STR: Charge extra per guest or flat price?

Question

Hi. New to this forum but experienced in STR’s. Just curious because I’m conflicted and I go back and forth on this often:

Do you prefer to charge a flat base price per night and not mess with guest count or keep base price lower to attract more guests but charge extra per guest?

Paul Sandhu · Answer

Flat price.  In my situation, trying to charge per person would be unenforceable.  It would require me to drive around every evening and take a head count of all the people inside that are working the day shift.  I'd have to do it again in the morning to catch people working night shifts. .  An occupant could say "I'm just visiting".  I put extra beds and sofa beds in most of my places to pack as many people as possible in them.

I give no incentive to sneak people in.  I give incentive to put as many people as possible in the house, since I never know when some will come and some will go.

One time I had 5 people in a 3BR house.  Some of the guys ganged up on the 5th and made him move out.  They got a replacement.  The 5th guy was made superintendant and he fired the guys that ganged up on him.  The remaining guys got new room mates.

Within a 4 month time I had a group of 5 guys in the house, after 4 months there were a different set of guys in there and I never had to clean or restock it and they always paid their rent.

Refinery contractors from Merit Electric.

Michael Nelson · Answer

I think setting a reasonable floor number of guests to be included in the rate is fair. So let’s say 6 people for a 3 bedroom, but to have a list price only including 1 person and jumping to 200 instead of the 125 a night I thought it would be can lead me to either lie about how many people are actually staying or find another listing. I’m not against charging per guest but just like any other fee, keep it in moderation.

Michael Greenberg · Answer

I have my linens professionally cleaned and agree with your pricing logic (a little bit) Carmen.  I charge a bit more ($5 per guest) above the number of beds I have in the house.  I never get any push back about this small fee.  I would try to find an "fee" that is not excessive.

Carmen Costescu · Answer

@Michael Nelson

Thanks for reply but I think you missed my point. It’s not about nickel and diming it’s about potentially coming up on way more searches and getting more bookings if you’re listed at let’s say $128 as base price that will appear on searches (+guest charge of $10/guest up to 9 additional guests=$200)  as opposed to coming up on searches as $200. I feel your target market now can open up to a couple who’s spending limit is lower and would otherwise not have paid the $200 a night but can book at $128 (+10)

Thoughts? Been doing this 6 years very successfully in SoCal market with 5 rentals and this is something I always struggle with

Michael Nelson · Answer

flat price, nickel and diming guests never goes over well.