M2M recommends WeGuest Property Management

To improve your property management services, Moving2Madrid has handed over our property management services to one of the most important players in Spain, WeGuest. This will give you broader services at a reduced price. It’s a Win/Win situation for everyone!

Excellent news for our property management clients

Moving2Madrid is WeGuest’s largest client, so we were able to leverage our size to negotiate the best deal possible for our property owners. Working with WeGuest will give you better pricing, an increased range of services, higher quality ratings and a larger distribution channel for your rentals.

Better pricing

You will get better pricing with WeGuest two ways.

  1. You pay less for their services: WeGuest charges a flat 20% fee for property management services. This is inclusive of VAT and also includes cleaning. As you know, this is lower than what Moving2Madrid charged, and our prices were exclusive of VAT. WeGuest is able to charge lower prices due to economies of scale (you can read more about this later in this article).
  2. They are better able to optimize your rental pricing: Because WeGuest manages so many apartments, they are able to invest more in technology and resources. This allows them to dynamically optimize the price charged to rent your apartment. They have team members that constantly analyze variables such as other competitors, demand indicators, hotel, plane and train fees. Furthermore, they purchase databases that show rental supply and demand in real time. This, coupled with their proprietary historical data, allows them to refine the ideal price for each day as much as possible. You won’t leave money on the table because your apartment was under priced during periods of peak demand, or lose a rental entirely because your apartment was over priced in periods of softer demand.

Increased range of services

Because WeGuest operates on such a large scale, they are able to offer you things that we couldn’t, such as Welcome Packs and linen rental equivalent to that provided by a four star hotel. Since Moving2Madrid is WeGuest’s largest client, we were able to negotiate from a strong position. You will now receive all of the following at no additional charge:

  • Four star linen rental
  • A bathroom amenity pack with each cleaning
  • Access to an owner’s platform you can access at anytime to check your bookings
  • Key handover to guests
  • A Welcome Pack for guests, which includes a city map, tourist highlights and restaurant recommendations
  • Spotless cleaning
  • Laundry services for guests
  • Rapid response time to all messages, in multiple languages, 24/7. Quick response time is vital for Airbnb. Guests may be consulting several apartments simultaneously and, if you are able to contact them before any other host, you have the advantage.
  • Profile optimization across several different platforms.
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WeGuest will provide your rental with four-star hotel linens and other amenities.

You can expect 4 or 5 star ratings from 85% of your clients

We here at Moving2Madrid always tried to provide our clients with the highest quality property management services at the lowest possible price points. However, due to our boutique size and the changing nature of the industry, we worried we were not giving our clients the best possible service.

WeGuest has a much larger property management service than Moving2Madrid- they are the biggest player in Spain. Their size allows them to offer you a much higher quality range of services than we ever could. This is because their property management team is larger and they can invest more money in technology. In fact, 85% of their customers give WeGuest a four or five star rating for check-in and cleaning services.

Moving2Madrid CASE STUDY #1: We have been monitoring the cleaning review dashboard for 10 apartments managed by WeGuest.  Our average rating was 90% with 4 or 5 stars, and our average cleaning review was 4.6.

Your average Cleanliness rating is 4.7 stars

Moving2Madrid CASE STUDY #2: We have been monitoring the check-in and communication review dashboard for 10 apartments managed by WeGuest.  Our average rating was 90% with 4 or 5 stars.

Our last 35 Communication reviews were five stars, and our last 5 Arrival reviews were 5 stars.

We entered into this deal so our clients could take advantage of the size and scope of WeGuest’s operation. Better guest ratings and higher quality services translate into increased revenue for your property. Since these services are provided to you at a lower cost than Moving2Madrid was able to provide, your rental profit will increase.

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Another perk provided by WeGuest is a bathroom amenity pack with each cleaning.

Larger, broader distribution channel for your rental property

In addition to listing your property on Airbnb, WeGuest will list your property on the following five platforms:

  1. Booking.com
  2. Tripadvisor
  3. Wimdu
  4. HomeAway
  5. Niumba
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Listing, and optimizing, your apartment on booking.com is another brilliant feature provided by WeGuest.

