Does your property rental business model have the potential to be a success? Part 4
Chalet Image – Chalet Carter
Part 4: How do you set pricing that is attractive to guests and acceptable to you?
In the last post we highlighted the importance of making your property stand out from the crowd. This post discusses how to set the right price for your rental property.
Research your costs, be aware that the local going rates for services may not be the same rate that you pay back home.
Make sure to look after the team managing your property and your guests respectfully – they are the local face of your business, and the way they set up the property and deal with any problems can make or break your holiday rental business. Your business will not work without them!
Decide on the profit margin you want to make – is the total amount viable given the weeks available to guests?
Is demand higher for some weeks than for others, or do rates and demand stay the same across the year?
Where do most of your guests come from? Are there any implications to the booking calendar (ie school holidays may differ in different territories).
Are there any events in your area that normally draw large crowds? Will your property appeal to spectators, or not?
Appraise the risks – by keeping the pricing low you may take more bookings, which will entail more overheads, more wear and tear. If pricing is high you may take fewer bookings, yet make the same as others who have more frequent, but lower priced bookings. If pricing is too high, you may miss the boat entirely.
How far in advance should you have pricing live for?
Be prepared to put in the work to monitor your enquiries, your bookings and your pricing. Be aware it may take a season or two to get the pricing spot on.
Be aware of how your property pricing compares with others locally, keep realistic about the number of weeks you might sell, and the demand that exists for those periods. Monitor pricing , enquiries, local demand and bookings, and be reactive!
How can OVO Network help?
OVO Network combine innovative technology with market knowledge and creative expertise, to make it easy and stress-free to maximise your property’s occupancy and your rental income.
Click here for more information on the benefits of working with the OVO Network, or to apply to add your property to our rental property platform. Alternatively contact our Karen from our sales team directly on email@example.com.
Here’s the whole ‘Does your property rental business model have the potential to be a success? ’ series: