⭐ Short-term rental: should you choose subletting or seasonal rental concierge?
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Hello and welcome to the J'poster Complet channel, the channel which helps seasonal hosts and seasonal accommodation managers to become serene and ultra-profitable entrepreneurs.
Today, we are going to talk about a question that you may be asking yourself: when you want to manage real estate on behalf of other people, should you move towards a seasonal rental concierge model, or should we move towards a subletting model? What are the disadvantages and advantages of each of the two scenarios? Are there certain choices to make depending on your personal situation? We're going to talk about it together today, and I think it will help you make the decision.
If you haven't yet subscribed to the YouTube channel you're watching, most likely, well, feel free to do so. Don't hesitate to subscribe by clicking on the bell or join us on our Facebook group. You have the link just below. When you come live with me, don't hesitate to say hello. It's always a pleasure to see you, to be together, to answer your questions, and to share on all these subjects.
− Hello Maxime. Welcome to Live.
Maxime, a Lives faithful who has been with us since YouTube. I also see that we have Guesthouse who joined us from Instagram. Lives are also available from Instagram, so don't hesitate to join us on Instagram too.
We will start on the subject of subletting and seasonal rental concierge services. First, I'm going to start by defining a little what subletting is, if you don't know, and what seasonal rental concierge service is.
− Hello everyone.
− Welcome, Little Vegetable Garden.
− Hello Christian.
− Hello Romain.
They are regulars at Lives.
To be quite simplistic, because in fact, reality is not that complicated. We want to put big explanations, but in fact, the things are very simple. On subletting, we could already say: “Oh, but subletting is not legal. » Subletting is legal. Subletting is a model of operating an apartment, which is a commercial activity. In fact, we will sign with the owner the authorization to exploit the property, not for his own account, but in fact, on behalf of his company, through a subletting mechanism. That is to say that the owner will sign a lease with us, indicating that we have the right to re-rent this apartment legally, and in a commercial activity. The advantage of this is that it will get us out of the rule of not being able to rent more expensively. There, we have the right to rent more expensively, and therefore, we can create a sustainable business with that. And also, we are covered in the event of a problem. It really is something completely legal, and it's a professional activity. This is the subletting scenario. The seasonal rental concierge scenario is that you have, in seasonal rental concierge, something totally different. This is because you are an external entity who will come and provide a service to the owner of the apartment, and who will set up the seasonal part with the land part, and with the management part of the ad.
Perhaps the first point on which we can compare rental and concierge services, the first point, is the part: what do we actually do for the apartment? I'll start with that, because in the end, it's very similar in that aspect. For the apartment, in both cases, whether we are a concierge or a professional sublet, we will have to organize arrivals and departures, therefore either with someone or with a key box ; we will have to manage the housework, subcontract it, or do it ourselves; we will have to manage the marketing, therefore with the announcement, with revenue management, good pricing; and ensure sales are made. So ultimately, if we really take the daily life linked to seasonal rental, in both cases, it is quite similar. In the end, your daily life will be the same. Problem management, in the end, will be the same.
Now, obviously things are changing. And this is where you will be able to see: does one or the other suit you best? The first thing that changes, and I think the most obvious thing, is the relationship with the owner. You have two different owners, with different expectations, and perhaps even different temperaments in subletting and seasonal rental concierge. In subletting, you have someone to whom you will say: “Me, I rent you at the price of the long term, or even perhaps sometimes, I rent you a little bit more expensive, like that, you too , you are interested in my presence at your side, but that's all. You have the rental guarantee, and I, moreover, will exploit it for a short period of time. » So, the temperament of the owner who will be interested in subletting will be someone who does not necessarily want, or need, maximum profitability. This is someone who really doesn't want to hear about it, and who doesn't necessarily want to follow all that, but who wants income security. And that’s for sure a certain type of owner. It's a temperament, and it's the temperament that we're really going to satisfy with subletting.
