Deciding on private vacation rental rates means doing research in your local area. Your rates can evolve, they don’t have to remain static, but to get a good feel for your market here are some tips.
- Local, Local, Local—Check competitor rental rates by researching local newspapers, local hotels and local online rentals.
- Figure out your monthly costs to operate your rental. This can include cable or satellite, Internet, water, electricity, gas, trash, furnishings, maintenance and advertising.
- Take your monthly operational cost estimate and compare it to rentals in your area. Is it doable?
- Can you find comparable rentals? Furnished homes have their own niche. If you can only find monthly, unfurnished rental homes then you can use that rental rate to determine your weekly,furnished home rate. For example, a 2 bedroom, unfurnished home without utilities, rents for $900 a month in your area. You are offering utilities and furnishings including washer/dryer and full kitchen with appliances, and all cooking and flatware dishes etc. as a rule of thumb you can charge $900 a week for a similar home, or more if you have more amenities. Because you may only book 2 weekends of every month–or none—(yikes you better hire me), you’ll want to increase your nightly rental to pay for your operational costs. Depending on seasonal business, you have some leeway. If it’s as slow as molasses rent at $150 a night, if it’s the busy season you’ll increase the rent in order to make up for the slow season and stay in business.
- Like any business, getting help increases your staying power. Asking friends to evaluate your rental is helpful, but getting and listening to renters feedback is priceless.