Your go-to guide for short-term rental pricing

Setting the right price for your short-term rental is crucial to your success. It can determine if your vacation home is even looked at, and then eventually booked. Most importantly, your rental rates drive your rental income and ROI.

Vacasa determines the rates of approximately 40,000 homes daily. We know firsthand: short-term rental pricing can get complicated. Here, we’ll break it down and show you how to narrow in on that ideal price for your own home.

What to consider when setting your rental rates

When determining your nightly rates, keep several key factors in mind. Staying informed allows you to be nimble with your price and adjust rates as needed. Here’s what to consider:

Market demand for your property

Demand isn’t static. It could rise and fall depending on:

• Weather
• Seasonality
• Events
• Attractions

At Vacasa, we adjust rental rates based on seasonality, demand, and availability. By leveraging this data and analytics, we can set the most profitable rates for different periods.

Your location and amenities

Keep in mind how far your home is to dining, shopping, and major attractions. A slopeside condo can command a higher rate than a home that requires a car to reach the ski lifts. Similarly, guests are willing to pay more for a home with coveted amenities, like a private pool and hot tub, versus a home without those luxuries.

What your competitors are charging

Research what similar properties in your area are charging. This can help you avoid undervaluing your property or overpricing, which could actually drive guests to your competitors. Offering great value can attract more bookings and maintain high occupancy rates.

Your expenses

Account for costs associated with maintaining and managing your rental property, such as property taxes, insurance, utilities, and cleaning services. Ensuring these expenses are covered while setting attractive rates for guests will help you achieve profitability.

How to manage your rental rates throughout the year

As we stated earlier—demand for your vacation home isn’t static. And, neither are your rates. In order to stay competitive throughout the year, you’ll have to stay on top of a few things that could impact your rates. These include:

Your guest reviews and feedback

Guests are a goldmine of information. Use their reviews and feedback to gain insights into the perceived value of your rental. Adjust rates based on feedback, whether guests find your rental overpriced or see it as a great value. This helps in setting rates that align with guest expectations.

Industry trends and pricing benchmarks

Keep up with industry trends and pricing benchmarks by researching similar properties in your area. Stay informed about industry changes or short-term rental regulations that may impact pricing. This knowledge helps in making informed decisions about rental rates.

Mastering your short-term rental pricing is key to making the most money and attracting the most guests. By understanding market trends, leveraging dynamic pricing strategies, and using the right tools, you can optimize your rental rates and boost your bottom line.