It's a long way from Paris to Melbourne, but for Propertifolio co-founder Stephane Guerin, settling in Australia was a natural way to realize his vision of working with short-term rentals. High quality. With almost two decades already in the industry, he recognized the country's potential for expansion in the short-term rental market – and realized that 39; he could put his skills to work and help owners achieve better results.
In partnership with Stephen Grocott, Guerin created Propertifolio in Melbourne in 2017 and has since spread to Australia. Plans are underway for outreach in the wider Asia-Pacific region.
"Really, I want us to be known for providing the best service in the field of short-term rentals," says Guerin.
Why Propertifolio?
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Stephen Grocott and Stephane Guerin have joined forces to help investors maximize profits through short-term leasing
Most of Propertifolio's customers, Guerin explains, are investors or people with vacation homes. Investors are generally looking for ways to maximize their return on investment through short term rentals, rather than long term tenants. Grocott agrees, noting that short-term rental yields can be 20% or more higher overall.
"Historically, investors have tended to get better returns on short-term rentals," says Grocott. "It also tends to allow for more regular maintenance as needed and easier homeowner inspection."
Customers with vacation homes, on the other hand, generally want to use them at certain times of the year, but also want to bear some of the costs associated with these properties. Having guests in the property between their own stays also keeps the property maintained, says Guerin – leaving it empty for weeks or months means the likelihood of burglaries or maintenance
problems that go unnoticed, burglaries or maintenance problems that go unnoticed are greatly reduced.
"For many people, their vacation home is half investment, half retirement," he says. "They may not use it regularly, but it's still an asset that needs to be maintained."
Short-term rentals represent an important growth opportunity for investors. According to Statista, short-term rental income worldwide was estimated at US $ 302.9 billion in 2017. By 2022, it is expected to increase to US $ 436.9 billion. In addition, AirDNA figures suggest that the short-term rental market increased by 47% from March 2018 to February 2019.
This is also part of a larger market trend. The chain's hotels and establishments are "crunch," in the words of Grocott, by smaller suppliers who can provide an at-home experience at a lower cost. Not to mention the quality of accommodation many have.
"Truly, there has been a change from the big players," says Grocott. "But the small market matures quickly, and although it is small, it becomes semi-professional. Being able to offer a hotel / conciergestyle experience in a family environment becomes the new benchmark. Those who can achieve this successfully will be those who will truly flourish in the future. »
That said, Grocott still describes the short-term Australian market as "underdeveloped", since it still represents only a relatively small share of the real estate market. He believes that one of the main problems that tend to deter people from entering the market in the short term is the inconvenience of having to manage the property – or at least the 39; perceived inconvenience. This is where Propertifolio comes in to provide its signature service.
"Our mission is to provide customer service to customers and owners," says Grocott. "We don't do dropboxes; we meet all the guests personally. During their stay, we can be in contact as little or as much as the customers want. For example, they might need a mid-cleaning stay or access to local routes. After they leave, a property manager scans the property and provides a report to the owner to report any problems. "
Concretely, these services are provided by local personnel, who can also offer local knowledge.
"When the property manager has a lot of local knowledge, the owner and the guest are really satisfied," says Grocott. "So we are working in partnership with industry professionals to create an infrastructure that will support our business and also allow our local partners to grow in the process."
This local knowledge is a crucial aspect of Propertifolio's continued success – Guerin believes that it is an integral part of any business wishing to thrive on the property management market.
"The problem we sometimes see is that the owners do not necessarily know very well the surroundings of their properties," explains Guerin. "So we want to entice the locals and make them feel like they are part of what we do with the short term rental market."
Consultation and improvement
In addition to meeting the immediate needs of clients in terms of property management, there is a lot more going on behind the scenes. Propertifolio also offers an extensive advisory service, working with potential customers to ensure that they do everything in their power for customers and maximize their chances of being booked.
"I think it is fair to say that we are a little picky with the properties we accept to take," says Guerin. "But we still want to work with the owners to show them what kind of potential their property can have if they're ready to get the job done."
Grocott agrees. Once customers have booked the property, they'll see how great it is, but getting them through first is even more crucial, he explains.
"We have a good idea of ??what customers are looking for, so we start with the basics," says Grocott. “Painting, furnishing, decorations, ornaments – even renovations sometimes. The owners will work directly with our stylists, who can cater for a range of budgets and different styles. »
In addition, Propertifolio makes available to customers a wide variety of data, in particular suburban analyzes, average rates per night and occupancy rates. It allows them to provide customers with effective and realistic information about how their properties can be improved, as well as the likelihood of being able to attract customers effectively.
“Providing a hotel / concierge style experience in a family environment is the new benchmark. Those who can do it successfully will truly prosper ”
Guerin firmly believes that this level of technicality distinguishes between Propertifolio and ordinary real estate agents.
We are a new agile organization, so we can pivot to change if necessary. A traditional real estate agent has a lot more trouble with this. »
But technology is not the end. The most important thing, according to Guerin, is that the owner comes first.
"We are a human enterprise," says Guerin. "In the process of setting up the business, we have talked to many people who have had problems with property management companies. But we still care about the owners. Technology is one of our most powerful tools, but we don't hide behind emails. ”
