With proximity to Indianapolis and the Wabash River, Lafayette, Indiana is a thriving place to visit. If you're a property owner there, you'll want to find ways to turn your space into a coveted vacation rental.
Read on to learn about five vacation rental pricing strategies to maximize your profits!
1. Consider the Competition
You'll need to do your homework as a vacation host. You don't want a vacation property that is very overpriced. You won't get any interest and your property will sit vacant.
On the other side of the spectrum, you don't want to undersell what you have to offer. That's why you'll need to look at comparable rentals in the area. Compare locations, amenities, and size to arrive at a fair rate.
2. Adjust Prices Seasonally
With a vacation property, demand will ebb and flow depending on the seasons. With around 85% of Americans traveling during the summer months, you can count on strong demand for a vacation property. When the weather's nice, people will want to be outside exploring all that Lafayette has to offer.
During those prime months, plan on increasing your rates. Or consider looking at annual festivals or holidays that tend to be a draw. You may want to nudge rates as much as 50% higher during prime weeks.
3. Be Open About Added Costs
What other costs are included in your total price for a rental? You can attract more guests with a transparent approach to pricing.
For instance, you may charge a cleaning fee or service charge. These small fees can help your bottom line, but they could come as a surprise to guests. Be upfront about them.
4. Look into Longterm Discounts
What if you could have stability in your short-term rental for several weeks? While you may require that guests pay for a minimum number of days, consider rewarding those who opt to stay even longer. It may sound like you're losing money doing this, but you'll actually get a better return.
This may translate to offering one free night or a 15% discount on the entire stay. A guest that stays longer means you won't need to spend as much time enticing new ones to stay in your rental.
5. Use Property Management Services
Ultimately, your best strategy is to let a professional property management service handle the heavy lifting for you. A property management service will be able to create a strong listing on platforms that generates interest. They'll also know how to set fair rates.
Property management companies can be your professional face to all guests in your rental. They can handle communication, booking, and cleaning arrangements so you can focus on bigger tasks.
Learn the Best Vacation Rental Pricing Strategies
The best vacation rental pricing strategies consider location and the competition. You'll want to raise rates during peak weeks and be open about your price structure. Additionally, enlisting the help of professional property managers can ensure your rental always has guests.
At PMI Lafayette, we make Lafayette-area property owners our top priority. Our goal is to give you the real estate expertise and polished approach to management that can help you maximize your investment. Contact us today to speak to an expert.
