⭐ Concierges: how to answer owners “how much will I earn”
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Hello and welcome to the J'poster Complet channel, the channel which helps seasonal rental companies, professional sub-renters and seasonal rental concierge services to become serene and ultra-profitable entrepreneurs. Today, we are going to focus on a problem that we encounter, more particularly, when we are a seasonal rental concierge service. We can also have the situation when we are professional sublets, that is to say that we are going to work on someone else's real estate and in these cases, well, obviously, this someone On the other hand, he tends to tell us “well, ok! I have come to trust you, but how much turnover do you think you are going to make with my apartment or with my house?” and that's a real question. How do we respond to it? Does it need to be answered? Well, I'm answering that today. I am giving you everything I can to help you in this situation, to be as credible as possible and provide a response that will not be detrimental to the future of your activity. So if you're interested, stay with me. If you're live with me today, feel free to say hello when you arrive. It's always a pleasure to be together and to be able to, well, meet up, talk, answer your questions. Please feel free to say hello when you arrive. Well, I will answer you with great pleasure. If you have not also subscribed to the YouTube channel, please do so. I noticed that more and more people are watching us on YouTube. So I think that, there you go, my message gets across. Don't hesitate to subscribe to the YouTube channel and activate the bell, so you are alerted when I come live. And then as it could even be, if you're doing something else, tack, you can see the live performance of J'poster Complet and we'll get together. It's always nice.
Hello Axel. Welcome. "How are you ?" Well, look, I'm doing very well. Thank you for asking the question. It's super nice. I'm doing very well. So, I'm going to start answering that. Hello Maxime. Welcome to Maxime, who is watching us from YouTube. Hello Virginie. Welcome to you, who is also watching us from YouTube. Welcome to this live. So, if you are, as I said earlier, a concierge service, either just starting out, or a concierge service which is developing, or even a professional rental company with owners who ask questions like this -there. Well, it's quite easy to find yourself in this position, where the owner tells us, well, “how much do you think you'll make with my apartment?”. And for many excellent reasons, we don't have the answer like that immediately, because maybe it's a new city, or well, because we're starting our own business and when we start, we don't have the answers to everything, or because we just don't have the number in mind. [Laugh]. In these cases, we can say to the customer: “well, listen”, finally to the prospects, to the owners who we wish to convince of the quality of our service, “listen, I can come back to you with figures to help you to have better visibility”. In this case, in my opinion and from experience, what will potentially be the most detrimental for you in the continuation of the activity, would be to offer him an extremely precise estimate on his apartment or his house, in particular to say it: “well, suddenly, at your address, the fact that you have a swimming pool, and because I noticed that it is, after all, a T2 with a very large surface area – obviously I arrange, I say anything – well, I calculated that we could make such an amount, that will give such a turnover. In this matter, in my opinion, it is very important to give yourself some room for maneuver going forward. For what ? Because an owner, to whom we are going to announce a figure, will stay most of the time – we don't blame them – we have announced a figure to him, but most of the time he will remain extremely fixed on this amount. . And he will be able, subsequently, to criticize you either for price reductions or even price increases, sometimes that happens, or to tell you: “there you go, we didn't make that amount, etc.” So, it's quite risky to do something very specific. Plus, it usually takes a long time. So, this is not the recommendation I would like to make to you today. I have seen cases, in particular, a company for which I work and I do consulting, a company which has a lot of assets, several hundred, and in fact, which, as a result, found itself, in fact, quickly – we're going to say, so I have the word “engonncé” that comes up, but I think it's my dialect, so this word must not be very French, so I'm going to look for a much more French word – “stuck”, in fact, quite simply, the word is stuck. We are stuck, in fact, in a straitjacket which is linked to the figures that we announced to the owners, and as a result, as soon as we want to change the prices a little, we find ourselves having to constantly validate with him everything that Everything that needs to be done is necessary to be able to properly manage the activity. So, it is really not desirable to fall into this straightjacket. The idea is really to be able to provide the most relevant response possible to owners, while not artificially paying for this straitjacket.
