You want to set the right rate for your online vacation rental at Cuddlynest, as you don’t want rates so high that you scare away renters, but on the other hand you don’t want rates so cheap that they wonder what is wrong with your property. Remember that in the beginning, it won’t be all about profits. You need to find that perfect price point that will bring in repeat renters, but cover your costs and give a good profit too.
It’s tricky trying to figure out the best rates in the beginning. Utilize these six tips to help you get started, but remember, you can always adjust them later if you need to.
- Compile a list of expenses. It’s important to calculate how much you think it costs for the upkeep of your rental. Consider how much electrical, cable, or internet costs, and if there are any strata/HOA fees. You may also have had to purchase new beds, linens, or furnishings. Your rental may need some expensive repairs in the future, such as roofing, new appliances, or painting. You’ll want to spread out these costs over a year or two.
- Compare the competition. If there are other rental homes on your block, see if they have comparable amenities, and what they are charging for their rentals. Note that if they have extra rooms or a view, that you won’t be able to ask the same rates for your own property rental.
- Apply higher rates at peak seasons. If you live in a city that benefits from the summer tourist season, you may be able to charge increased rates during these times, and rentals in larger cities may command higher rates during long weekends or holidays. Certain cities that have ski resorts can ask for higher rates during the Christmas and New Year’s holiday seasons.
- Plan for vacancies. You’ll need to ensure that your costs are still covered, even when you are experiencing a high vacancy rate. Even the best rentals in the most desired vacation spots don’t have 100% occupancy rates. Usually, 25% vacancy rate is on average. And if you are a vacation destination, you may have to plan for five weeks of vacancy over eighteen weeks of potential rental times.
- Experiment. When you sign up on a site such as Cuddlynest, you’ll have a chance to create a vacation property listing, and set the rates you want. If you find that you are 100% fully booked up, you may wish to increase your rates slightly to take advantage of the demand. If you aren’t getting any bookings at all, edit your listing and lower your rates. Have friends check out your listing to offer their feedback. Often, they’ll see things that you’ve missed.
Remember never to rush your listing as you want to take your time carefully writing it up, and choosing the best vacation rental rates. When you choose a site such as Cuddlynest, you’ll find it’s a lot simpler booking your vacation rental property.
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