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Determining Monthly Rates for Your Vacation Rental Home
A general formula you can use to determine monthly rental rates.
| One thing I have learned about the vacation rental business: There are no "absolutes" when it comes to answering questions. Every question asked will have many variables in determining an answer. As for monthly rates, here is a general formula you can use to determine monthly rental rates for long-term rentals at your vacation home. |
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For monthly rates:
- If you are quoting for a peak season that would normally rent all 4 weeks, then give NO discount. Why should you cut yourself short when you know that your vacation rental property would otherwise be booked?
- If it's an off season month, where you would rent say 2-3 of the 4 weeks, then charge 2 full weeks rent.
- If it's a low season where you wouldn't normally rent anyways, then price it at approximately 2 week's rent.
 For example:
Given that you rent your second home for $1000 a week during the peak season, $700 a week during off-peak season, and $500 a week during the low season, you can approximate the following:
- 1 month during peak season $4000
- 1 month during off-peak $1500 to $1600
- 1 month during low season $1000 to $1100
A quick note: Check with your sales tax department, for some states do not require you to collect sales tax on 30 + day rentals.
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How do you determine your rates?
"My vacation rental is in Auburn, Maine so winter is the peak season. From November to April, I charge 150% of my off season rate." - Carl S., Auburn, Maine.
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© Copyright, Christine Karpinski 2006, u.090903.af
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