 |
|
|
|
|
Hi Everyone!
Hope your January was spent answering inquires and phone calls for your vacation home. Mine certainly was!
|
| It seems that despite the current economic conditions, there are still a significant number of travelers out there looking for and booking vacation rentals.
Normally, our January newsletter is devoted to organization, because with the New Year here, it';s a great time to dump the old habits for new and improved ones. But since we have heard so much from owners concerning rates and the current economic conditions, we decided to deviate from our schedule and write some articles to assist you with determining rates.
|
 |
|
Watch next month for a newly designed Owner Community newsletter!
Happy Renting!
Christine Karpinski
|
|
|
|
Setting Rates for 2009 Pricing can be tricky. Learn how to present rates that will bring in bookings and boost your bottom line. |
|
|
|
|
|
|
|
Visit the Owner Community for more January Vacation Rental News and 100s of articles in the Vacation Rental News archive.
|
|
| Overseas, Vacation-Home Rentals Abound "The number of vacation homes available for rent in Europe and elsewhere is soaring as owners look for ways to generate revenue with their properties..." NYTimes.com 01/22/2009 |
|
All-digital TV? Please stand by "The transition to digital television next month has been hailed as the biggest advance in over-the-air TV since the advent of color, but it's shaping up as a black eye for the government and risks leaving millions of viewers without a picture..." LATimes.com 01/09/2009
|
|
1. Too low. 3-bedroom home with ocean views for $49/night. What a steal? Think again. When a home is priced unusually low, a traveler is likely to assume there is something wrong with it. Not every traveler is looking for the deal of a lifetime, especially if he or she thinks it might mean sacrificing their health, safety, or first-born.
|
|
2. Too high. 650 Sq. Ft. 1-Bedroom Apartment in Gun Barrel, TX: $9600/week.
The fact is, we know your love your vacation home, and it probably holds a lot of priceless memories for you and your family. While it might be difficult for you to put a (reasonable) price tag on your little piece of paradise, the travelers coming to your area won';t find it as difficult after comparing with other properties. You might be thinking your rates are fair for all the wonderful memories they';ll build, but your travelers might be thinking #$&^*@!
|
|
|
Just like with your text and photos, you should advertise rates that set the tone for your home. High rates could translate into high expectations, and you could be setting yourself up for guest disappointment and complaints, or turning renters away completely. The fix: Be sure to consider the size, location and amenities of other rentals in your area to set fair rates for your rental. Do your research to stay competitive, but don';t price yourself out of the market.
|
.jpg) |
3. Too confusing. 3-night minimum except the 2nd week of every month with 31 days. Last names beginning A-M, deposit = your age * number of people in your party. Last names beginning with N-Z, deposit = 12.3489% of total rental rate. The bottom line: keep it simple and straightforward. Set rates for specific dates, outline all fees, and stay organized. It will help streamline your processes (and keep your renters from questioning your sanity.)
|
|
4. Too restrictive. 1-Bedroom Condo: Minimum Off-Season Rental 7 nights, $500/night. Sure, I love spending my tropical getaway at an empty beach in 40 degree weather just as much as the next guy. But it doesn't mean I want to do it for 7 days and pay $3500. Consider lowering your minimum stays and rental rates in the off-season for those renters looking for a quick getaway at a reasonable price.
5. Too vague. From $99/night. You might think that air of mystery will reel someone in, but that “from” might actually be scaring away potential renters. If you have set a range of rates, go ahead and spell it out in your listings, and attach specific dates to your rental seasons.
6. Non-existent. Call for rates. When everyone else in your market spells out their rates, how many renters will take the time to pick up the phone and chat with you about your particulars?
|
|
7. One year-long rate. 2009: $150/ night. Sure, you might save yourself a bit of precious brainpower by keeping a consistent year-long rate, but you may be doing yourself a disservice. In reality, you could be losing out on extra income. Travelers expect to pay more for peak seasons and holidays, so these dates should have their own designated rates. It is truly worthwhile to alter your rates to take advantage of these in-demand weeks (and it will help keep those brain cells alive and kicking.)
|
|
|
8. Excessive deposit or fees. Rental Rate: $2000, Security Deposit: $2000, Cleaning Fee: $500. What is this, the White House? Most owners charge around $200 or 10% of their rental rate for a deposit, and anywhere from $75 to $150 for cleaning fees, depending on the size of the home. If you truly feel your home deserves a higher deposit or cleaning fee, be aware that this could turn away potential guests. Tip: try bundling some of these fees into your rental rates so as not to scare away fee-averse travelers.
9. Nickel & diming. $69/night plus per person fees, utility fees, amenity fees and toilet paper fees. When it comes to setting rates, renters appreciate a no-surprises approach. If you catch the eye of a traveler with an enticing rate but tack on a bunch of extra fees, chances are your potential guests will continue their search for accommodations elsewhere (and stock up on Charmin before departing).
10. Lowering too quickly. My rate is $2500 for Thanksgiving week, but since it's already March, I'll take $700. Don't slash your prices for every Joe Renter that wants an outrageous deal. Before you jump into a booking and practically give your home away, be sure to evaluate the likelihood of receiving another booking for those dates. If it's in the peak season, you should probably try to hold out. If not, try reiterating your home's amenities and overall value before you accept an insulting offer.
|
We';ve been asked by several of you to create groups for vacation rental owners on the various social networking sites. Here are the three sites that we';re currently on:
 |
 |
 |
|
What is it? A networking site for professionals where you can create an online resume, connect with current and past colleagues, and join groups to share ideas with others within your industry.
|
What is it? A site where you can reconnect with old friends, find others who share your interests, and get sucked into fun, but time-wasting applications.
|
What is it? A site where you can post updates 140 characters at a time.
|
|
Where to find us on Linkedin?
-Join our group for Vacation Rental Owners.
-Add Christine as a connection
|
Where to find us on Facebook?
-Join our group for Vacation Rental Owners.
-Add Christine as a friend
|
Where to find us on Twitter?
-Follow us @homeawayoc and get daily updates from the OC, including a tip of the day and breaking news.
|
|
Learn more: A Luddite's Guide to LinkedIn
|
Learn more: Newbie's Guide to Facebook
|
Learn more: How Twitter Works
|
|
| |
|
|
|
|
|