Pricing Strategy for renting out a beach home
When you have a beach home and want to make extra income, you might decide to rent out your beach home during the times you aren’t there. Make that extra income. But, plan strategically on the rate you want to set, incidentals, hiring someone to clean up, and having the essentials to make sure the beach home is still intact after letting others into your sanctuary. Below are tips on how you can price your beach home when you rent it out.
1. Base Rate
Set a base rate. In simple terms, you are going to want to set a rate for how much you plan to charge guests to stay each night. Here are some things to take into consideration.
Comparable listing—Know what other homes are listed to rent out.
Amenities—How close are amenities to your beach home?
Size—How many people can sleep in your beach home?
Proximity to the beach.
When you know this, you can set a rate that reflects the average demand.
2. Seasonal Pricing
There are certain times people go to the beach.
During the peak of the season (summer), you can raise your prices between 30 and 60%.
If it is a shoulder season like spring or fall, you could price it at a lower base rate or at 10 to 20%.
When it is off-season, you can reduce your rates between 20 and 40%. This can motivate people to rent out your beach home during this season.
3. Weekend vs. Weekday Pricing
The price you set can be determined by whether the person is only staying on the weekend or on a weekday.
On weekends you can increase your base rate by 10 to 25%.
Weekdays can remain at your initial base rate or slightly lower it.
4. Special Events & Holidays
The times you will want to raise your rates are during the holiday season. Typically, people book rentals in advance before major events.
For instance, people may want to take a trip to the beach when school is out, festivals are in your area, concerts are on, etc.
5. Minimum Night Stays
You can even make it clear that people must stay a minimum number of nights to get a specific rate.
When peak season comes, you can require guests to select a minimum of three to seven nights.
However, if it is any other season, you may only require it to be a minimum of one or two nights.
6. Cleaning Fee
Cleaning costs can add up. You can incorporate this fee as an extra charge or include the cost in your base pay.
You’ll want to cover the supplies used to clean and the people that come to clean, wash dishes, and do the laundry.
7. Dynamic Pricing Tools
There are a ton of tools that you can use to figure out how much you should charge. Some places to consider are PriceLabs, Airbnb smart pricing, and Wheelhouse. Using these types of tools can save you a ton of time.
The goal is to work smart, not harder. Figure out how you can reduce stress for yourself. As you go through the process, you’ll feel a lot more secure in the decisions you make.
