How to Determine Rent Amount ~ Join Southern
Finding the right price for your vacation rental can be a difficult task. If you price it too high, then you may not book your property enough to cover costs. On the flip side, if you price it too low, then you risk leaving money on the table or not having enough money to cover your costs or upgrade your property over the years. If you are renting your property out on your own, then determining the rental amount will be much easier. Once you know how to determine rent amount, you’ll know what your basic costs are and what kind of money you’ll need for your “rainy day fund” as well.
Once you’ve identified your costs, you’ll need to analyze the surrounding market to make sure your expectations of rental amount meet reality. At Southern, we’ve used a multitude of strategies throughout our 25 years in business. Our most reliable source of data is our past historical rental rates. These allow us to see what guests paid in years past, what the overall occupancy was, and more.
We have also been utilizing a dynamic pricing system in tandem with our previous strategies. This pricing system takes a lot of the leg work out of researching competition and current market trends, allowing us to have more time to make adjustments that will yield you more money! This pricing system considers current occupancy, rental rates associated with competitor bookings, future occupancy to help find the optimal price for each day and week, and much more. Based on an algorithm, the pricing system will then apply suggested pricing based on these factors, with a qualified Revenue Manager overseeing and making adjustments as necessary.
Even with all of this technology and data at our fingertips, determining rental amount all comes down to what the market is giving at the time. During peak seasons where we know everyone is coming down for a beach vacation, you know you can hold out for a higher price. On the flip side, during shoulder and slower seasons where the beaches are anything but crowded, you’ll likely need to lower your expectations (and rental amount) in order to book a few reservations.
Is your property performing the way you want it to? Contact us today to learn more about our vacation rental management services!