Together with occupancy, pricing is the key variable to determine your revenue. And here, timing is everything!
About 60% of your potential income comes from the intrinsic value of your property, location, and amenities. The other 40% is dependent upon implementing an effective dynamic pricing strategy.
Your strategy should take into account the fluctuating demand for your property throughout the year, season, events, other properties…. And more! In order to maximize your revenue, you want to take advantage of this flexibility.
Determine your Basic Market Value
In order to get the first approach, you can estimate your property’s market value the old-fashioned way: check your neighbor’s pricing!
In the rental site, use the property search tool to look for similar properties in your area. Limit your search to listings with the number of bedrooms and the maximum number of guests that your place can accommodate. You have a starting point.
Then identify Comparable Properties. It is advisable to select five to ten properties that are most comparable in terms of size and quality. Also, focus on listings that have the most reviews, and remember that established hosts will be charging full market price.
Start playing with it!
Once reviewed the calendar for each property, you can determine the price and estimated occupancy rate for each listing. With all this information, you can start building your pricing strategy.
With an event calendar in hand, mark the peak season and increase prices then. Start playing with the night value in mid-week and weekends, until you achieve your desired occupancy and pricing gold spot.
If you want personalized advice to price your property, contact us now. We’ll be happy to give you our advice to increase your revenue.
We know that a professionally managed home will help you achieve better results in a shorter time.