Tips For Pricing Your Vacation Rental Home

After deciding to rent (or let) your vacationso be sure to check the calendars for the areas
home, you must set your rates. There is no setwithin driving distance to get idea of what your
formula or tried-and-true method to determinepeak season should be.
your rates when you rent by owner (i.e. manageDuring the busiest months, many owners require
your own vacation home without the use of aa minimum stay of one week. During the shoulder
property manager). However, your rates willor off season, attract weekend guests by
directly affect the number of inquiries andlowering your minimum stay to 3 nights. Check
bookings that you receive from prospectiveyour area's short-term rental regulations if there is
guests. The key is not to price your vacationa mandated minimum stay.
rental too high or too low relative to the otherYour rates need to be clear and organized. Many
homes in your market.renters want to be able to determine the total
To start the process of setting your rental rates,cost for a specific week or increment of time. In
compare your home to the current short-termmarkets primarily priced in weeks, many owners
rentals in your area. Check the pricing of similarchoose a nightly rate that is 1/5th to 1/6th of
properties (i.e. condos, cabins, etc.) on majortheir weekly rate. And in markets primary priced
vacation rental portal sites, paying specificby the night, owners often multiply the nightly
attention to which amenities the vacation homesrate by 5- or 6 to determine their weekly rate.
offer and their proximity to tourist attractions.Off-season monthly rates are generally the same
What are the typical weekly or nightly rates foras one peak week (i.e. if you rent for $1500 per
similar properties? How does your home stackweek during the peak season, you'd charge $1500
up? Also, measure your pricing against that ofper month during the off-season).
hotels and property management companies inThe key to pricing your vacation rental correctly
your area.is to constantly evolve with the changing market
Next, you need to determine your peak, shoulder,conditions and to make sure that your rates are
and off seasons. Most destinations have at leastfair and consistent compared to the other
12 peak or prime weeks. The peak seasons forproperties in your region.
most markets revolve around school calendars,