready-stocked fridge etc etc. Leaving it to chance could be very hit or miss.

Whilst we currently charge a 20% fee per booking, only a tiny fraction of this could be classed as a commission as for that money we:
* meet the guests at the airport (uniformed reps with a logo'd company vehicle)
* transfer them (or if they are hiring a car we escort them so they don't get lost)
* clean the property before they arrive and after they leave
* launder bedding and towels
* register them with the police (which can't always be done on the day of arrival)
* provide 24 hour assistance and a tailored information pack for each property

...and so on. We also take the hassle out of the whole bookings process.

Like I said, I'm biased, but I think letting agents can offer excellent value for money and less risk for owners and guests alike. I also believe your guests will be prepared to pay extra for a rental which is well serviced which would cover the 20%.

Sorry I haven't really answered your question - I'm really interested to see how others have got on.

ardleystar · Posted: Thu Nov 24, 2005 5:19 pm Post subject:

And don't forget Trigger that you have to register your property and pay 15% tax on your income plus VAT etc. So if you aren't going it alone the bottom line is to say the least modest.

Mat · Mega User! Joined: Feb 28, 2005 Posts: 2648

You won't register for VAT if your turnover is below 25K euro.

AJ113 · Posted: Thu Nov 24, 2005 6:12 pm Post subject:

I do a hybrid version of it Trigger. I market the property, communicate with the tenants, take the bookings etc. My POA/property manager (you know who she is Richie!) deals with the meet and greet, handover of key and cleaning.

I've found that transfers aren't usually necessary because my house is in the sticks and therefore tenants always hire a car. This may be different in the case of an apartment in a resort.

I don't think it's possible to do the whole lot from the UK. You and your tenants must have a reliable contact in BG, if only for emergencies. What would your tenants do if - for example - the washing machine started leaking all over the floor, or the electricity failed? Also your tenants need to feel that they have been looked after well, otherwise you will not get repeat bookings, and even worse you may get negative reviews on the websites that you use for advertising.

Trigger · Super User! Joined: Jul 14, 2005 Posts: 447

Interesting comments.
Good point Ardleystar, the tax position of operating from the uk if you were looking at avoiding BG tax, which obviously I am not, could be appealing Wink

What has put me off with management companies and 'tie-ins' with tour operators is the exclusivity they require. The property is a family holiday apartment as well as an investment and I am not keen on handing it over for the duration of a season and having to book my own place if I want to go out there..
Perhaps I am being a bit nieve in wanting my cake and eating it but achieving some rental but ultimately keeping some control is my goal.

Its first time round the block with me on all this, so what the reality is of taking a call at 11pm to be told the electricity has gone off in the apartment for example, I don't know.

Perhaps the hassle would be so much that I can't have my cake and eat it.

Trigger

scanniaman · Posted: Thu Nov 24, 2005 7:45 pm Post subject:

Trigger, that's where aj113 has been cute. He deals with the stuff that can be handled from the uk while the poa deals with the rest. If he wants to reserve a week for himself he just books it on his own website as reserved so everyone can see. Of course this is fine but you could expect a 'trade off' for bookings until the recommendations and repeat bookings happen, as it's not advertised thru an agent. Personally I will do the same as aj and see how it goes although I won't expect a sudden rush of business as renting is still relatively new over there. May be aiming at the Germans is a good idea - see earlier posts on Bulgarian tourists.
Scanniaman