So what is the solution to this? We, what we do for our clients and what I recommend you do, is, in fact, to provide an answer which is more based on market figures, to say to them “listen, the market currently for a well of this typology, it is from time to time” you can even give a range which will really allow it to have an order of magnitude. Ideally, what I suggest to you is to give an estimate of overall turnover, rather than doing something very detailed per month, giving average prices, etc. Giving average prices is the best way, to subsequently find ourselves debating with our owner what to say “yes, but, then, we are not, we were at 50, but we went to 45, because etc.” And all of this is damaging, because in fact, we waste time optimizing the owner's financial performance. So, for me, really, the best recommendation is to say: “Look, I'm giving you an order of magnitude markets, of what is possible to do with this type of property in your city. I'll give you a fork. It gives you an idea so that you can do, well, quite simply, your own calculations on your side, to see if it suits me and we stop there in fact” And, for me, my recommendation is to really stop there. You might say to me: “Yeah, but ok, how do I get this market range? What tools do you recommend we use?” Well, that's all, as always, the classic tools for estimating a market's potential. So, I talk a lot about AirDna on this channel, because it's true that it's one of the most economical tools on the market. Well, AirDna also has competitors like Transparent, for example. If you want to see the site it's “seetransparent.com”, so it's “see-transparent.com”. But, these are much more expensive tools. On AirDna, I can even show you, in fact, I had, I had planned today to show you the screen on which you can get this information so, well, there you go, you give the total kit today on how to ensure that you give your market estimates, give a boost to the owners, also show the credibility of what you share, since you can announce the source – moreover, I did not specify – but Well, I use a tool with market statistics. It's not, it's not me like that, it slipped my mind, I did that on the corner of a dessert table, not at all. This makes your answer even more credible and enhances the quality of your answer. Now you are not signing on your children's heads that you will make them 45 euros all year at least.
Maxime, you tell me: “if we give a slightly large figure, wouldn’t we risk motivating our owner to launch into LCD himself and lose our property under management or subletting?” So, I have two things that inspire me. On the somewhat large figure, I suggest you give a range. And we're going to see that in AirDna, so the 50 percentile and the 75 percentile. I'll just make a bridge, later, on the percentile, in case anyone has forgotten what it was. The fact of giving a fork immediately extinguishes the potential for inclination, you see saying to yourself “ah my god, but it’s the goose that lays the golden eggs!”, this thing, I’m going there alone , etc. So, this is the first point that your question inspires me. The second point I think about is that, overall, an owner who is already going to turn to a concierge service is very probably an owner who has already perceived all the complexity, in fact, to manage a seasonal rental on a daily basis, and who therefore has very little chance of saying to himself “my god, it’s the goose that lays the golden eggs, it’s going to be great!”, because he very probably has understood that, in fact, it takes a crazy amount of time and that's why it's a job, and that's why there are seasonal rental concierge services, because there are lots of people who want to do something other than that with their time. And so, that’s why we exist. Now, if you want to be 1000% sure that you are not falling into this risk, I think that an idea, it can be well qualified the owner at the beginning, to start by asking him questions in the, in the interview with the prospect, ask the questions, understand his context well – which you probably already do, but it could be one of the possible ideas – get him to talk about his situation. If you already start to hear that, well, he tried it alone and in fact, it completely tired him, and that he no longer wants it at all, also in reverse you hear someone who is a total novice, who has never farmed, who just has an apartment that is coming up soon. It's true that it can be one of the little alerts to keep in place.
So, to show you how it works on AirDna, I'm going to share my screen and we're going to go straight to AirDna. So here, just to recap, if some are just joining us, the recommendation is really to give an order of magnitude market for an apartment in a city without being too precise to avoid putting yourself in a golden prison , which will subsequently prevent you from doing revenue management, and which could potentially taint the owner relationship subsequently, because the owner does not understand why commitments legitimately made are not respected, and that is true that it's quite meaningful. So, give an order of magnitude market to provide an answer, while avoiding placing ourselves in a straightjacket, in a straightjacket which would prevent, in particular, revenue management. So, to give this market range, in AirDna, you have the revenue page. So it’s true that it’s sometimes: asks you the question: “Is this the free part or the paid part?” The free part of AirDna is only overview, and otherwise the rest of the screens, which I had the opportunity to present, in particular, in others, in other videos, it is rather the part paid. On the paid part, you have here in income the two percentiles which are the most used, at least of our fleet, are those which we use the most. You have percentile 50 and percentile 75. Percentile 50 is an equivalent of median. We can say roughly, if we magnify the line in average statistics. And the 75 percentile is the value from which you have the 25% of Meer. So, it's quite consistent, in a professional approach, to present both, since you present the average, and that's what the most professionalized ads can do. And there you have the income amounts. So as always, these are “stay” amounts. Excuse me, I got it wrong: stay + cleaning with the commission inside. Now the algorithm, sometimes being a little underestimated, I am not challenged, if you take it as it is, to give it an idea of total turnover, that's it. Another point I wanted to make clear to you – that's what bothers me, I feel, I feel like I'm forgetting something, and that bothers me, but it's not serious. That’s it, that’s what I wanted, YES! That's it, I found it. Thanks for your patience. What I'm going to share with you, a little tip too which really makes a lot of sense at the moment, is to share the performance which is observable in 2019 + the performance which is also observable in 2020. It may make sense to present this also to your owners, because, suddenly, you give them an idea of, there you go, in 2020, what was the worst, the worst, and in 2019, that is to say a year excluding the pandemic, this is what happened. There really, you present an exhaustive vision to your prospect by saying: “Well, the average in 2020 is better in 2020; the average in 2019, it is better in 2019”. So there, it's really exhaustive and you provide all the details so that he can do his calculations on his side, because, often, that's what it is in reality, is that the owner will do his calculations. A point that I also forgot to specify, if you ever do the exercise at home, is to obviously filter carefully on the type of good. There we cannot allow ourselves, for this exercise, it is perhaps obvious, but it is always better to say it, we cannot allow ourselves in this exercise to look at the scale of the whole city. If you have an owner who comes to see you for a T3, we will do a filter on two rooms and we will collect the figures only on T3s, so as to be as accurate as possible. On the other hand, I tend to never filter on the number of people who can be accommodated in the property, in many cities, in fact, we do not have playstore ads, especially when we start to arrive on the largest apartments. So I prefer to say to myself “too bad, I take apartments that can accommodate all types of people” For example, on the T3s, I will look at both the T3s which can accommodate four people, but also the T3s which can accommodate six people. But as in any case, I am in a dynamic of giving market orders of magnitude, it is a relaunch, in quotes, which is not excessively serious in this context. And then, you always have to set yourself to “complete” to be sure to be as precise as possible. That's why. Listen! I shared with you what I wanted to share with you today. Do not hesitate to ask me your questions, if you have any on this aspect. It is with great pleasure. I see I have some questions. So, don’t hesitate, don’t hesitate to ask me.
So hello to you who are watching us from Facebook. I don't have your first name, but hello, hello. “I also make overall estimates, knowing that these are estimates which in no way bind my company. And often if I do a price reduction or promotion, I have a better occupancy rate and between having zero or something, in general, they are takers”. Yes, between having zero and something that is perhaps a little cheaper, they are takers. Listen, it's very good, because it means that I think you also have owners who can be trained and coached in the seasonality of our profession. And by the way, we have to be agile on experience prices in certain cities, certain owners, where despite everything have difficulty understanding that if we don't lower prices, we won't sell, in fact. And sometimes, there are many situations in which – I speak with knowledge of the facts – for the apartments that we optimize at J'show Complet, there are quite a few situations in which, but in fact, the owner of the company we work for, tells us: “well no. It's no to go lower”. We warn that the market is a little lower, and that we should go a little further. We are told “no”. And in fact, it's true that we often find ourselves having empty nights, and in these cases, in general, it's true that the owners come back to us saying: “well ok, I saw, so we avoid, so we will perhaps make your recommendation, we will perhaps lower it a little”. So, but, it's good, because it means that, if you don't have these situations, well, it's maybe that, there you go, it's, you also shared well with the owners the why and how. And in fact, the fact of making global estimates like that pays off and it saves you from falling into a pitfall where in fact, you are tied hand and foot to be able to do the job.
Grégory said to me: “Sum Elise, how much percentage should we subtract from the income since the commissions are included in it? THANKS ! ”. So, if you really want to present to the owners an income excluding commissions, I think you have to remove 17%, because in the end AIRBNB says “15%”, but it is very often 15% excluding taxes on which it gives us collects VAT, so it is not always 15%. Booking is 17%. So, for me, I divide it up to 17%, because – excuse me I didn't finish my sentence – it's 15% excluding taxes on AIRBNB, often it adds VAT, which means that the 15% is transformed in 17% so there you have it. And like Booking, it's 17%, I would have said, if you really want to offer him something excluding commissions, you have to deduct 17%. Now, there is just one small point of vigilance, which is that it will be living room + cleaning inside. So, there you go. Now, if it's that, or these are generic figures, I always prefer to provide the market figures, but even if, for example, you produce the market figure, you retain the 17% commission, it There is the small household bill, but in reality, when we tell ourselves, for example, that we have the 75th percentile, that is the price, that is the income from which we have the best. So, that means that even if the amount you have is a little overestimated, because there is some cleaning involved, in my opinion, it is not extremely serious, in fact, to present it like that to the owner, because it is very likely that you will know how to make this small increase later, since the 75 percentile is the amount from which we have the 25% of the best. And so there you have it, you won't necessarily be at the minimum. You can be a little above that.
