Are you having trouble setting nightly rates, but desire to earn maximum rental income on your investment property? This easy to follow guide will help you get started in the right direction for higher rental income potential.
Know your vacation rental market
Knowing your market is extremely important if you want to achieve maximum occupancy. Ask yourself these key questions about your vacation rental property:
- What is the low, mid, and high price your closest competitors are using? *Tip* check www.homeaway.com or AirBnB for competitor pricing
- How does your property stack up in terms of furniture, interior decoration, amenities, location, etc. to your closest neighbors?
- What makes your property stand out in your market?
- How does your service differ?
- What management companies if any are your competitors using?
After studying your vacation rental market, you are ready to…
Set Vacation Rental Rates by Season
Setting your vacation rental rates properly by low, mid, high, and peak season will allow you to attract the attention of online bookers. Your property will be marketing at an appropriate rate and get lots of attention, and that means lots of rental income. What if you mess this up? Imagine having a high season rate during mid season – NO ONE WILL BOOK YOUR PROPERTY.
Appropriately setting your rates by the season will help you drive occupancy.
Want to know when low, mid, high, and peak season is for your market? Fill out the form below for a free guide on setting rates based on season.
Nightly minimum for vacation rentals
An often missed, but critical detail in vacation rental pricing is setting nightly minimums. Can you imagine blocking off a very profitable holiday week with a 2 night booking? For example, a guest booking 25 and 26 of December only. They are blocking a very excellent opportunity to book 2 weeks or more for a guest who wants to enjoy your home for holiday over the course of two weeks. In dollars, you may be losing $2000 or more dollars a booking in lost revenue by setting nightly minimums too low.
On the flip side, if you set nightly minimums too high – you are losing valuable short bookings that can quickly fill up an empty calendar.
How to avoid vacation rental pricing mistakes
Avoiding costly mistakes is critical to running a profitable vacation rental business. Want to learn how to set your rates properly? Fill out the form below to receive your FREE pricing guide from Vacation Home Help. In the guide you will learn: how to set rates by season, choosing the right price, setting the right nightly minimums, and much much more.
