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Owners usually outsource part of the management of their vacation rentals or serviced apartment lettings to a property management company. By doing this, they hope to have full transparency around the finances relating to guest bookings and expenses related to the property. But what is the process? Usually, most co-hosts use Excel spreadsheets to gather and present information regarding the income produced from bookings. They also use these sheets for any booking-related expenses, as well as other expenses that are undertaken on behalf of the owner. This is very time consuming and prone to error, so as a property owner you need to put far too much energy and time into getting this done. Also, using an employee for this task will also eat into the bottom-line. In general, you should do it only once a month. These processes are bound to be prone to errors and even well-intentioned hosts can be made out to be skimming by owners if they spot an unintended mistake.
At the same time, as important as it is to hosts to understand their month-on-month profitability, due to the immense work required to work this out correctly in real time, most property management companies rely on cash-flow as an indicator of profits. This situation can cause so many problems regarding logging the expenses. Due to payments being frequently received prior to the guest’s departure, this gives a false sense of profitability. Companies seeing erroneous reports of their profits can potentially make decisions that could result in a disaster for their business. This situation frequently leads Airbnb hosting companies to expand too quickly. And in the end, they may not be able to cover their costs when they hit a weak month. This causes a great deal of stress and the need to revisit a new strategy in the hopes you are now in line with the new reports.
How can Zeevou's Profit Analysis Help?
We think that Zeevou has the best solution for the most accurate result regarding your profits and expenses. Our company has developed an advanced system of calculating profits for both hosts and investors (leaseholders/owners using a co-host to manage their property) to authorize the money they receive and use within their property management business. Property managers can specify, in detail, how much they charge each owner. And whether this charging is before the deduction of costs such as channel commissions and housekeeping.
Moreover, information regarding channel commissions is pulled from channels where available. For other sources of bookings, Zeevou Hosts can specify what commission level each agent is charging them. Zeevou also takes into account a card processing fee for card payments when working out the margin for each booking.
Calculating the profits of guests who stay longer can also become a problem. Zeevou takes the burden off your shoulder and offers you the solution. The income from each booking is then split by month depending on how many nights fall in each calendar month. This allows profits from longer bookings or bookings that span more than one month from one month to the other to be calculated correctly and not to skew figures artificially.
Zeevou’s Profit Analysis also takes into account profits made from selling add-ons. By deducting the sales price from the purchase cost for each additional product or service that is sold to guests you can have a clear observation and understanding of this profit. Margins made from add-ons and bookings are allocated to the host and investor. Any expenses logged in the system are deducted from the corresponding party, allowing the real profit of the host and the investor to be calculated.
Hosts can get an overview of their month’s performance. You will be able to do this by exporting a report, directly from Zeevou, of the profit for each deal, while investors have access to viewing the profit from all their properties. These profits will be available in a separate report in the owner portal. You can decide to display or hide guest details for each owner. This allows hosts to provide a fully transparent service, and to be able to optimise earnings for themselves and their clients.
Using Zeevou’s new feature called Profit Analysis, you can easily solve the difficulty of managing and organizing your expenses and profits. Zervou was created to help you, as a property owner, to find the easiest solution to your problem. Profit Analysis allows you to allocate the minimum resources such as time, money and energy to deal with this aspect of your books.