Knowledge Center

Get More Renters. Work Less.

I think my vacation rental rates are too low. What should I do?


How do I compare to my competitors and effectively raise my rates if need be?

Asked By: Mike

Tags: Advertising New to Renting Rates

1 Answers

Mike

Raising rates is a delicate process. You run the distinct risk of discouraging new customers or confusing potential ones, and the whole thing can easily appear like a cash-grab.
 
The first step is to make sure your rates are consistent with your competitors. Check local listings and websites to easily find this out. You can also survey your guests to learn how they feel about your home, and whether or not they felt you gave them a good deal. 
 
Once you've done the math and figured that you're running a deficit, or are simply undercutting yourself, the trick is less in how to raise funds than it is how to go about telling your guests. New guests may not know any different, especially if the raise is incremental. Another popular method is to raise seasonal rates, rather than having all the numbers on your website jump all at once. 
 
Repeat guests can be assuaged by offering discounts or justifying your new pricing. Give them ample notice, explain (if necessary) what the money is needed for and remind them why they and many others find your home worthy. 

Read more about setting up your rental rates.