pricing

How to Price Your Vacation Rental

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Vacation Rentals are similar to boutique hotels in the sense that there are tiers of price ranges. Most hotels fall within a 5 tier category. Imagine Motel 6 being at the bottom, Best Western, Hilton, and Marriott falling in the middle, and the W Hotel landing at the top. As you can imagine not only will the price of the Motel 6 location be far cheaper than that of the W Hotel, it will also be furnished with items you would associate with this level of expense. For instance, you wouldn’t walk into a Motel 6 room and expect to see luxury linens, soft towels, quality fabrics, and crystal chandeliers. However if you were to walk into a W Hotel room and you opened the door to a run-down mattress, rough towels, low lighting, and a chair with a broken arm, you might be furious because the cost doesn’t match the quality.

These same principles apply to vacation rentals. Whatever price you have chosen to list your property at, it will need to match the expectation associated with that price tag for your guests. If your property is in an area with several ‘Motel 6 quality’ rentals around you, then you could opt for cheaper furnishings to match your competition. However if your rental is in an area where other rentals are ‘W Hotel’ quality, you will need to match this as well if you want to keep up with the competition and not be priced out of the market. After all, who wants to pay $300 a night for a $60 a night quality? This is where a lot of home owners mis-step when turning their properties into vacation rentals. How do you know what quality looks like? Hire a professional- like me! After all, this was supposed to be a passive venture for you, you don’t need to stress over whether your sofa is ‘W Hotel quality’ or ‘Motel 6’, that’s my job! I know this industry inside and out, I can go into detail about what makes one piece of furniture worth it’s price tag in value, but all you want is passive income, right? Unless of course, you really do want to know these details, which I am happy to share with any client as well, but you most likely won’t have time to do all this research and order the furniture before your first booking (hopefully!). So all you really need to remember is that there are different tiers of price tags associated with each rental and the area it is located in. Leave the rest of the work to the professionals who will bring a higher value to your rental and make you more money in the long run!

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