Scroll down for a handy infographic with top tips to set your vacation rental rates!
Infographic: Top tips to set your vacation rental rates
Setting the right rates for your vacation rentals can be a bit of a challenge. How can you secure bookings while maximizing profit? Finding the right balance between flexibility for your guests and an accurate estimation of your costs can feel like tricky business. In our infographic, you can easily check out the top tips to set the best rates for your vacation rental. Here are the four steps:
CHECK THE COMPETITION
Search for similar short-term rentals in your area on the major vacation rental websites. Take a look at what they are setting as nightly, weekly and monthly rates for their vacation rental. Check which dates these competitors have as high and low season. Search for their calendars to see how many days they usually book and how far in advance.
LOOK AT YOUR EXPENSES
To calculate your vacation rental rates as well as the amount of days you will need to be booked in order to make a profit, start by estimating your expenses. Include taxes, mortgage, utilities, insurance, the possible costs of ordinary repairs, emergency repairs and renovations. Your expenses may also include marketing and administration costs, permits or licenses, cleaning services, etc.
ADJUST POSSIBLE EXTRA FEES
Some property owners transfer some expenses such as taxes, cleaning, and sometimes utilities to renters. For example, you may want to include a fee for air conditioning or for pool heating because these will add to the cost of your utilities.
OFFER WEEKLY DISCOUNTS
When setting your rates, you could set the weekly rate as the nightly rate multiplied by 5 or 6. This encourages travellers to book a full week because they will receive a slight discount. It is also usual to charge slightly more for weekend nights.