With the seasonal rental concierge service, it's a little different. In general, it will be owners who are more committed to the financial performance of their apartment. These are people who want to continue to keep an eye on this, and who want to ensure that they have maximum profitability on the income from their apartment. These are people who will be even more likely to ask questions, and they are right, because they want to follow what is happening in their apartment, and who can set expectations, who can say, for example: "I I don't want my apartment to rent for less than 40 euros. » So in fact, from the perspective of a business manager, because in both cases, we are a business leader. Whether we are a rental company, or a concierge manager, or a business manager, we have a relationship with the owners that is completely different. In one case, it's true, in the case of subletting you will probably have much less contact with the landlords. But as a result, they will also, in your daily life, perhaps be more erased. That is to say, if they receive their money every month, they are happy, and that's it.
As part of the concierge service, you have owners who are perhaps more present, with the positive side, and the sometimes less positive side. The positive side is that they will probably more frequently give you feedback on the good performance of what you are doing, on the satisfaction they have with your vacation rental work precisely, because they came there for that. And conversely, they can also sometimes, and I don't blame you for that, but it's part of the game, they can also come and impose expectations, constraints, or come back to you, because they find that the result is not there. So, these are two different populations. To be seen according to your temperament, and your expectations, too, as a business manager.
Now, the other aspect, which is also often much debated and supported, is financially. Financially, what is the difference between subletting and seasonal rental concierge? Financially, there is no doubt. Obviously... obviously, I don't know why I say that, but in any case, I can tell you, seeing the figures, and having a certain number of orders of magnitude in mind, subletting remains a lot more profitable for you, as a business manager, than seasonal rental concierge services. Because on subletting, you will have the whole, in fact, of the profit which will fall between what you pay to your owner, and what comes from the short-term exploitation. Which is not at all the case in the context of a seasonal rental concierge service, because you therefore only have a percentage in seasonal rental concierge services. Now, the subject of finances is still quite important, because like everything in life, in general, I don't know if you have noticed, the more risks you take, the more profitable it is; the less risk you take, the less profitable it is. It's true that this is also true, since in fact, subletting is also very profitable because you take risks. Really, when we start subletting, and there, the pandemic can provide a good illustration, that is to say that if tomorrow, like the very first confinement, we no longer have the right to rent, for sub-renters, financially, it is important to have anticipated this type of problem, and to have a solid cash flow. The sub-lessors who had the strongest cash flow were able to see this period of adversity pass more easily than those who did not have good cash flow management. Because if you do not have the possibility of renting, as a sub-let, you are still liable, obviously, for the rent that you owe to your landlord. And so, in that, it's a risk-taking, which is rewarded, therefore, by the fact that, on the other hand, you earn much more when you practice and everything goes well. So there you have it, that's a bit about the financial part. Now, the concierge part is not without risks either, since as a concierge, if for example, there is confinement and you can no longer rent at all, you will not owe anything to the owner, you don't have to pay any money. On the other hand, you don't earn any money in concierge service either. So the risk is lower, but it still exists. So that's for the financial part.
