Since the 1900s, real estate has become one of the most financially secure investments. However, trends have shifted from residential homes to short-term rentals.
The average annual income for a host is almost $59,000. But there is plenty of hard work behind the scenes to achieve a successful vacation home. Arguably, the most crucial factor is vacation rental pricing strategies.
Most landlords keep their tips and tricks to themselves. But today, our experts want to share four ways to maximize your vacation rental income!
Market Research
Competition within the vacation property business is at an all-time high. Experts predict that the industry will surpass 228.9 billion by the end of the decade. So, conduct in-depth market research to stay ahead of your rivals.
First, examine the local competition. Search for properties nearby to see what deals they offer. However, it's also vital to note their size, number of bedrooms, amenities, and location. Price-matching a flat across the road won't make yours most enticing if it has a hot tub and more living space.
In addition, you must understand your target audience. Orlando, FL, is popular with families. So, fully stocked kitchens, laundry facilities, and entertainment options are crucial.
Special Packages and Promotions
Creating special packages and promotions is the simplest way to attract new clients. Almost seven out of ten workers state that the growing cost of living is outpacing their wages. Therefore, people are constantly searching for top value-for-money deals.
Bundle accommodation with tickets to nearby attractions and dining vouchers. You can also add exclusive experiences to provide added value for guests.
These enticing offerings differentiate your rental from competitors. In return, you can justify higher pricing while enhancing the overall guest experience.
Seasonal Adjustment
Orlando welcomes over 74 million tourists annually. The scenery, climate, and, of course, well-known theme parks attract people of all ages.
Although millions visit Florida's fourth-largest city, they often come in spurts. You can increase rates to meet demand during peak periods, such as school holidays and events. The busy period lasts from mid-June to the end of August.
One of the things to consider before starting a rental is the off-season. Remember that many people visit during this time to enjoy lower prices. It's better to have a high occupancy rate at slightly lower prices than vice versa.
Length of Stay Discounts
During the pandemic, people were forced to stay home. Many missed out on chances to explore new lands. As a result, revenge travel was born, meaning people are traveling more and for longer periods.
Remote jobs are also playing a role in the increase in extended vacations. People can still attend to work duties from the comfort of a short-term rental with Wi-Fi. By offering discounts, you can market your rooms to a niche of travelers and ensure bookings in advance.
Carry Out the Best Vacation Rental Pricing Strategies for 2024
Real estate trends can change in the blink of an eye. Luckily, short-term properties will remain a craze in 2024. After reading our guide, you can make the most of the opportunity with our vacation rental pricing strategies.
But do you want to continuously adapt, monitor, and implement a new structure every season?
If not, work with PMI Orlando MyPlace and a manager with over 17 years of experience by contacting us today!
