How to Determine Nightly & Weekly Rates for a Vacation Rental
For individuals deciding whether or not to make their second home into a vacation rental, profit is likely a major motivating factor. The projected amount of income your property will generate can help you decide if the rental business is the right choice for you. Harland Property Management, a vacation rental management company in San Diego, offers tips for how to determine appropriate and competitive rates for your vacation rental.
First, begin by researching the prices of competing rental properties in your area. There are many online property listing sites that offer free information about rental homes, apartments, beach homes and more. This will help you determine a fair price in relation to competitors. It is also important to pay attention to the size of the property, type, amenities offered and proximity to popular tourist attractions. To be competitive in the rental industry, you must realize that a property similar to yours in square footage will rent at a higher price if it also has additional amenities and a beach view.
Next, compare your property to hotels in the area. Although more difficult to compare in price because the size and amount of amenities offered, hotels are your next biggest competitor. To help you compare rates, take the amount of people that can stay in your rental at one time and see how many rooms it would take in a hotel. Multiple the number of rooms by the hotel’s nightly hotel rate. This gives you a rough estimate of cost per night which can be modified depending on amenities, additional features, location, etc.
Seasonality is also a key factor in determining rates. If your property is located in a city or area that attracts tourists year-round, you may only need one or two rates for the entire year. If your market is more seasonal, you will likely be able to charge higher rates in the peak season and discounted rates during the off season to attract renters. San Diego homeowners are fortunate to have year-round interest, with a high demand in the summer season as well.
Make the Most from Your Vacation Rental with Harland Property Management
After determining potential rental rates, homeowners can confidently decide whether or not to rent their property. If you are new to the rental industry, consider hiring a professional San Diego property management company. As Experts in the rental industry, our agents can further help with appropriate pricing,property maintenance, accounting and lease contracts. Contact Harland Property Management at 858-367-0343 to ensure that you make the most of owning a vacation rental.