|
.gif)
How do you handle inquiries from bargain hunters?
"I have had many wonderful renters, I've gotten to know them via the phone and email, and developed a relationship with them before they stay at my home. But, beware of "bargain shoppers"--people who show up in your area and search the net for last minute openings and rental bargains. Even though I gave them an incredible deal, they were the only ones who ended up being difficult and demanding." -Lori, Hawi, HI (VRBO #202684)
"My property is very unique (it's a tent) and very new (<1 month on the market). A potential renter asked if I would be interested in renting it for two days even though it was a stated 3-day holiday weekend. I had had two other inquiries for the same thing - two nights instead of three. I agreed. Her next email stated how much she loved the property but it was high for her budget and could I give her a discount.
My reply: 'Because Sinya is new on the market, the current per night rate is an introductory rate and barely covers its cost to operate. I cannot offer any further discount. Thanks again for your interest.' Thankfully, the next day I rented the property to a lovely couple for the entire weekend and didn't have to haggle one bit." -Lynn, Texas (VRBO)
"I have had another other home owner write to me asking for a discount on my 'dangling' weekend. They called 3 weeks in advance and I do not consider a weekend 'dangling' when it is that far in advance. I told them no, that I would contact them 4-5 days before, that I might get it booked and guess what — I did just that — got a six-night booking which included the 'dangling' weekend. I followed my instincts." -Owner, North Carolina.
"I ask them where they live. If they are traveling from a long distance or ask about a bargain I immediately offer to pay for their parking pass ($15 value). I don't make them beg for a bargain and I won't give my place away. I have found this to be very effective. This small gesture saves me a lot of time on the phone with bargain hunters. They are usually happy and I end up with the rental rate that I need. Another suggestion, find out what is going on with the surrounding properties. Maybe that brand new resort has just filed bankruptcy. If the bargain hunters want to stay somewhere that is Brand NEW but suspiciously cheap. At least in our case the condo development is established in PCB and won't have a chain on the door when they arrive for their vacation." -Kimberly, Panama City Beach, FL (VRBO #184083)
"I stay firm on my rates and explain that I am also affected by the increase in prices of everything. Thus, I can't afford to discount my home unless it is one week prior and still available!" -Anonymous homeowner
"The few times I have lowered my rate and rented to a bargain hunter I end up losing a lot of $$. Not only they get the discount when they book, but thay also complain about almost everything when they arrive, to try to get something out from you, maybe a free night or a credit of some sort, or they even request a credit to their creadit cards. Now I prefer to have the villa unbooked than to rent it to a potentially trouble maker." -Anonymous villa owner, Puerto Rico
"We just had a recent run-in with a 'bargain hunter.' She asked to rent our place and said if you give me a discount on a third night, I stay three. We told her that because it was a holiday weekend and we had not raised our rates that she was already getting a discount. She stayed her two nights and had more people than she said were staying, and her dog. They did a lot of sheet rock damage to our loft area (not sure what they were throwing at the walls and why) but you get the general idea. We were able to re-coupe the dog fee, even though they still lied to our property management company about us saying that the dog could stay for free. We learned our lesson from this and realized that you have to be careful of so called "bargain hunters"." -Judy, Jay Peak, VT (HomeAway #193792, VRBO #147828)
"I stay firm on my rates and hope that other Sanibel, FL condo owners will do the same. Once you start offering discounts it hurts the entire condo rental market in your area." -Anonymous condo owner
"Last minute deals are just that, last-minute. I often get folks who want last minute deals a month or two in advance and I tell them they can either book at the regular rate today or wait until 3-4 days prior for a last minute rate. Very rarely do last minute deals materialize because I've always booked at least a week or so in advance. We all benefit from that strategy." -Ella, Woodstock, NY (HomeAway #139069)
"When I receive a request for a 'discount' because they see my calendar is vacant, or will I cut them a deal if they stay longer, my reply has always been, 'I do not discount, good luck with your search." After their search has ended with no luck, they will contact me again wanting to reserve the time for the rate stated on the web page. HOLD FIRM, serious renters will make the bookings, everyone else is just looking." -David and Mary W., Isla Mujeres, Mexico (VRBO #148939)
