Tourism to North Carolina is only growing. Domestic travelers spent a record $34.6 billion in 2023, an increase of 6.9 compared to 2022. Add in international visitors and the figure rises to $35.6 billion.
It's a valuable area for vacation rental investment. Set the right price, and you'll have a high ROI.
Read on to learn vacation rental pricing strategies for maximum profit.
Use Dynamic Pricing
The basic definition of a dynamic pricing strategy means adjusting prices based on demand. When demand is high, you charge more. When demand is low, you charge less.
This changes daily for short-term rentals. Constantly analyze the latest trends to see what the best rate is.
Get a clear picture of the local vacation rental market. How many vacation homes are there, and what are they going for?
Compare yourself to your competition. Only charge significantly more than them if your property is valuable enough.
The major difference between short-term rentals and other real estate investments is that they provide seasonal rental income. That means your rates also need to change seasonally.
Charge more during peak seasons such as holidays, local events, or popular travel periods. Charge less or offer discounts during the off-season to decrease vacancies.
Track Your Expenses
Complete vacation rental pricing strategies need to look at both sides of the coin. How much can you earn, and how much are you spending?
Track all expenses, including:
- Mortgage or rent
- Utilities
- Cleaning fees
- Restocking
- Inspections
- Maintenance and repairs
- Insurance
- Taxes
- Marketing
Add in a buffer for emergencies. These numbers give you a baseline so you know how much you have to make to cover your expenses and make a profit.
Boost Guest Experience
If there's one thing you should put the most time and money towards in your vacation home investment, it's your guests' experiences. If they have a horrible stay, they won't want to pay any amount for it.
Even worse, they'll leave negative reviews. These alone can be enough to tank the value of their property.
Don't forget the power of a first impression. Create attractive listings and feature any positive reviews you have on your website.
Do everything you can to make their stay the best it can be. Provide honest information, keep up with maintenance, and be available to answer any questions.
Offer Discounts and Incentives
Incentives should be part of all rental business strategies. They can keep units filled and encourage applications for ones that are vacant.
Offer discounts for longer stays, last-minute or early bookings, or during slow periods. You can also use them to reward repeated guests or frequent customers.
Seasonality also comes into play here. Offer discounts during slow seasons to attract guests who wouldn't otherwise be interested.
Setting Vacation Rental Pricing Strategies
Vacation rental pricing strategies need to be dynamic, constantly looking at changes in the seasons and market conditions. Focusing on guest experiences and offering discounts establishes your property as a valuable place to stay.
PMI Marathon is a property management company with a team of licensed professionals. What sets us apart is our attention to the small details that could leave owners with extra expenses or liability.
Contact us for help pricing and managing your vacation rental today.
