Vacation Rental Software Support: Vacation Rental Articles
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How to Set a Rental Rate for your Vacation Rental Property
Daily? Weekly? Monthly? How can you know just how much to charge for your vacation rental property? Rental rates, like any commodity or service boils down to simple supply & demand economics. Knowing just how much to charge for your vacation rental property can be determined by a few key factors such as the area the property is located in (which will constitute demand for your rental), the size of the property (number of bathrooms, square footage, etc.), and the quality of your property (updated finishings, fixtures, age, etc.).
Step 1:
Researching rental rates in your area is the best way to guage just how much comparable homes and condos are renting for on a short term basis where your property is located. Make sure that when comparing rental rates that you're realistic with the comparables. If you have a two bedroom one bath home without a view, don't compare it to a two bedroom one bath home with a view! To find rental rates for comparison some good online resources are vrbo.com and homeaway.com.
Step 2:
Calling vacation rental owners in your area is another way to go about determining an average rental rate for your property. Most of the time, other owners are pretty helpful, and personal insight into the rental market in your area is invaluable information. Also, don't forget to price accordingly for the holiday seasons. Rates generally go up during these times in direct proportion to the increase of demand for holiday travel.
Step 3:
Don't price yourself out of the market! I've seen it time and time again where owners simply price themselves out of the market. Remember, it's better to get a few rentals then none and unless you have a castle or some other very unique and spectacular home, your best bet is to simply price your home on average with others in the area. As you begin renting your home, you'll get a good sense for the demand throughout the year in your area and you'll be able to modify your pricing accordingly the following years.
Tips & Warnings:
Don't get greedy! If you price yourself out of the market, renters won't even call you to negotiate. Be reasonable and fair, and you'll get a fairly high occupancy rate.
Beware of pricing too low. Pricing a property too low may draw in some poor rentals such as underaged kids attempting to throw a party and possibly even worse!
Daily? Weekly? Monthly? How can you know just how much to charge for your vacation rental property? Rental rates, like any commodity or service boils down to simple supply & demand economics. Knowing just how much to charge for your vacation rental property can be determined by a few key factors such as the area the property is located in (which will constitute demand for your rental), the size of the property (number of bathrooms, square footage, etc.), and the quality of your property (updated finishings, fixtures, age, etc.).
Step 1:
Researching rental rates in your area is the best way to guage just how much comparable homes and condos are renting for on a short term basis where your property is located. Make sure that when comparing rental rates that you're realistic with the comparables. If you have a two bedroom one bath home without a view, don't compare it to a two bedroom one bath home with a view! To find rental rates for comparison some good online resources are vrbo.com and homeaway.com.
Step 2:
Calling vacation rental owners in your area is another way to go about determining an average rental rate for your property. Most of the time, other owners are pretty helpful, and personal insight into the rental market in your area is invaluable information. Also, don't forget to price accordingly for the holiday seasons. Rates generally go up during these times in direct proportion to the increase of demand for holiday travel.
Step 3:
Don't price yourself out of the market! I've seen it time and time again where owners simply price themselves out of the market. Remember, it's better to get a few rentals then none and unless you have a castle or some other very unique and spectacular home, your best bet is to simply price your home on average with others in the area. As you begin renting your home, you'll get a good sense for the demand throughout the year in your area and you'll be able to modify your pricing accordingly the following years.
Tips & Warnings:
Don't get greedy! If you price yourself out of the market, renters won't even call you to negotiate. Be reasonable and fair, and you'll get a fairly high occupancy rate.
Beware of pricing too low. Pricing a property too low may draw in some poor rentals such as underaged kids attempting to throw a party and possibly even worse!