Dynamic Pricing for 30+day Rentals

Medium-Term Rentals
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Dynamic Pricing for 30+day Rentals

Sarah Selle
Camp Hill, PA · Member since 2019 · 13 posts · 4 votes

Hi all,

I have a medium term rental (30+day stays) and have been using Price Labs for dynamic pricing. It's definitely set up for STRs and not properties that rent out monthly. I'm not sure it's worth the $20/mo vs. pricing appropriately and offering strategic discounts when vacant.

Thoughts?

- Has anyone found a good dynamic pricing software for medium term rentals?

-For those with medium-term rentals, do you use dynamic pricing software?

Thanks for your insight!! 

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Jared CooperPro Member
Rental Property Investor · Scottsdale, AZ · Member since 2020 · 24 posts · 8 votes
2y

Hi Sarah,

I have a seasonal market here in Phoenix-Scottsdale, AZ. I do a hybrid STR during the "on season" and then "off-season" MTR but also still do advertise for STR. I do use Pricelabs still during my MTR season for pricing my STRs.

Now, what I do for the MTR pricing is look at the "comps" for any furnished units on Zillow, Realtor, etc. and also go onto the OTAs and price out nearby comps. BTW FurnishFinder comps I've found tend to be on the lower price point (and less desirable décor usually). Once I have an idea on the MTR pricing then I go into an Excel Spreadsheet I created. Here, I can enter whatever nightly STR minimum rate I wish (from Pricelabs) and then see the host payout and guest "out the door" price. Finally, I use the monthly % discount to then make the OTA payout equal to my direct booking payout. The once caveat is that because of the demand pricing in PriceLabs (a surge pricing date) would result in a nightly rate greater than your minimum rate and thus less of a discount then budget. I'm open to any suggestions and/or different approaches too.

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  • Jared CooperPro Member
    Rental Property Investor · Scottsdale, AZ · Member since 2020 · 24 posts · 8 votes
    2y

    Hi Sarah,

    I have a seasonal market here in Phoenix-Scottsdale, AZ. I do a hybrid STR during the "on season" and then "off-season" MTR but also still do advertise for STR. I do use Pricelabs still during my MTR season for pricing my STRs.

    Now, what I do for the MTR pricing is look at the "comps" for any furnished units on Zillow, Realtor, etc. and also go onto the OTAs and price out nearby comps. BTW FurnishFinder comps I've found tend to be on the lower price point (and less desirable décor usually). Once I have an idea on the MTR pricing then I go into an Excel Spreadsheet I created. Here, I can enter whatever nightly STR minimum rate I wish (from Pricelabs) and then see the host payout and guest "out the door" price. Finally, I use the monthly % discount to then make the OTA payout equal to my direct booking payout. The once caveat is that because of the demand pricing in PriceLabs (a surge pricing date) would result in a nightly rate greater than your minimum rate and thus less of a discount then budget. I'm open to any suggestions and/or different approaches too.

    1Reply
  • Mel Adams
    Investor · San Diego · Member since 2021 · 86 posts · 91 votes
    2y

    I do not use a pricing software. I go off comps mainly on Furnished Finder as that's where I get the majority of my bookings from. On FF, make sure the comps you're using are actually booked properties, and you're not just pulling from every listing in an area as some of those may be sitting vacant because of bad pricing. 

    0Reply
  • Sarah Selle
    OP
    Camp Hill, PA · Member since 2019 · 13 posts · 4 votes
    2y

    Thank you, Mel!!

    0Reply
  • Yiwei Cheng
    Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes
    2y

    Hi Sarah! I own & manage 27+ STR & MTR. If it's just 1 property as MTR, I wouldn't recommend paying for a pricing software. For my MTRs, I just manually price because they have to book 30 days+ anyway, so there's no reason to change daily rates. You could change your rates monthly like summer vs winter if you want. Basically I just average out the nightly rate to what I want to get every month

    0Reply
  • Austin ClarenceBusiness Member
    Lender · Phoenix, AZ · Member since 2023 · 136 posts · 32 votes
    2y

    Jared had some excellent points. Also MTR pricing software might not be effective yet because there are so many variables with properties its hard to truly comp and get an apples to apples comparison (without looking further into the property and the amenities that are covered)

    For example the pricing software will not know exactly which utilities are covered, how nice the furniture is, term of lease which can impact the rate, other amenities that is not uniform amongst MTR inventory.


    I recommend manually finding comps on Zillow. That is what I do for my property when finding comps. I go back and forth with STR vs MTR depending on the season.

    [email protected]650-906-2376
    Austin Clarence with NEXA Mortgage552 Reviews
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  • Jeremy Jareckyj
    Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes
    2y

    I also do not recommend paying for a pricing software. I do like to have a slightly higher price with a discount that way after the discount the payout is what I am looking for. I have a feeling MTR guests booking like to see a discount on paper.

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  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    There is no dynamic pricing tools for MTRs yet. There is no pricing tool period for MTRs yet, though I know a few people are working on developing one. For now, you still have to do somewhat laborious research yourself using different sources such as Furnished Finder, Zillow, apartments.com, 30+ day stays on the OTAs, etc. The good thing about that is that it forces you to really examine your market and get a good grasp on what the competition is offering and how it's being priced. So while it's kind of a pain right now, I think it's not a bad thing for MTR operators - especially new ones - to have to do this kind of deep dive.

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  • Sarah Selle
    OP
    Camp Hill, PA · Member since 2019 · 13 posts · 4 votes
    2y

    Thank you Yiwei, Jared, Austin, Jeremy and Bonnie!!

    I have done the research and know the approximate amount I can ask for my home per month. I tried PriceLabs for 6mo based on the recommendations of the Mid-Term Rental Book from BiggerPockets. I have had a couple of months that exceeded what I would expect, but I think the changing prices may actually be deterring some guests.

    Jared & Jeremy - I think you're right! Guests love to get a discount. Currently, I offer 20% off the first two weeks if the property is about to be vacant. I'll have to look into your suggestions!

    0Reply
  • Jonathan StyerBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
    2y

    Hi @Sarah Selle

    While Price Labs is great for short stays, it might not fit MTR. Consider setting a competitive base rate and offering discounts for longer stays instead. Finding the balance between revenue and guest value is key.

    Styer Real Estate Professionals4.941 Reviews
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  • Sarah Selle
    OP
    Camp Hill, PA · Member since 2019 · 13 posts · 4 votes
    2y

    Thank you @Jonathan Styer!!

    1Reply
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