Estabishing a short term rental price (min 2 day stay)

Estabishing a short term rental price (min 2 day stay)

Homeowner · Swansboro, NC · Member since 2012 · 28 posts · 2 votes

I have a home which will be furnished, will have cable, will have wifi, pool table, TVs, free access to walk about a nearly 40 acre estate (horses allowed/archery hunting allowed), city park with walking paths, playground, skateboard park, soccer fields, brand new recreation center (all within walking distance). Fresh eggs and organic vegetables will be available. The house is 1.25 miles from water (charter fishing/kayaking/beaches) all available year round.

Here is a link to what I kind of think my competition is..??
Hampton Suites and Inn...about .5 miles from my rental.
https://secure3.hilton.com/en_US/hp/reservation/book.htm?execution=e1s6 which if your view shows a nightly rate of 168.37 for a family...called the family fun package.

My target with a 3/2 home is families. My rental is a little over 1900 square feet.

This is a link to the only home (this a home has 3 baths) in my town which I can find that is similar to my plan...the rate is $124 to $250. The amenities described for this home mirror what I plan to do with my rental.

Any advice on setting a price is very welcome!

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  • Investor · Austin, TX · Member since 2013 · 452 posts · 309 votes
    13y

    Setting your price is a little bit of a combination between competition and art form. I don't think we can tell you what to charge.

    That said, here are some things to keep in mind:

    - Keep your price high enough to get the clientele you want, but low enough to keep your house occupied as much as needed.
    - Remember, you're going to need to add a cleaning fee after each stay.
    - Build in enough cushion for 'operating costs.' Things get broken, especially if you're renting to active families.
    - Wherever you list your property, make the listing accurate. Nothing will kill your short term business like bad reviews and some of your best customers are your repeat customers.
    - Invest in good photos.
    - Have a good contract but make it easy to read. On my STR, I included the HOA rules and if the renter broke those rules, there was a fee. There's nothing worse than unhappy neighbors.
    - Collect and pay your city/state hotel taxes if applicable.
    - Yes VRBO seems expensive if you're just starting out, but I've found that the amount of traffic they get and the time saved not having to futz with Craigslist is worth it.
    - Get your system tight. Short term renters don't like to wait to see if they got a property. Run the rental like a hotel would. Post a calendar online and keep it up to date and accurate. Make your contract a template so you can turn it around quickly. Use PayPal to take credit cards.
    - Consider offering weekly and monthly deals. My best 'short term' renters have been business travelers.

    Hope that helps and good luck with your rental!

    Lynn

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