How to calculate your night rate on Airbnb?

Question

Hello everyone,

I recently started an Airbnb on February of this year, I have a 2000 mortgage payment and I am not sure how to calculate the amount that I should be charging per night. This Airbnb is located in Royal Oak Michigan, which is a really central location to the Detroit City Area, which is why I believe is a good location. From what I have noticed this last couple of months is that the place is usually only rented on weekends. I would like to ask to you guys, what are the factors that you consider when calculating your nightly rate?

Below is a link to my Airbnb, if you could give me some feedback on what you think of the listing it would also be much appreciated

Airbnb Link

Thank you!!!

John Underwood · Answer

As Caleb said, check your competition.

Vrbo has really goof built in Analytic tools to show the competition.

Your mortgage payment has nothing to do with what should be charged.

Scott E. · Answer

For the nightly rate you should follow what @Caleb Brown suggested. Look at comps and price accordingly.

Also I agree with his comments on the listing. Sorry to be harsh but you need to hear this - Your photos are awful.

You should have an interior designer, a property manager, or a realtor help you clean up and spruce the place up to make it as photogenic as possible.

Then hire a professional real estate photographer to take ~15 photos for your listing. It might cost you $300+ but it will be money well spent.

Caleb Brown · Answer

I would look on Airbnb and see what others are asking. You could also invest in AirDNA to get an idea of how others are performing(each property does vary so it's a rough estimate). Regarding your listing the first thing that stands out is photos. Hire professionals, it is the very first impression when potential guests are looking. It's a cute house. I would also see about getting it staged better. On the backyard(not urgent) you could add a gazebo and dress it up. Add a firepit and some things guests could do to hang outside. On your description are you able to highlight nearby amenities and fun things to do?

Andrew Steffens · Answer

I use AirDNA as a baseline then look at comparable nearby properties. There is seasonality to be considered if you just go off of AirDNA or a similar tool.

Richard Elvin · Answer

@Luis Ramirez Congrats on getting started! It looks like you've already made superhost! That shows you understand the hospitality side, which is super important.
As others have said, the cost of the mortgage isn't relevant to what you should be charging. If you're not familiar with the enemy/neighbor method, Google that and see what comps are going for.
I agree that the photos could use some updating, especially the one with the cords hanging down the wall. Google cordmate/wire hider/cable cover and hide those! It almost looks like an extension cord, if it is that may be a code violation. (Read lawsuit waiting to happen, if it is power). If it's ethernet/phone/whatever, cover it.

Just my opinions. Best to you in your endeavors!

Michael Baum · Answer

Hey @Luis Ramirez, yeah those pics are pretty bad. Also, the bedroom look like a dormitory at a reform school. You need a bunch more art and color on those walls.

Are you only on AirBNB? If so, then you need to get listed on VRBO as soon as possible. Why give up an avenue for guests to stay?

Sarah Kensinger · Answer

To find the average daily rate for your property Airdna has a free rentalizer you can use and there is also Rabbu.

How to calculate your night rate on Airbnb?

How to calculate your night rate on Airbnb?

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