Setting the right price for your vacation rental ensures your guests are happy and likely to stay for a longer duration while you earn profit. In order to arrive at an optimal price for your vacation rental, it is important to correctly estimate the operating costs and potential profits from the rental. This will give you a better idea of a price that will take care of costs while generating profits.
Here are some tips for striking the right price for your vacation rental:
- Research: Research on the prices of vacation rentals in your area via newspapers, hearsay, online listings and other sources on the internet. While doing so, ensure that the vacation rentals you are studying offer similar amenities and are situated in a location similar to yours.
- List Your Expenses: Tabulate expenses related to your vacation rental such as cost of emergency repairs, cleaning services, landscaping, taxes, utilities, etc. Also consider larger costs like painting, roof repair, replacement of major appliances, cost of furnishings (mattresses, cooking utensils, linens, etc.) and other expenses.
- Lower Your Price: A guest has a higher probability of choosing a vacation rental that offers the same features and amenities like others in the market but at a lower price. So, study what your competitors are offering, compare it to what you have to offer and finalize a price that is slightly lower than the one prevalent in the market.
- Consider The Season: There is usually a peak season for every vacation rental, so take into account what your peak season is when determining a price. To increase profits, you can reduce prices before and after the peak season. Also consider events and holidays in your area when formulating the price.
- Offer Flexibility: Be flexible with your pricing strategy by fixing different rates for weekends and weekdays. Attract more guests during weekends by offering lower prices in the form of offers and discounts. However, when doing so, it is important to analyze the impact of the discount on your profit margin.
- Incentivize Guests: Encourage existing guests to become repeat guests by offering them special incentives when they re-visit. This can be in the form of offering special discounts and offers when they return. Weigh your options and decide whether spending on attracting a new guest or retaining an old one is economically viable.
Hiring a professional team of vacation rental managers can ease the process of pricing your rental. The Rental Management Company is a team of experienced vacation rental managers. The team helps in formulating a profitable pricing strategy and offers services including vacation rental marketing, maintenance, etc. For more details on vacation rental pricing in North Padre Island, visit 14613 S Padre Island Dr, Corpus Christi, TX – 78418 or call at (361) 949 – 9050.