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 Figuring out how to price your Florida vacation rental home can be a tricky process.
Crafting your pricing strategy is not the same across the entire vacation rental industry. For the best result, you should consider several different factors, as they heavily depend on your situation. First, you want to ensure that you are competitively pricing your vacation rental home to ensure you are getting the most out of your investment. Here are five things to consider when pricing your Florida vacation rental: 1. Calculate Your Minimum Rate
Your minimum rental rate should cover the expenses needed to maintain your vacation home. Mortgage payments, taxes, and utilities are the easiest to estimate, and you may have some experience with this if you are already a homeowner. You should also include any work that needs to get done to keep the property appealing to renters. Regular professional cleanings, landscaping, and repairs are essential services required to maintain the physical upkeep. Any additional furnishings, linens, or appliances that you may use to attract guests can also be factored in. 2. Use Local Vacation Rental Rates to Set a Competitive Price
With your minimum rate in mind, compare this to the rental climate surrounding your vacation home. Look specifically at properties similar to yours in size, location, number of bedrooms, and extra amenities. Renters may consider the inclusion of different features worth more, meaning they'll be willing to pay more for access to things like a pool or a waterfront view. This is especially true in Florida. For example, on Captiva and Sanibel Islands, the same exact floorplan with a great view of the turquoise blue water will always rent quicker, even though the rate is higher. You will need this type of information to price your rate competitively. Setting your rate lower than your competitors can increase your occupancy rates. This strategy will require you to focus on having frequent bookings to make up the cost. Setting your rate higher than your competitors will cut the frequency of renters. Still, you can make it worth the price by offering more value-added services such as free WiFi, access to golf carts, kayaks, or flexible check-in/check-out times. 3. Consider Demand Fluctuations Throughout the Year
Most vacation rental homeowners will have different pricing for peak and slow seasons to follow seasonal demand. Prices during peak seasons are typically higher due to increased demand and lower during slow seasons to increase occupancy. Peak and slow seasons depend on factors that will attract renters to the area, such as local events, festivals, and weather conditions. To get more of a competitive edge, consider reducing your rates during the months before and after the peak season to increase profits. Even with peak seasons and competitive pricing, you may not have a booking every night. Keep in mind the times you may not generate revenue due to vacancies. Price accordingly during times with high occupancy to make up for the times of low occupancy. 4. Utilize Pricing Tools and Software
Technology has progressed to the point where a rental property owner won't need to do all these calculations by hand. Instead, there are a variety of dynamic pricing tools one can use to determine their rental rate. These tools draw from a database of information such as location, competition, and occupancy rates. 5. Use A Vacation Rental Management Service
Using a vacation rental management service, such a Kingfisher Vacation Rentals will take the stress of pricing your vacation rental home right off your shoulders. We know the Captiva and Sanibel market better than anyone and understand how to price your vacation rental home accurately. In addition, our personalized 1:1 services will help you reach your rental revenue goals by managing every aspect of your vacation rental.
Let Kingfisher Vacation Rentals Price Your Vacation Rental for You
If you are thinking about investing in a Captiva or Sanibel vacation rental property but are unsure where to begin, Kingfisher Vacation Rentals can help. We are dedicated to providing exceptional service to guests and homeowners that goes far beyond the reservation process. Our professional owner relations team will ensure your rental home checks all the boxes before each guest arrives. We clean, inspect, and maintain your property with our in-house housekeeping run by a dedicated manager. In addition, we provide 24/7 maintenance services to guests during their stays, ensuring timely resolution of issues and positive reviews. To learn more, visit our website or contact us: info@gokingfisher.com or 239-472-2100.
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