Last update: Feb-2019
Nox Rentals – Rental Operations Policies
From time to time we introduce Operational Policies, which are created for the purpose of trading transparently and fairly. The nature of the services we provide sometimes put us in the centre of two very key parties; being our Partners (Property Owners) and our Guests (or sometimes Travel Agents).
During the normal course of business we need to make decisions which impact either one or the other party, which can at times lead to a negative sentiment. The aim of this page is to outline how we manage certain situations, and what our approach is in the interest of mediation and dispute settlement.
- Project Management & Maintenance during non-rental periods
- Our business is focused on providing hospitality management services to support an active rental operation.
- It is common for properties to be refurbished or closed off for maintenance for extended periods of time.
- Our team of PRO’s are primarily focused on ensuring that your house is operating optimally in and around guest bookings. They do this alongside the Hosts and Housekeepers.
- Extended maintenance and project management works can take up a very significant period of time, which has a direct impact on the service delivery to our day-to-day operations. Our PRO’s will advise our Partners if a specific project is taking up significant time, and are authorised to introduce external contractors and project managers to oversee the work through to completion, or at least until the house is “rental ready” again.
- Guest Damages and Insurance
- Much against the preconception, it is not common for guests to intentionally or maliciously damage a property.
- We manage approximately 5,000 reservations per annum, and we have no more than 2% of these resulting in a damages charge. The average charge is generally no more than about R3,000 and is mostly for deep cleaning or minor replacements and repairs of furniture.
- We do not charge guests for damages, repairs or replacements in the following instances:
- Where the damage is a result of fair usage or the property or due to wear and tear and importantly, where the cost of the repair or replacement is less than 1% of the rental value.
- The badwill created with guests often leads to negative online reviews, as well as removes any chance of return or repeat bookings to the property.
- Should you be concerned about breakages and / or damages in your property, we advise you to take out a specialised insurance solution, which is a condition of our Management Agreement. More information here.
- Winter Maintenance
- Our Summer period generally runs high occupancies. Like any asset, your property will require regular and routine maintenance, upgrades and improvements. This can be of a cosmetic or structural nature.
- We strongly advise our Partners to keep 10% of their annual income in a short-notice money market account for purposes of reinvestment.
- We conduct annual maintenance assessments between May and September, so please expect your PRO to be in contact with you with a list of recommendations. The basis for this is off the back of past guest reviews, our team’s regular inspections and current design and guest experience trends.
- Guest Supplies Management
- Nox Rentals provide everything that a guest would expect in a luxury rental property.
- We encourage our Partners to support the enjoyment of our guests by offering some additional contribution towards Welcome Packs and Guest Experiences.
- Our PRO’s will advise on what can be done to exceed guest expectations, especially where guests are paying a significant rental.
- More information and suggestions can be found here.
- Dynamic Pricing
- Nox Rentals use highly sophisticated dynamic pricing software to manage daily rates across our entire portfolio.
- The basis for our pricing strategy is to utilise market occupancy for each day for the next 365 days, and to adjust pricing depending on low, medium and high demand days. It is very similar to the airline’s pricing model.
- The software will take into account other variables when adjusting pricing such as:
- Market occupancy – the average occupancy in the market on any given day.
- Lead time – the amount of days between the enquiry being received and the arrival date. Around 80% of all our reservations have a lead time of less than 60 days, so pricing on medium and high demand days in excess of this period are adjusted upwards.
- Market size – our software will assess the movements in the size of the market. The data set is taken off both the AirBnB & Booking.com platforms of all vacation rental properties listed within a radius of your property.
- Competitor set – we will assess the pricing of similar properties to yours. We consider location; bedroom size; standard and amenities such as views, swimming pools, jacuzzis and airconditioning.
- We utilise three variables when setting a pricing strategy:
- Lowest rate – the rate at which we would like no new business under. This can be for any given day of the year, but is traditionally well above this during periods of high demand and occupancy.
- Base rate – what we believe is the property’s ideal rate; effectively a median point at which there is no excess of properties in the market nor guest demand. Our software will use this rate as a basis for adjusting either upwards or downwards depending on market conditions.
- Highest rate – effectively the rate at which we believe guests are not getting value for money. We use comparative properties to set this, and also assess other industry room rates within the hotel & guesthouse sector.
- Our revenue management team will often contact our Partners if they see flat market conditions, and suggest dropping or adjusting rates. At times we will adjust without authorisation if we believe it is in our Partner’s best interests but ultimately our objective is to achieve an annual return for you which meets your expectations.
- We assess the performance of your property daily, and it is common for rates to adjust by more than 100% in a week!
- Guest Complaints Policy
- Should we receive recurring guest complaints on a property-related issue which we have previously requested resolution on, Nox Rentals have the right to suspend marketing services until the Partner has resolved the issue.