Airbnb Rentals How do I price my Airbnb property? by Diala Taneeb September 24, 2016January 29, 2019 by Diala Taneeb September 24, 2016January 29, 2019 How do I know what to charge and when? Determining if the price is right can be tricky especially since prices have to fluctuate from time to time. Not charging too high or too low is the goal and yet there are times when a price should be relatively high or low. There’s a thin dollar bill between overpriced and underpriced. Stop Getting High If you are a new Airbnb host or have a new property, don’t have high rates. When you haven’t been “tried out” a lot and aren’t well known on Airbnb, people aren’t going to be as comfortable staying at your property, much less paying premium for it. Airbnb guests are more likely to go with a property that has a lot of reviews because it helps any hesitation they may have. So begin with charging a low price, compared to other properties in the market, to draw them in and start collecting bookings and reviews. Be sure to ask them for their feedback and to leave a review so they can start piling up and you can start making necessary improvements. Stop Being Low . . . Once your property gains integrity, you should start raising your prices. Now that you have lots of reviews and bookings, your SEO has increased (site ranking) which again, puts travelers at ease. However, if you start getting completely booked for the next 3 months, it may feel like prosperity but doesn’t necessarily mean you’re making the profit you should be. This means you are charging too low, so raise the prices until you see a difference in booking. Start out with increasing 5-10% and observe. You should see a decrease in occupancy, if you don’t, then you are still charging too low and not making as much of a profit. You should be booked a few weeks out but only half booked a month or two out. Related: Rental Income from Airbnb The Weekend – Can’t Feel My Profit While you shouldn’t price like a hotel, you should use the similar strategy, time-based pricing – charging more during the weekends and high season. When there is a high demand, charge more because of the limited options. When there is a low demand, charge less because there will be plenty of options for tourists. If you’re able to benefit from these prices, go for it, but make it worthwhile for your guests and their money. One way to see if you’re charging enough but still having a competitive price is comparing your prices to nearby hotels and properties. When special events take place in your area, visitors will book well in advance. Such bookings can go from 2-5x the normal rate, so take advantage. Resources Airbnb offers information about pricing and how to set up custom, seasonal and weekend pricing. There is also Everbooked, which automatically sets your prices for you based on events, seasonality and competition. Again, you can compare your prices to local hotels and Airbnb properties. Always take in account the property’s amenities and features, rates for similar properties and travel trends. Finally, you can always use Mashvisor predictive analytics to help you know what your earning should be to cover your costs and gain a return. Related: The Use of Predictive Analytics in Real Estate Investing What pricing strategies do you use? What have your experiences been like during the weekends and high seasons? When do you have the highest rates? Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Rental Income 0 FacebookTwitterGoogle +PinterestLinkedin Diala Taneeb Diala is among the most experienced content marketers at Mashvisor. She loves writing about everything real estate including investment strategies, how to buy a profitable rental property, and the best locations for investing in real estate. Previous Post Real Estate Investing: Traditional vs. Airbnb Investments Next Post 4 Reasons to Buy Airbnb Investment Property in Austin Related Posts Should You Invest in Vacation Home Rentals in Orlando? Turning Your Airbnb Investment Property Into a Multi-Profit Property Vacation Home Rentals: Real Estate Investing Made Easy What’s the Best Option on the Market for Short-Term Rentals? The Best Cities for Airbnb Investment 2018 with High Cash on Cash Return What Are the Best Neighborhoods for Investing in Rental Properties in the Austin Real Estate Market in 2018? How Does San Diego Real Estate Look Right Now for Real Estate Investors? What Can Hosts Do to Improve the Airbnb Experiences of Their Guests? A Guide to Turning Your Traditional Rental into an Airbnb Rental Property Airbnb Profit Calculator: What Is This and How Can You Make Money With It? How to Start an Airbnb Business in 2020 Rabbu Airbnb Analytics vs Mashvisor Airbnb Analytics: Which Platform Is More Reliable?