Holiday Rental Issues real estate agents charges

Re Holiday Rental

It has recently come to my notice that when listing a holiday rental property through a real estate agency the agencies or many of them outsource the listings through Airbnb and Stayz etc.I expect this also happens when the property manager controls the holiday rentals in a high rise apartment block

Airbnb charge the guest a booking fee and cleaning fee which normally goes to the owner but in this case the real estate agency is the client so the fees would go to the agency.

The real estate agency charges their clients ( the owners) a commission plus cleaning fee so in fact the agency is getting paid a cleaning fee by the guest plus also charging the owners a cleaning fee. The agency would also receive a booking fee from Airbnb and also charge the owner’s commission.

The guest then in fact is paying a lot more through booking through AirBnB than directly with the agency. The agency is also benefiting by being paid twice for cleaning plus charging owners commission and also receiving a fee from AirBnB.

The real estate agency does not disclose these details to the owners and the owners are unaware if the bookings were made directly with the agency or not.

The agents should be making full disclosure to their clients, the owners.

I suggest that Choice might investigate this and see if it is wide spread in the property holiday rental market.

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Hi there. It was recently brought to my attention that the property we let out through our managing agent is also advertised at a hugely higher daily rate on Stayz Home and Away. I queried the agent whom I trust pretty much and was encouraged by him to let everybody know to book through the original property link. It sounded to me as though companies are being bought out so that it is one big monopoly and pressure is being put on small players. He now has to provide photos of very high resolution and if they don’t like your photos, Stayz won’t put them up. Stayz seems to get a big cut from everyone. My agent thinks that people who are time poor will pay those prices rather than research however, it seems to me that it would be easy to be put off by the high prices.
Importantly, the agency has to send back a remittance to Stayz after the guest has stayed so the agency doesn’t get to keep the extra money. I am sure someone else could explain it much better than me.
I know I am locked out of my own property right now due to state border closures so will holiday elsewhere and will definitely not be using Stayz. If I look there and find something, I will be dealing with the property source for a much better rate. All consumers should be made aware of this.

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With Stayz, the person advertising the property nominates the rate for accommodation. I would be asking the agent what rate they will receive for the property on Stayz as I suspect that they may be short changing you (charging the guests one rate and telling you a different one). The way Stayz works is that generally the payment is made to Stayz and the person advertising the property receives monies for any guest stay less the commission/compensation of Stayz (which is 5.5% of the value of the booking). If the property is on Stayz for more than 5.5% which the agent usually rents your property for, I would be asking questions.

No this isn’t the case if the photos are of the accommodation. If they are of other things, then it may be a different matter. Stayz has guidelines in relation to what photographs meet its platform requirements. These guidelines can be found here:

https://help.homeaway.com.au/articles/What-are-the-photo-guidelines

Photos taken with a smart phone or most digital cameras will meet the minimum resolution requirements, that being 1024 x 683 pixels. One doesn’t need a professional photographer to take suitable photographs. The challenge is showing enough of the rooms with the camera…we are fortunate as our smart phone as a wide angle lense which works well for our room photos.

Stayz charges 5.5% for the total value of the booking made through it. It is less than many of the main stream and well known accommodation booking websites such as Expedia.com, Booking.com, Adoga.com etc.

I am not sure what you are trying to say.

The property agent you use will nominated a bank account for Stayz to make payment to. Stayz will pay the booking amount less their commission to the property manager’s account.

This link possibly explains it better:

https://help.homeaway.com.au/articles/How-do-I-get-paid-when-using-HomeAway-Payments

I am not sure if Stay allows payment on arrival…we don’t directly use Stayz and are familiar with many others …some other booking platforms do and some don’t. If Stayz is payment on arrival, the payment is based on the booking amount for the booking made through Stayz (the amount advertised on their platform). There is no read benefit to advertise at a higher price and then charge less on arrival…as the commission will be based on the Stayz booking amount. If a guests is charged less on arrival, more commission is being paid than is necessary.

If Stayz allows pay on arrival, then the person advertising has to pay Staz commission (5.5% booking value). This is usually done on a month to month basis by booking platforms. Payment of Stayz of booking commission isn’t required when Stayz takes the payment for the booking, as they take their commission out before transferring monies for the booking to the nominated bank account (of the person advertising the property).

As outlined above, commissions for the popular accommodation platforms generally range from 10-15% and most around 12%. Possibly AirBnB is cheaper than Stayz, but its rates vary depending on a number of factors and can be around the same or less than Stayz. There are some free platforms run by some government agencies, but these are generally set up for business rather than individual rental type properties.

This PDF document from the TXA website provides a list of some alternative advertising platforms. This list in not exhaustive, but gives an indication of what is available. If you don’t use a channel manager, listing on multiple platforms can be challenging to manage…and also using lesser known platforms may be cheaper (less or zero commission), but their traffic is also likely to be less meaning you are less likely to obtain regular bookings.

Choice has also covered some of the issues with renting properties within the holiday accommodation market…

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Thanks, I clearly don’t really have a handle on it. Will look into it!

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