How to Set the Best Price for Your Vacation Rentals

Choosing the right price for your vacation rental can be a bit challenging, especially if you're new to this. If you don't get it right, you might not make as much money as you could, or you may get guests who aren't the best fit for your place. If you price it too high, your home could be empty when everyone wants to travel, and people who do stay may feel like it’s too expensive. That could lead to poor reviews.

Why You Need a Good Plan for Pricing

It's not just about picking any price. To do well in the vacation rental business, you should have a plan for how to set your prices. This plan should take into account things like high travel seasons, what's going on in the market, and other factors that might make people want to stay at your place. By keeping an eye on the market, you can make sure your price is just right.

Six Tips to Make Your Rental the Best

• Know the Costs: If you're new to this, you might not realize how many bills come with owning a rental property. There are the obvious ones like the mortgage, utility bills, and taxes. But there are other costs, like cleaning, unexpected repairs, and even keeping the yard nice. Furniture and kitchen items can also add up. You can look at websites and social media accounts that give you ideas on how to save money on these things.
• Research the Market: Look online and in newspapers to see what other rentals are charging. Compare your place to others that have similar features and are in similar locations. This helps you figure out a good price for your property.
• Be Special: You can either set a really good price to attract guests and get good reviews, or you can offer something extra that allows you to charge a bit more. This could be services like helping guests with their plans or allowing late check-ins.
• Use High-Travel Times: When lots of people are looking to travel, you can usually charge a bit more. Some people even charge a week’s rent that is as much as they pay for their mortgage for a whole month! You can also offer discounts just before and after these busy times to keep people booking.
• Plan for Empty Times: It's rare to have guests every single day. Make sure to plan for some days when the property might be empty, even in busy seasons.
• Use Smart Pricing Tools:There are computer programs like PriceLabs and Beyond that help you set smart prices. These tools can change prices based on things like how many other places are available and how many nights you have booked. This is really helpful for times when not many people are traveling.
• Offer Different Prices: You can charge different amounts depending on whether it's a weekday or weekend, or if someone wants to stay for a long time. This could attract people like remote workers who want to stay longer.
• Deals and Discounts: Special offers can get people to book your place, but make sure you’re still making enough money.
• Rewards for Coming Back: It's usually easier to keep a guest coming back than to find a new one. Think about offering special prices for people who have stayed with you before.

Keep Trying New Things

The perfect price today might not be the perfect price tomorrow. You should keep checking and making changes to find what works best for your rental property. This will help you make more money and keep your guests happy.

Want to know how much you could make? Click here for a free estimate, or contact us for more information!