"Always let a prospective tenant know that your rental is priced competitively, and SHOP the competition (on VRBO and the local realtors) to back up your claim and use those listings as points of reference. I will throw in a $50 parking credit if pressed and it usually seals the deal. In 2008 with the crazy gas prices we sent out $50 gift cards with the keys to offset the fuel cost. We still get lowball offers and I turn them away. The condo association and mortgage company don't want to hear that we can't pay their bills because we discounted every rental!" -Paul & Michelle, Ocean City, MD (VRBO #188601)
"We do not offer any discounts because it is not fair to the guests that have previously confirmed and booked at the full rate." -Sandy, Sanibel Island, FL, VRBO
"I send them the weblink to other properties in the area that aren't as nice, but cheaper! I also point out that our price is all-inclusive, with no add-ons and they realize that ours is very good value and are then keen to book at full price. Good guest comments about value for money also help!" -Jenny, Lauterbrunnen, Switzerland (VRBO #60199)
"I have a philosophy on bargain hunters and last-minute renters and am steering clear this season. I've found in my 8 years of doing rentals in my property that those renters tend to be harder on the property and have caused the most damage. My belief is that if you are the daring/last minute-type renter, you tend to live a little dangerously and materials things have little meaning. A great philosophy but not so great if you're writing the checks to repair the damage! So...I make all renters pay full fare but have been known to offer an annual pass to our beloved state park which has the best beach around." -Ronda, Fenwick Island, DE (VRBO #118868)
"Our house is not in a resort area. There is a ski slope nearby, but the season is relatively short. We recently had someone ask for a discount on a week's stay, which I agreed to and was glad I did, as no one else came along wanting to make a reservation, and the discount renters left the house in excellent shape. However, I only agreed to the discount as it was a whole week's booking — it's probably better to lose the odd reservation than to be constantly haggling. For this upcoming season, I plan to include tax and cleaning in the published charge — that way the renter is not put off by hearing the grand total, after looking at the pre-cleaning, pre-tax charge on the website." -June, Mercersburg, PA (Homeaway #230177, VRBO #200037)
"I hold firm on prices since my property is already discounted 35% below market value. As another owner stated, we have bills that have to be paid and we can't pay them if we give away our property. Hopefully all the owners in our resort will keep their prices firm so as not to bring prices down to nothing." -Karla, White Mountains, NH (Homeaway #143161)
"I want to thank everyone else who took the time to write in. I appreciate the encouragement. I'm in year two of my rental and have held firm on my rates but have questioned my decision. Not anymore. The one thing I did do this year was offer last year's renters a 10 % discount if they booked by April 1st. I'm taking the long view and feel it's more profitable to rebook previous renters who know the house (and its quirks)." -Tony, Union Pier, MI (Homeaway #22875, VacationRentals #39965)
"I owned and operated a large very upscale Guest House on Maui for 20 years and now I have my one rental in my beautiful Townhouse in Napili. What I learned with this life experience is that when people want to undermine my prices this is usually a red flag. Of course we all want a deal and there are respectful ways of asking for a compromise in price. I honestly have found that the most lovely and gracious guests are ones that don't expect you to compromise your integrity regarding rates. These are the people that I love having in my home and they always get way more than they pay for because they are so wonderful! Attitude is everything!" -Jewel, Napili, Maui, Hawaii (VRBO #153310)
"I politely thank them for their interest always. I tell them: a) Our resort is the #1 best location on the beach, and I'd be suspicious of ANYBODY discounting here during the high season. b)We keep our condo in 'new' condition, constantly touching up paint, replacing worn towels, cleaning carpet and tile, repairs, etc. That takes money. And last but not least, c) you usually get the quality you pay for. I subscribe to the theory that I'd rather justify the price than apologize for the quality. " -Cara, Panama City Beach, FL (Homeaway #172366, VRBO #118351)
"When they tell me that their budget is £xxx I usually respond by asking if the airline company agreed to meet their budget?" -Andrena, Florida, Homeaway
