Neal Cyr is an expert in pricing and revenue management with over a decade of work experience in the field. He has now co-founded Quibble, an affordable service that utilises the knowledge of experts to handle the appraising of rent and revenue management for your property. Quibble helps you maximize your revenue while you enjoy Pricing Ease of Mind.
1. What must one look for when choosing the best location for purchasing a property?
It is important to look at what drives guest and hotel night demand in the city or town. E.g. tourist attractions, convention centres, sports stadiums, colleges. Next, evaluate the seasonality of that particular market. Some markets will have huge swings in seasonal demand. Last, check what the other vacation homes in the area look like and the prices they are charging.
2. What are the top three items you can install to increase the rent of a property?
1. Install a streaming device (Google Chromecast, Amazon Fire, Apple TV) in all TVs.
2. Make sure your property has all cooking essentials and in good condition. Replace them regularly especially plastic and wood cooking utensils
ii) Pots, Pans, non-stick skillets
iii) Cooking utensils
3. A coffee station makes for great reviews.
3. What are the major problems when it comes to revenue management of a leased property?
The industry of revenue management for short-term rentals (Airbnb’s) is young. The biggest problem is that property managers have been setting prices based only on what the nearby competitors are doing. Quibble entered the market to help property owners set better prices by using better data sources.
4. How does one combat seasonality when renting out a holiday home?
The only way to combat the effects of seasonality is to accurately forecast the seasonal demand patterns. Once a manager has the demand pattern they can accurately price the property, which allows them to maximize their rental income. Seasonal patterns will change over time, so forecasting this is an ongoing process.
5. How can you attract the guests that you want?
There are three simple ways to attract guests: competitive pricing, great pictures, and great reviews. Airbnb’s search algorithm displays properties based primarily on price and reviews. So to be relevant in the search, these things must be optimized.
6. What tax benefits can you gain from leasing your property?
In the US you can deduct property depreciation if you own it.
7. How does property hedge against inflation and why does this lead to it being a good investment?
Being invested in real estate helps you depend less on currency (cash) appreciation. Historically real estate investments have shown to increase and value and combat currency inflation.
8. Are there anyways to pre-empt a possible neighbourhood decline?
Keep an eye on local regulation. Short-term rentals are here to stay. This was made pretty clear by the recent Airbnb IPO. But, local markets have the authority to restrict this potential which has a negative impact on the neighbourhood.
9. With interest rates nearing an all-time low is now the best time to get into the property market?
If you have a home that is only used a couple times each year, why not earn a bit of money off it. Mr Cyr and his team will do your revenue management for a short-term rental or if vacation rentals are more your speed, they will handle it. This can all be done at an affordable price ensuring your profits are as high as possible. Go to Quibble if you are ready to have your cake and eat it too!