Now there's the getting started part too. When we start from scratch, we can also ask ourselves: is it more worth it to start subletting, precisely to immediately make some cash, or conversely, to start in concierge. My recommendation on this is most likely to start in concierge at the very beginning. Really, I'm talking about a zero start. I consider that you leave with no contribution, that you have zero euros, you have no apartment, and you say to yourself: “I'm going to start. » In these cases, the concierge service will be easier. For what ? Because in subletting, the choice of apartments that you are going to make, it is very likely that it will be made on the basis of apartments which are empty, and which will have to be furnished. For what ? Because it is precisely in these scenarios that you earn the most money. You can also find furnished apartments. It exists, it can work very well, but depending on the areas of France, it is not necessarily easy to find, either because they are more expensive, and in which case, financially, you no longer find your way there, or because in certain areas of France, this is the case, for example, around my home, in Chauray, there are not many furnished apartments. They are often taken by storm, and as a result, it is not necessarily easy to find quality furnished accommodation that is sufficiently well maintained to be able to rent it for vacation. I lost my Latin. Excuse me. What did I want to tell you? I was talking about seasonal rentals, starting up… ah that’s it. So that means if you're really starting from scratch, I think it's better to go with concierge. You're going to charge as a service, and in those cases, it's fine. Subletting, you really have to tell yourself that you have to start with start-up capital. Depending on the trainers - we are not sub-let trainers at J'annonce Complet - depending on the trainers, we are given different start-up amounts. Some will tell you 3,000 euros, others 5,000 euros. In any case, it's in this area, in this range, so that you can already pay the deposit, since you yourself are renting the apartment. So you have to pay the deposit, sometimes a month's rent in advance, and therefore the furnishings. The furnishings are either only partial or completely non-existent. So when starting out, it's really important to have this element, in fact, on the financial part.
I'm disturbed, I don't know why, but I no longer know what I wanted to share with you as a fourth point regarding this. I will take this opportunity to greet those who have arrived. It's really live.
− Hello Pascal. I hope you're well. Pascal Carpenter.
− Hello Adri.
− Hello Mélanie. Welcome Mélanie, who is often with us.
We also have a lot of people joining us on Instagram.
So, to summarize the subletting and concierge part of seasonal rentals, subletting is more profitable, but you have more risks, and starting requires capital. Now, it's true that in the long term, with an activity that is sustainable, you can absolutely, and this is the case for many of our clients, have, in fact, a hybrid structure. And I find that this is the lesson, in my opinion, that I wanted to convey to you today. Yes, at the beginning, you may need to have a little stronger backbone to absorb subletting. You must keep in mind to have excellent management of your cash flow to be able to deal with the various unforeseen events that you may have, always in seasonal subletting, it's part of the job: pandemic, snow, yellow vest, and other things unexpected.
But at some point, there are many company leaders who choose to have a hybrid model with both: concierge and subletting. For the simple reason that sometimes, when you canvass, and I found my last point, it was the prospecting part. When you prospect, you may, in fact, have to deal with owners who, depending on their needs, will be more or less sensitive to one or the other model. And in fact, having both strings to your bow, being able to offer one or the other depending on the personality you see in the person opposite, will allow you to increase your chances of being able to work. with this person, and to have a new apartment in your assets.
So if I come back to my last point, the last point that I wanted to share on the commercial prospecting part, it is true that there is also a big difference on the two aspects. The seasonal rental concierge service is a much better known model today, it must be said. You're going to have a lot of people who will immediately understand what you're doing, which is not the case with professional subletting. There are, despite everything, a huge number of arguments in favor of the owner regarding subscribing to a model like this, professional subletting. Besides, in relation to that, don't hesitate to check out the interview I did with Nicolas Fatou from automatique bnb, who gives us a whole list at a given moment. It's super interesting. We had lots of positive comments, in fact, on this video, on YouTube. So, don't hesitate to refer to it. So a little more energy, let's say, to give on convincing an owner about subletting, because it's less known. You're going to have to deal with people who will look at you askance, because they'll find it weird, and they'll say to themselves: “subletting isn't legal. » But if you persevere, there are a lot of positive things to come, and you can convince, because there are real benefits for the owner.
So much for the different arguments in one direction or the other on subletting and concierge services. Don't hesitate to ask me any questions if you have any on either scenario. Have you ever thought about doing a bit of both? Moreover, you can sometimes start with subletting and adopt a concierge service, since in any case, you have the team, you have everything that is necessary to do the job correctly. So it's certain that very quickly, in fact, the two become very linked, and that allows us to expand our offering, in fact.
− Charles said to me: “Hello Élise”. Hello Charles. Welcome. I hope you're well.
I don't have many questions today. If you found that super clear, that's great. Lots of people joined us on Instagram.
