Policy: Owner Policy – Short Term – Owners Switching Between Management Models (I.e., Full Management to Booking Agent & Vice Versa)

Company Position: 

Property Providers vision is to “Help People Live Better” through being Sydney’s most flexible residential rental company. This vision is driven by 3 core values: Passion, Performance and Partnership. This policy has been created based on our belief in our guiding principle, that all great long-term partnerships have a solid foundation of mutual respect, mutual reward, mutual investment, and mutual risk. 

Document Purpose: 

The purpose of this document is to clearly communicate the company’s policy as it relates to owners wanting to switch their management offering from Full Management to Booking Agent or Vice Versa during their contract period. 

Background: 

Property Providers prides itself on being ‘Sydney’s most flexible residential rental agency’. To demonstrate our mutual respect and investment we can provide our owner partners the opportunity, where appropriate, to change management models from full management to booking agent, or vice versa during their contract term when circumstances arise that may require this.  

We offer 2 different management types in the short-term rental sphere: Full Management or Booking Agent.  

Full Management:  

Our Full Management Agreement is for owners who want to be “hands off” when it comes to managing their property.  Under the Full Management Agreement Property Providers handles everything associated with renting and running the property including but not limited to, booking, marketing, guest relations, housekeeping, linen, repairs, maintenance, etc. Owners will have no communication with guests and their direct contact is us, their property manager.  

Booking Agent: 

Our Booking Agent Agreement is for owners who want to be “hands on” in managing their property.  They want to be non-exclusive and care for their property and guests directly.  In these cases, the function of the booking agent (Property Providers) is in a sales, marketing, and finance capacity only.  In simple terms, owners benefit from our large portfolio, channel management coverage and our strength in lead to sales conversion rate.  We source leads, qualify guest’s suitability, and convert/ commercialise them into bookings for the owner.  The owner then takes responsibility for all the property management and operational components of executing the booking, including but NOT limited to:  

  • The entirety of the guest experience post payment confirmation transaction. 
  • All coordination, operations and property management including the repairs, maintenance, cleaning, linen, and housekeeping. 
  • Arranging of pre arrival communication including welcoming the guests and/or access to the property.
  • Managing any questions, concerns, and all guest services from the onset of payment until after the guest security deposit return is finalised. 
  • Report on return of security deposit with the guest and manage any communication in relation to deductions. (Property Providers executes the return payment upon instruction from the owner). 

In short, we acquire the customer, transact, and then pass the customer to the owner for the stay fulfilment.   The owner then advises us of any deductions to the security deposit if required (after agreeing to them with the guest) and we transfer it back to the customer.  Please Note: for properties/owners where we are a booking agent, negotiating or mediating security deposit disputes is not in the scope; We are to be notified of any deductions within 7 working days or full security deposit will be returned to the guest. 

In both cases, it is important to highlight that Property Providers is just an agency.  This means the stay or contract is between the owner and the guest.  The agency’s role is to facilitate the agreement (a license) between both parties.

  

Policy Objectives:

  1. To be clear, concise, consistent, and upfront regarding what the company’s position is in relation to owners changing their management agreement from Full Management (FM) to Booking Agent (BA) or BA to FM prior to the contract renewal date.
  2. To support the company’s guiding principal that all long-term relationships have a foundation of mutual respect, mutual reward, mutual investment, and mutual risk. 
  3. To effectively manage the facilitation/implementation of fair and balanced solutions to all parties involved.
  4. To implement a consistent and fair framework that balances the tenant/guest experience and our fiduciary duty that we have to you, the property owner, in managing the transaction between all parties while minimising inconvenience, cost and risk. 

Agency Policy:

  • Owners who wish to switch management models must advise Property Providers in writing no less then 30 days prior to intending to switch.  
  • Should an in-house booking be present, and the end date of the booking over 30 days away, the owner must advise that the switch will be effective from the end of the in-house booking (I.e. a switch cannot take place halfway during an occupancy).  
  • Should a forward booking be present and taking place within the 30 day period this will be executed under the original management terms.  
  • Should a forward booking be present with a start date after the 30 day notice period, this will take place under the new management terms.  
  • An owner cannot provide 30 days notice when a booking offer is already being negotiated to change the terms during the negotiation.  
  • Under no circumstances can a management model be changed during an in house booking.  
  • For the Management model to be switched, the owner must commit to the chosen model for a minimum period of 6 months to make it worthwhile conducting the changeover. (I.e., A property cannot flip back and forth constantly between booking, with so many moving parts this can lead to confusion and conflict esp. around housekeeping & linen obligations.) 
  • The annual marketing fee will still apply. It is standard across both management options. Upon renewal of the contract anniversary date the annual marketing fee will re-apply.  
  • Should a switch be agreed within the outlined notice period, a new management agreement will be required to be signed to reflect the new terms.   
  • Should an owner request to switch to a booking agent agreement, and then require Property Providers to execute services on their behalf which they are no longer obliged to do under the new agreement, labour rates will apply to any services provided.  ( I.e. should an owner elect a booking agent arrangement and then require Property Providers to organise a upholstery clean after their guest’s stay, labour rates will apply for the labour taken for Property Providers to organise and schedule the clean with their trade, as well as the hard costs of the clean itself).

Operational Mechanics:

  • A switching fee of 250.00 + GST will be charged to the existing owners’ ledger at the time of being advised/notified that the management model is changed.
  • When transferring a property’s management model, Property Providers requires the property to be vacant for a minimum of 1 week from the end of the existing in-house rental to ensure a smooth and professional transition (i.e., linen pickup/transfer, maintenance, keys return, etc).
  • At the time of contract change the owner/agency will be accountable for a number of responsibilities below: 
    • If switching from FM to BA: The owner is required to conduct a guest experience review of their property upon changeover to ensure that they are aware of the standards required to maintain the property’s quality and meet guest expectations in adherence with the advertised star rating. The owner is expected to conduct a guest experience review once every quarter to maintain property quality and customer expectations. Further information regarding conducting the guest experience as a booking agent can be found here.   
    • If switching from BA to FM: If Property Providers are taking over the full management of a property, we will conduct a guest experience review and onsite inspection and provide feedback to the owner if maintenance or touch ups are required to prepare for and ensure the best guest experience under full management.  
  • Owners understand that their short term rental log in, account and listing will remain the same. It is not possible to provide a new ledger or separate account for the different models once switched. I.e. Your EOFY statement will be a merge of both management models.  
  • Please advise at time of switching if you require Property Providers to manage your bills, rates etc. If we do not so already.  
  • Before requesting a management switch, it is the owner’s full responsibility to understand the idiosyncratic and requirements for the new model they are wishing to choose.  

Rationale:

Property Providers positioning is to be “Sydney’s Most Flexible Residential Rental Agency.”  In this regard, we want to be fair to both owners and occupants alike.  We have found that most people are reasonable, responsible, and respectful.   

Switching between management models is more complex than it may initially seem. We are happy to provide our owners this option as part of our flexible service offering but need to manage it appropriately to ensure the best results for all parties involved.   

We feel the above policy supports our company value of partnership. We feel it is important to collaborate to effectively drive results.  

Time is required to do this properly.  Property Provider’s core purpose is to “Help People Live Better;” we believe that it is important to give our staff, partners, and owners reasonable preparation time to do their respective jobs to execute a smooth Management model switch.  

Effective Date:  This policy is effective March 1st 2022

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