Vacation Rentals 101: How To Set Rental Rates
January 30, 2012
Once you have decided to open up your home to travelers, one of the first matters of business is establishing a rental rate. There is somewhat of a science to setting the 'right' rate, and the folks at CanadaStays.com - Canada's holiday rental experts - are here to walk you through the process.
If you set your rates too high, you'll price yourself out of the market and risk losing business to competitors. If you set your rates low, you may gain an edge on competition but you'll be undermining your property's income potential. The key here is to review similar rentals in order to determine what rate is realistic.
- Go to a holiday rental website and check the rates of rentals that are similar to yours in the same or similar location
- Find out what hotels in your area are charging
It is appropriate for rates to vary over the course of the year, especially if the location of your rental has a specific peak season. Set rates higher during your peak season (i.e., winter holidays or summer vacation) and lower during your low-season in order to attract guests and fill up vacancies.
Consider how long guests are staying and set nightly, weekly and monthly rates accordingly. If guests are staying longer you can offer them a discount on the nightly rate.
Indicate exactly what your rental price includes - clarity is key and it is extremely important to give as much detail as possible right up front. Does the rate include the services of a cook or cleaner? Are there charges for additional guests? Tell travelers exactly what they're paying for.