The Real “Game of Homes”

Mastering the Game: How a Welsh agency excels in Short-Term Rentals.

I know this is an old title line in short-term rentals, but it holds water in more ways than one! The new challenges all individuals and organisations face in short-term rentals beg the question of professional management agencies' need and capacity to adapt to a post-COVID eco-system. Below, we'd like to present 12 months of activity for one company and what they have successfully addressed, but first, let's focus on setting the scene.

The Good Old Days

Many of you may have never heard of Anglesey, an island off the North Wales coast. Visitors have flocked here yearly to experience the island life, in and out of season.?

Anglesey's proximity to Snowdonia National Park makes it a popular and mature holiday market with a loyal following. It's no surprise that the sleepy cottage industry of old has, like many places, seen a surge of short-term rentals to support the increased demand for travel and new experiences. Also, the pre-Covid low interest rates and an ageing population have witnessed second home purchases as boltholes and pension investments.

The Future

This boom in the short-term industry has naturally attracted attention at both local and national levels, and it has witnessed moves to see authority governance. Scotland has introduced an onerous licensing scheme, and England and Wales are heading toward registration and ensuring property compliance. This latter move is welcomed to remove bad actors but requires administration and process knowledge. There has been the introduction of elevated minimum days requiring properties to be let and occupied, which can be challenging to meet in a seasonal destination. Covid pushed labour prices up, and the economic challenges ensured it remains that way, accelerated by the new government's labour policies.

Have we met “Peak Rentals” in Anglesey or other UK destinations with oversupply? No one is sure yet,? but the increased volume opportunity means travellers can book later and with a broader choice. There has been increased travel abroad in 2024, especially sun-drenched short-haul and cheap long-distance destinations, and the combined pressures are a red flag.

The short-term cottage industry is now a battleground increasingly driven by property quality, pricing, technology, shorter booking windows and shorter stays.

Short Term Rentals is a specialist business in 2025.

There was a time when anyone could rent a home. Guest expectations were low; many brought their linen and towels, and coin meters were used for electricity. Amenities were what you found in hotels, not rentals. Nowadays, rentals need to be up to hotel standards with better amenities, greater space, lower prices, and availability 24/7/365.

Individuals can succeed in their micro business with sufficient time, energy and skills. Still, many soon realise that cleaning, laundry, maintenance, call-outs, pricing, guest liaison, complaint handling, websites, finance and the endless stream of minor but time-consuming elements can damage their health! Managing agents soon become necessary in this situation, and sourcing one is a priority.?

An example is a business we have become involved in. They have met the increasing challenges and are laying the foundations for the next 10 years.?

Anglesey Holiday Lettings (AHL)

This company has been trading for several years and has approximately 100 properties. Its underlying ethos is owner support and guest satisfaction, which is often a challenging balance.

Anglesey Holidays has had to address every element of its business over the last 12 months in the face of often unfair and ill-thought-out regulation and market forces. We have noted the main focus below; however, each element could be worth a few pages.

It all starts at the top!

First, a few words on the man in charge: Jamie Miles This gentleman was a Regimental Sergeant Major in the Royal Marines for many years, a position that few ever hold. This may tell you something about the capacity to deliver on time, respect for family and staff, and how to deal with challenging suppliers and tradesmen.?

Unknown to many, Jamie has another claim to fame, which he hides under his bushel and is embarrassed to mention.? He was the military advisor to the "Game of Thrones" series. Hence, managing a Game of Homes comes naturally—for the man in charge below.

2024 Activity and Preparation

Staff & Culture: This needs to be addressed in all small businesses, especially ones that never sleep. AHL is a staff-focused business that understands the importance of mental health challenges, the need for space, and the need for contribution, involvement, and reward. Developing a true team culture is essential in all battles, and STRs often seem this challenging!

Distribution: With the major Online Travel Agents pushing hard into this space, these companies must be managed carefully to avoid their desire to offer their guests (that is, their opinion) the lowest prices, shortest stays and free cancellations. This also means a focus on the AHL brand and website:-

Website and brand development:? Being hyperlocal has advantages over the major platforms, allowing AHL more opportunities to promote homes and personally engage with prospective guests. AHL is rebranding to match its elevated approach to property, owner and guest services. To be launched in early 2025, this significant investment is designed to underpin owners' continual investment in their properties. Launching a new website itself comes with many SEO and booking flow challenges, but it is necessary every few years to keep abreast of all the changes in search, display, guest web use and more.

Pricing:?Oversupply and under demand, the need for instant booking, changing weather conditions, events, promotions, and competitors means being on the ball 24/7. Dynamic pricing tools are not foolproof, and the investment in human capital for revenue management has become necessary. Balancing income and occupancy with mixed stay durations to match the minimum 182-day requirements is a key part of the strategy.

Guest Services: Guest services are a very undervalued part of a rental business. They are a hyper-important part of a successful hospitality company. A single guest can damage a reputation through an unnecessary review, and then online algorithms can reduce promotional opportunities for the property or company. AHL invests in the people and the technology to ensure communications are on point with guests and internally to rectify issues— hospitality with a big H.

Management and Maintenance: Cleaning and laundry are aligned with maintenance and improvements, which are the bricks and mortar of the business. Unlike hotels with a single location, AHL represents properties across the Island, and all need attention daily, weekly and monthly. This is where investments in staff with technology can add efficiencies and reduce guest service challenges. AHL has complete control of its business in this aspect, unlike many who cast off their services to third parties and have invested heavily to ensure continued and improved service levels.

Central Tech Governance: The costs to run a technology stack have exploded, predominantly due to the need to elevate marketing, real-time data, guest expectations, networking all operations together, and the increased demands on financial reporting and staff management. AHL has undertaken a complete technology review in 2024 and is working on networking the new elements together. 2025 is considered an even more eventful year with increasing demands on company efficiencies, and being prepared has been a priority.

Legislation and Reporting: This affects all rentals across the UK, with changes to Health and safety, Financial reporting (DAC-7), Furnished Holiday Letting (FHL) tax rules, and potential VAT issues across Europe that may be reviewed in the UK. AHL focuses on providing up-to-date information to its owners. It has joined the appropriate organisations, such as PSACUK, and become heavily involved in manager networks and speaking at conferences.?

Owners: Rentals require owners who appreciate and understand the challenges of a responsible and stable business. Keeping owners informed and abreast of all developments, their properties financially rewarding, and keeping their assets well looked after is a priority.?

In late November this year, the company organised an “Owner Mixer,” where 75+ owners joined together in a local golf club (despite the storm conditions). Presentations, networking, and a charity raffle were all part of the event, which was super valuable for feedback and information on what a rental company does daily.

SUMMARY

Having observed AHL’s activities throughout 2024 to align with the future of holiday rentals, it is clear why so many agencies are struggling to adapt to a new tech-based and guest-dominated eco-system that expects hotel service and booking terms.?

AHL has proven that its business is continually growing and evolving, and the finely balanced owner-guest relationships are working well. Technology is adding efficiency, and staff are well respected and rewarded. The business also supports local and military charities, which is another good reason to work with this company.?

AHL is an actual “Game of Homes” where the Iron Throne is not destroyed, as shown in the image below. Jamie Miles rules as the King of Anglesey Rentals (and he will be seriously embarrassed to see this).

"Yes Consulting" is an advisor to Anglesey Holiday Lettings and is proud to be involved with such a forward-thinking and dynamic company. Content produced by Richard Vaughton