Why WeGuest vs. other property management companies?

There are other property management companies that work in Spain. For example Housy, Nuba, Minty and Friendly all manage properties in Madrid. However, due to their competitors’ expensive pricing and limited services, we believe WeGuest is the best fit for Moving2Madrid clients.

  • No other company charges as little as 20% and includes VAT. Most other property management companies charge higher than 20%, exclusive of VAT. The next cheapest is Housy which charges 20%, but VAT is not included.
  • WeGuest has no minimum contract duration.
  • WeGuest does not charge hosts a penalty to stop using their property management services.
  • WeGuest neither charges hosts a deposit nor an inital set-up fee.
  • Linen rental is included in the price. Other companies, like Spain Select, require you to purchase new linens every two years.
  • WeGuest provides free luggage storage for all guests. Minty, for example, charges hosts an additional fee for this service.
  • WeGuest manages over 300 properties, located all over Spain. The only other property management company that operates throughout Spain is Friendly, but they are the most expensive property management company in the country and have pretty poor service.
  • Cleaning is included in the property managment price. Companies like Minty charge for cleaning on top of their basic property management services.

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What to expect in the future

WeGuest is rolling out a number of additional features that will improve their property management services even more. We are very excited about the installation of self check-in locks. We have been told these will be installed after 12 months, at no additional expense to owners.

In addition, WeGuest is scheduled to implement owner directed cleaning, launch a mobile app especially for apartment owners and include a greater range of amenities in the Welcome Pack (coffee service, etc).

Although these are all great changes, Moving2Madrid recognizes that all change takes a little time to get used to. If you have any questions about WeGuest, please don’t hesitate to contact us.

The fine print

WeGuest is the gold standard when it comes to Madrid property management. That said, there are some things to keep in mind when working with any property manager.

WeGuest is able to deliver a high level of quality at a relatively low cost because of their scale and standardization. Their economics are like that of a hotel chain. For example, you don’t get to choose the color of your sheets when you stay at a hotel, even if it’s the Mandarin. You get the same color sheets as everyone else in all their hotels around the globe: white. This makes it easier for them to purchase and manage inventory, clean the sheets and make the beds every day. Imagine how much it would cost if every guest chose their color of sheets upon check-in. Not to mention the extra coordination involved!

For these reasons, please keep in mind that WeGuest does not offer the following services, as they are outside the scope of their mandate:

  • Architectural services and/or refurbishment advice- you can still work with Moving2Madrid and our partner GMT for this.
  • Legal advice, including the procurement of Airbnb licenses. Read: Why Madrid is the best European city for Airbnb investment to learn more about Airbnb licenses in Madrid.
  • Specialized services such as flower requests or special linen requests.
  • Maintenance services- WeGuest will identify maintenance problems in your apartment, alert you to their existence and coordinate with a local company to help you fix them, but doing the actual maintenance is outside the area of their expertise.

FAQs

How and when do I get paid?

You get paid 24h after the guest arrives. The platforms charge the guest when they book your apartment. However, the booking is not fully confirmed until the guest pays the invoice in full. This is a very safe system for both the owners and the property management company, since no one can book without paying nor stay in the property for free.

How and when do I pay WeGuest?

Payment is made when the booking is complete. You can find the details of all your bookings on your WeGuest profile. You can also designate a payment method on your profile, so your payment to them happens automatically at completion of booking. WeGuest can issue manual invoices if you prefer.

How does it work tax-wise?

It works the same way taxes on long-term rentals work. The owner pay taxes on their net income (Airbnb rental revenue net water, internet, power bills and WeGuest management fees).

Does WeGuest provide insurance?

You can get insurance on your property two ways.

  1. Guest deposit: a deposit can be set for each booking (100-150€). If a problem arises, WeGuest will request it be paid.
  2. Airbnb insurance: Airbnb has an insurance policy up to 800,000€ for material damage done to the apartment by a guest, and up to 1,000.000€ for liability insurance.
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Working with WeGuest will give you better pricing, an increased range of services, higher quality ratings and a larger distribution channel for your rentals.

 

Posted on 2 June, 2018 by maryclare in How to invest - Costs, New ? Start Here

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