A reader wrote recently saying he was troubled about how to set rental rates, so let’s talk about that today.
Whether you’re an old hand at renting a vacation property or are just getting started, or maybe thinking about getting into this business, rate setting is not one of the easiest or most pleasant parts of the job. You always wonder whether you’ve set the proper rate for the vacation rental market or for your area, whether your rate is too high and is chasing potential renters away or, on the other side of things, that they are too low and you might be leaving good money on the table.
Help is on the way! Take a look at rentforyourvacation.com’s new rate calculator – I like the way our team set this up, the instructions are really simple. You just plug in the numbers the tool asks for and the calculator figures out what rate you should be charging to cover your expenses and make a decent profit.
Before you try out the tool, you need to pull your invoices together for expenses such as mortgage, heating, electricity, taxes, renovations, maintenance and so on.
Give the rental rate calculator a try and let me know what you think! We’ll talk more about it.
To come up with the most optimal rate(s), you need to gain an understanding of the market in your particular area. Is it a seasonal or year-round market? What’s the peak season? What rates does your competition charge (other property owners/managers, hotels)? Do you want to charge additional fees – if so, is it best to include them in your rate or present them as additional fees? You’ll also have to fix your minimum stay. I can address these issues soon.
In the meantime, if you want to have more detailed information and tips on how to use the calculator, I recommend that you read Rent For Your Vacation’s newsletter on the subject.
Tags: home owner, prices, rental, rental rates, tourism, vacation, vacation rental, vacation rentals by owner