"With over 20 Villas to rent here in Pattaya, Thailand and the current political problem (more media generated than real) we get inundated with bargain hunters, the fact of the matter is they do not book. Can they call the airline and demand a deal? I don't think so! Shout out the benefits, point out the freedom and real cost per person over hotels, add the personal service — they don't want a box they want a home! Get your marketing together there are still enough clients to provide the right margins." -Paul, Thailand (Homeaway #13315, VacationRentals #37726)
"I am always firm on my rates. I'd rather have my properties be empty than occupied by bargain hunters." -JF, Wolfeboro, NH and Bartlett, NH, Homeaway
"Since an extra weekday usually doesn't cut into my ability to rent, I will turn a 3-day weekend into a 4-day weekend with the 4th day free. The free day has to be either a Tuesday or Thursday. This is only on last-minute renters. " -Brenda, South Lake Tahoe (Homeaway #177271)
"We politely refer discount travelers to inexpensive hotels in the area. We find renting in one-week increments weeds out most discount travelers. We do discount for return customers we like 25 percent off the second week, or 50 percent off the third or fourth weeks. It builds a repeat business, and they often refer like-minded friends." - Doug, Spain (HomeAway #223047)
"Gee, I feel like I'm really in the minority. We offer a competitive price and have great feedback on our home but, if the person is someone I'd want in the house - and especially if it's a couple or small group - I will give them $100 or so off. They seem to respond well to that. Rentals are slow on the Vineyard this year and I'd rather have someone in the house for a bit less than have it empty. So far we've had really terrific tenants and no problems. Everyone likes to feel they're getting a bit of a bargain." -Kathy, Martha's Vineyard, MA (HomeAway #105691)
"I find most of the 'bargain hunter/wheeler dealer' types positively offensive and illogical. It never occurs to them that your vacation home is a home and an investment and that you'd rather not rent to someone who only cares about a deal and not the quality of the property. I will use my property myself or schedule a maintenance day before I will rent it to a 'give me a deal because I deserve one' tenant." -Mary, Laie, HI (VRBO #68461)
"Bargain hunters are every where and are ever increasing in number, especially in this economy. We provide discounts through waiver of the taxes (which is basically just a discount and I still pay the tax) or the up front gratuities charged. It really makes no sense to discount your property excessively since YOU will end up paying for the guests' vacation. And where's the "cents" in that?" -Darrell, Discovery Bay, Jamaica (HomeAway #150941, VacationRentals.com #1113)
"I made the mistake of discounting to renters that even at the time I was wary about. I regretted the decision as they trashed the house repairs cost over $1500 dollars and their deposit did not cover the repairs. They had moved from the original home address and all efforts to trace them ended with a dead end. I have priced the property to be competative but do not discount following my past experience." - Mark, Orlando, FL (HomeAway #208397)
"I have been very careful to price my rentals competitively in the market. They are priced 'just right' for the kind of thoughtful and respectful renters I want in my homes. I will negoitate a little bit, like free cleaning if asked, but I will not agree to a rental rate that is too low. If someone is asking for $600/week at Troon North in Scottsdale when my rate is $1595/week, that is not the kind of renter I want. I will keep it empty than have a potential problem renter. However, sometimes I will work with the renter and give them 2 nights free in April in Scottsdale when they are looking to book 9 nights and I still have the availability. But mainly I stay close to my price." -Anna, Scottsdale, AZ and Martha's Vineyard, MA (HomeAway #126533)
“I recently had a call from a fellow in Canada who used the excuse about the 'money exchange rate.' He wanted me to lower my price from $2,000 per week to $2,000 for 2 weeks and then wanted and extra 2 days added on. I declined and made a counter offer. I will give a discount if I, after a phone conversation, get a vibe that this person is just really on a tight budget because of the economy. You can get a sense of the person when you talk to them over the phone. It's on a case by case basis. I do feel that it is not fair to the people who have paid full price to lower someone else's price too, too much though. So a small discount for someone who is having real trouble putting a vacation budget together I think is acceptable.” –Tere, Oceanside, CA (VRBO #249634)
|