On the other hand, you say “I am interested in AirDna type software, would it be possible to have a comparable one?”. The comparable one, the competitor that I know, is called seetransparent. It’s “s”, 2 “e” and then after “transparent.com”. It is a very complete tool. We are often in contact with them. It's a very complete tool, it's a tool that is very expensive. And you have to count at least, without exaggerating, times five or six the price compared to the price of AirDna. So we, to this day, and I've talked to them about it, I've told them about it. But this is also the reason why we stay with AirDna today to work for, for the 450 properties for which we work on a daily basis, because, here it is, it is a tool which is, in my opinion, is excellent value for money.
Roman. Welcome Roman! Romain who is also a regular live user: “can we use rentalizer on an address for an owner or is it too specific?” Ah, that's an excellent question. Thanks for asking, because I almost forgot to mention it. Thank you so much. In fact, so today, I left, well, at the beginning when I saw this new screen, moreover let's salute the work of AirDna which really consists of often creating new screens. And that's very nice to work with a tool that is quite dynamic, which often creates new screens. When this new “rentalizer” screen arrived, I was a little doubtful at first, because I said to myself “well, it’s weird, the thing alone, etc.”, I said to myself: “ Elise, don’t think like an old reactionary owl, try it and then we’ll see.” As Olivier Rolland would say: “let’s be a little skeptical”. So, I tried. The only criticism I would make of this screen is that it is too nebulous for me, that is to say that, in fact, I arrive, finally, as soon as we have a with the simple rock methods of management, we manage to reconstruct what the system does at this address, because it takes, then, it is true that it takes an area that they consider to be comparable entities. Now, if we look at the occupancy rate, the average price, moreover, we can reconstruct it. And for me, there were times, quite a few times, where, in fact, by testing and matching what rentalizer was doing and what I was seeing in the occupancy rates, the average prices, etc., I I had some misunderstandings, in fact, about the biases there were. And what I find unfortunate is that we don't have transparency on the calculation methods: what are the growth hypotheses, for example? And it is for a company – I think – for an independent investor who just wants to confirm, an individual, why not, but we as a company, when we are under rental, when we are a concierge service, we cannot control only half, in fact, the figures that we deliver to our clients, quite simply, because afterwards it's us that they will come to see to say: “You didn't do them”. [Laugh]. We are still obliged to fully master our figures, and that is perhaps the gray spot in this screen. If I find that we don't understand, well, I don't understand the growth assumptions that are made, and I would just like it to be more transparent. So, that's just the point of doubt. And it’s true that currently, I don’t necessarily recommend it. And we, when we have a concierge request, we are not going to use this screen, we are going to rather go and take the data, well as I showed it there to have greater control in fact of the figures than we present it to the owners.
“Thank you for your feedback.” Well! Listen, please, please. With great pleasure.
Grégory said to me “Thank you Elise, I will make an appointment with you through Sébastien Moré”. Listen with great pleasure, with great pleasure to make an appointment with me, you can also write on the e-mail “helloijannoncecomplet”, if you wish; otherwise make an appointment with me, if you already have my little link at hand with, with pleasure, my little calendar link to make an appointment with me with pleasure.
Hello Nadia. “Hello Elise, late again”. No worries, no problem. We accept, whatever the arrival time. There is no problem, no problem.
Romain: “Great thanks”. Well, listen, please.
Hello Pascal. Welcome to you. Welcome, welcome to live.
Look, I think we covered the whole topic today. If you have any questions in the meantime or if you watch the live replay, don't hesitate to ask them in the comments. I'll always see later. So, on YouTube, I definitely respond to all comments, without exception. I have a little system that allows me to easily see the comments and therefore make sure that I have responded to them. So, don't hesitate to ask your questions, even afterwards. On YouTube, I will answer them with great pleasure. On Facebook, I'll review the videos on Facebook to make sure I've responded to all the comments as well. So, don't hesitate to ask your questions.
It was truly a pleasure to be together again today. Thank you for your attendance and for following these Lives on Tuesday and Thursday at noon. It's always a pleasure. I'm telling you, well, see you Thursday for the next live at noon on a totally different subject. Until then, take care of yourself and see you Thursday!