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  Podcast Transcripts , Ask Christine #10: Should You Break Up the Rental Rate? (Transcript)  
 
     
Ask Christine #10: Should You Break Up the Rental Rate? (Transcript)

Christine answers a question from an owner who wants to know if it's better to charge one all-inclusive rate or to break the rental rate into parts (cleaning fee, sales tax, etc.).
 

Host, Christine Karpinski: Today's question from an owner is….

Q: "Is it better to break up rental prices into rental rates, cleaning fees, taxes, and etcetera? Or is it better to offer an all inclusive rate?"

A: Well, my answer to this sort of depends a little bit on your market. You've got to look and see what all the rest of the property owners are doing. If they all include cleaning fees and taxes in their rates then, usually, it's in your best interest to price your property the same way as the other properties.

This way when travelers are looking at various properties, they'll be able to compare apples to apples with regards to the pricing. However, as a general rule, I think it's actually better to break your rental rates up into your rental rates, your cleaning fees, your taxes.

The other thing is, a lot of tax offices like to see that you're charging sales tax and that you charge it on top of all the rates. I think if the tax departments are going through the websites, which they do sometimes, that's one of the red flags that goes up if they don't see rental rate plus tax.

So I think as a rule, I think it is usually better, as long as you're in an area where the rest of the people don't have all inclusive rates. If it goes 50/50, I would definitely do the rental rates, plus cleaning fees, plus taxes and pet fees, or whatever else you charge.

I hope you enjoyed this episode of "Ask Christine." If you have a question we would love to hear from you. Please leave a message at 512‑493‑4340.