− Hello everyone.
− Hello Nanah Ptite Lol.
− Hello Jean-Daniel.
− Hello Jean-Samuel.
− Hello Guillaume.
− Hello, Laura, I hope you are well.
Linda is with us.
− Welcome Linda.
I don't see any questions for today. Is it because I was mega clear, and you found it crystal clear? Maybe.
Just one last point to share with you, is that I do Lives…
− Mélanie said to me: “That requires some reflection. »
Yes. It’s true that this may require some reflection. It can, in fact, if only to say to yourself: “This is also a new perspective for my activity. » And besides, even if you do this as an individual, it can open up a perspective.
− Christian said to me: “How do you convince a city manager when you are in concierge service? Because often, they themselves have concierge services. »
The question of the city manager is a real question, it’s true. For those who don't know, when you start being a short-term property manager for owners, whether it's subletting or concierge service, at a given moment, as a business manager, you arrive at a stage where we are totally drowned. It's human, it's normal. It's not that you're failing, it's just that the workload is actually too much for just one person. And in these cases, we may want to recruit someone who will be our contact on site, in the field, who will take care of ensuring that the cleaning is done, that the cleaning teams are in place. place, that the training of the cleaning teams is carried out, that we make arrivals and departures ourselves, or, in the event of a failure, with a key system, that we are able to welcome the travelers, and that in the event of a problem, everything is smooth in fact with the plumber who will come by, etc. So, this is the person who will “relieve you” or be your right arm in the field, so that you can focus or refocus on the online marketing part: managing the ads, ensure that sales performance is good, that turnover is there, that prices are well positioned, etc. So, recruiting a city manager can be difficult when you tell yourself that you don't have the possibility of offering almost full-time work to the person you would like to recruit. To convince, in my opinion, when we are looking to recruit someone part-time, because full-time, it is easier, we do a classic recruitment and that's it. Part-time, to convince a concierge manager to subcontract the purely operational field part to you, in my opinion, you have to be very profitable. Because the concierge manager, it depends on the concierge service, but in fact, the concierge manager knows the job like you. He knows that this is a part that is quite time-consuming, quite difficult, so in my opinion, a tip could be to tell him: “I have something that I would like to have help with. How fair do you think you are for this job, in terms of remuneration? » And actually, you're going to allow people to talk. If you see that the person, in fact, doesn't want to at all, that is to say, really, it's not their thing at all, there's no point in spending time on it . But if you see that the person may be motivated to help you with this, even if only temporarily, until you have more apartments, and so you can find someone to hire in full time, in these cases, perhaps you have to give up, in fact, a part of your profitability, once again, perhaps temporarily, to allow you to rely on that to have new apartments or to expand your methodologies and your automation on other aspects, and give up part of the profitability to have real support, and for it to be a springboard for your development. So, I think that is important. Now you also have to remember that you can take someone from scratch, quote unquote. Someone who is not in the concierge business at all. A student, for example, who really needs to work. A student who is in college, who has 20 hours of classes per week, can totally, moreover, take charge of a certain number of tasks, be ultra motivated, very dynamic, and really need to earn a living, so with this want to work. You train the person, and the person can totally take charge of that part. It's true that a student can say to themselves: "It's temporary", but the studies can still last a certain time. And that allows you to have support from someone who will really be there. You suggest that he create his own business, his micro-enterprise, and in which case, it is very realistic. So that’s the answer to your question. I hope this can help you Christian.
