Incorporating HOA fees into pricing
Hey Everyone,
We operate an STR in downtown Seattle and our HOA charges a fee that's billed to us per stay. Cost of doing business in the building unfortunately. I'm wondering how other operators that have this extra cost incorporate it into their pricing? As of know, we only charge a cleaning fee and use dynamic pricing software to set daily rates. I know Airbnb has recently altered their fee structures. I'm wondering if we can and should list a separate management fee under the platform? Currently we try and incorporate the fee into our daily rate. It would nice to have it standardized for each stay, with the downside of an additional fee which could deter some guests. Thanks all.
Most Popular Reply
Most people are going to buy based on total cost, not the breakdown. Just list it as an additional fee for the HOA. Provided its not pushing your total price into an entirely new price tier, it should be fine - but I don't know your market so if pricing is very inelastic you'll need to monitor closely and potentially test different models.