What price should you charge for your vacation rental property?

What price should you charge for your vacationAlthough it is usually best to keep your unit priced
rental property?about where other units are priced if you have a
When you begin managing your own vacationbetter unit you can often ask more. Imagine for a
rental property, one of the first questions you'llminute that you want to rent a condo at a
ask yourself is, "What price should I charge?"specific resort. Let's say that you see two units
The best way to set a price on your condo orthat look similar but when you look at the price
vacation home is to do your own research andyou notice that one is slightly more money.
compare what else is available. Search on the webChances are you'll look the page over carefully
for vacation rentals in the area your property isand try to see why. Maybe the higher priced unit
located, for example, "Hawaii Vacation Rentals"has more amenities or a better view. However if
and find a range of prices for other propertiesthe units are still basically the same, the renter will
similar to your own. If your condo is part of anaturally pick the one for less money.
larger resort complex, do some research andIf your unit is priced substantially less than other
compare what other condo owners are charging.units in the project guests often wonder what's
Take into consideration views, location, evenwrong with it? Although, some guests don't mind
location within the project. What is the generalputting up with a few problems if the price is
condition of the property? Does your condo haveright, if your unit has serious problems, you should
a basic furniture package or has it beenfix them.
substantially upgraded? Does your vacation rentalOnce you've come up with a range of rates to
or villa have air-conditioning? Does it have beachconsider, I recommend that you start your
access, a swimming pool, etc.? Is it ski-in/ski-out?advertising campaign at the lower range of prices.
How about free internet access?It's much easier to raise prices later than it is to
It is also important to realize that when peoplelower them. If you start off listing your vacation
rent directly from the owner they are expectingrental too high, you might only get a few
to get a better deal than they would get by goingrequests and you'll be wondering what's wrong: It
to a more traditional rental agency. This isis your pictures? Your ad discription? Your terms?
because an established recognizable agency mightBy the time you finally decide it's your price may
be more trusted than an individual owner that ishave forgone a lot of bookings. On the other
unknown to the guest. The guest also oftenhand, if you start a little low and find yourself
expects that the owner will offer a better dealturning away reservations, you can start
because the owner won't have to pay aincreasing your rates and measuring the affect it
commission to an agency.has on the demand for your vacation rental.
Having a slightly higher price isn't always bad: