Pricing is one of the most important aspects of your rental and your guest experience
Pricing is directly correlated with hitting your business goals for your rental property.
Whether you’re on the low or high side of the market will depend on the kind of guests you want and the kind of profit you’re looking to make on the property. Here are some strategies to help you set your initial nightly rates:
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Market research: Start by researching similar vacation rentals in your area. Search for properties with the same number of bedrooms, similar amenities, and proximity to attractions. Platforms like Airbnb, VRBO, and Booking.com are great places to start your research.
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Compare prices: Search comparable properties and consider their rates for different seasons throughout the year, weekdays versus weekends, and any annual special events that attract travelers to your property's location. This information will give you a general idea of the price range you can try with your short-term rental property.
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Your special features: Take into account the unique amenities and features of your property and location. If there are features that set your property apart from the competition, you can factor these into a more competitive pricing strategy.
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Your costs: Calculate the costs associated with running your short-term rental, including any mortgage, insurance, and property taxes you are responsible for, in addition to operational costs like cleaning, maintenance, and management fees. This will help you determine the minimum nightly rates to cover your costs.
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Seasonal rates: Based on your market research, set high and low seasons for your property based on factors like weather, local events, and tourist demand. Set different rates for each season, with higher prices during peak periods when you can commend them, and lower prices during off-peak times to encourage guests to book year-round.
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Minimum and maximum stay length: Make sure you've set your minimum and maximum stay lengths in coordination with your rates. Higher rates and a lengthy minimum stay could make your property appear artificially expensive to guests browsing.
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Promotional rates: When you're just getting started, you may want to offer a lower introductory rate to attract guests and generate positive feedback. As you gain more bookings and get a better understanding of your operating costs, you can increase your rates to match the market.
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Monitor performance: Regularly track your property's performance in terms of booking value, occupancy, and your costs. You can always adjust your pricing strategy based on your observations and any changes in your property's market.
Pricing is important, but it doesn't need to be a mystery, and with Futurestay, you can always modify your pricing at any time.
For more short-term rental pricing tips and strategies, check out the Futurestay Method.