− Charles said to me: “How do I subscribe to your services? »
How to subscribe to our services? If you are today a concierge or a professional sub-let, I believe, Charles, that you have made an appointment with me, if I remember correctly. How to be supported by I display Complete. At J'poster Complet, we will join the team of the sublet manager or the concierge manager. In these cases, we will simply start by auditing the cities in which you are present, and the history of the properties you have in your care to offer you an action plan, and a pricing strategy, and all the related optimization levers, a strategy for one year. We present all that to you: the audit of cities, apartments, the strategy. You tell us: “Okay, not OK”. You make corrections for us, and afterward, this is where our service will start, where every week, we will go and study the performance of the assets. There is a revenue manager in my team who is assigned to your company, and we send you a detailed report with the performance of the apartments, our analysis of risks, opportunities, and the actions that we recommend putting in place to continue. to increase the turnover of apartments. So that’s our job. We are in constant contact with our customers. We really join the team of the company's manager. To subscribe to our services, you have to make an appointment with me, so that we can talk about it, so that I can make sure that what we are doing will really help you, that you are at the right time, too. , to allow us to join your team. So I'll post the link. In fact, I will put the link to make an appointment with me. You will see, there are several possibilities, and we talk about your project or your company with great pleasure. I recommend having at least four properties, but you can go up to 150 – 200 properties without problem. So there you have it. So, I have to remember to put the link below.
− Christian said to me: “a collaboration between 5 and 10% of turnover, is that correct?
So, here, we come back to the question of the city manager. It's impossible to answer you about that. It will really depend on each person. I think there is no absolute truth. On the other hand, the fact that you propose something in percentage seems really fair play to me, because it obviously helps motivate the person to function properly, to have good grades, and as a result, the figure d business is in order. So I find that rather fair play. Now, the percentage, in my opinion, depends on each person. Small reminder: in a commercial negotiation, the first to give a price is always the one who loses. Which means that if you are in this position of having found a potential city manager, that you ask him what your expectations are, overall, it is better that you make sure to ask the person opposite for a price, rather that you give yourself a price first. Here's the little negotiation tip to do.
− Mélanie tells me: “Off topic: thank you for the previous Live. This will be my next communication.”
Great. Please. Awesome. I'm always happy to read that the Lives help you, and that it allows you to have ideas, to think of new things. Frankly, it's a real motivation for me, because I think you can imagine, doing Lives per week is a fairly significant time commitment for me. But I really believe in the benefits of being together, of talking to you about all these subjects, and of being able to meet again. So thank you Mélanie for saying that. Frankly, it's a real engine, clearly.
− Christian said to me: “Yes, thank you.”
Great, so my answer about the city manager helped you.
− “For a Channel manager, do you recommend Beds24 or SuperHote?”
I talked a lot with Mathieu from SuperHote on the revenue management part of the Channel manager. I'm only going to talk about the revenue management part, so pricing, optimization of turnover. I gave Mathieu a certain amount of feedback on elements and blocks that could be interesting to add to the Channel manager. I believe that at this stage, these are not things that have been able to be put in place, but I have no doubt that it is something that can be put in place soon. So for now, there are just a few things that I think are a shame that SuperHote doesn't currently have. But Mathieu is on it, and it will most likely be implemented quickly. For now, these are things that can be found exhaustively in Beds24.
That's it for the questions. Well, look, I think I've answered all the questions. Thank you for being with me once again today for this Live. I hope this can help you. I tell you, to get together, don't hesitate to subscribe to the YouTube channel with the little bell, because it alerts you when you arrive live. So, it's always nice. I really appreciate being able to be with you, so thank you again for taking the time to join me on Tuesday and Thursday at noon. I'm going to publish another video on Sunday, which is a recorded video, let's say. This is a tape of an interview with a partner or a client. So, don't hesitate to find me also Sunday on the YouTube channel, probably Sunday evening, in that network. Sometimes I'm a little late. Sometimes it's early afternoon, sometimes it's evening. But in any case, on Sunday there will be a new video published on the channel. And then if you want to receive the bonus of the six mistakes not to make when you make your prices for your seasonal rental, then join our Facebook group. As soon as our registration is validated, we receive this bonus by email, which, I have no doubt, will continue to help you. So. I wish you a very good day, a very good weekend in advance, and I'll see you next Tuesday at noon live again. There you go, have a very good day.