There are nearly 20 million rental properties across the United States. Is one of those yours?
If so, you might be surprised to learn that you can maximize your profits and potential by implementing a few simple steps. As your trusted Memphis, TN property management experts, we're here to make sure you're getting the most out of your investment.
Today, we're sharing five vacation rental pricing strategies to help you achieve the boost you need.
1. Adjust Prices by Demand
Is your rental property located in an area that sees peak demand during certain times of the year? From beach condos to mountain cabins, there are certain rentals that will naturally see more customers in specific seasons. If this applies to you, keep an eye on occupancy rates.
Then, consider adjusting your vacation rental fees when numbers are up, and decrease them when they drop. In addition to seasonal variations, think about upcoming events or holidays that might affect your demand, such as a music or arts festival coming to town.
2. Keep Costs Lean
One of the best ways to optimize your short-term rental pricing is to take a close look at how much your property is costing you each month. Then, look for ways to reduce those expenses as much as possible.
While you might already budget for costs like your mortgage, taxes, and utilities, it's easy to let other expenses, such as cleaning services and surprise repairs, sneak up on you. While you don't want to cut corners or sacrifice quality, it helps to keep a budget so you know where every dollar is going.
3. Monitor Your Competitors
Do you know how much nearby rental properties are going for? As a vacation host, it's important to know your local market. Otherwise, you could be leaving money on the table or pricing yourself out of a steady income.
As you compare, keep in mind any differences that exist between your property and theirs. For instance, while they might charge more than you, do they offer guests a more luxurious experience? Note these distinguishing factors and remember them as you adjust your prices.
4. Plan for Vacancies
While it would be ideal to keep your property rented all year long, this isn't always realistic, even in the most high-demand areas. Especially if you have peak seasons and valleys, factor these losses into your budget so you can adjust accordingly throughout the year.
5. Know Your Minimum Night Rate
Once you've calculated all of your expenses, you'll likely realize that you need to charge at least a certain rate to make your vacation home profitable. If you go below that number, you'll start losing money on your investment.
To avoid this, decide on a minimum per-night rate and stick to it. Though you might raise it when demand is high, try not to go below it, even when it's not.
Implement These Vacation Rental Pricing Strategies
Your property has a ton of potential, and these vacation rental pricing strategies can help you realize it. At PMI Property Management, we're here to help you maximize your earnings and set your spot up for success.
Our short-term property management experts understand the Memphis, TN market, and we know what it takes to stand out in this space. To learn more, schedule a consultation today!
