Are you considering running a short-term rental in Estes Park? If so, you'll have a lot of decisions to make that will impact your success and profits. One of the biggest is your pricing strategy.
Vacation rental pricing strategies can help you make the most of busy seasons and stay booked and competitive during slow seasons. When you plan ahead, you're less likely to face long stretches of vacancies and profit losses.
We're here to share some of the most important factors to consider when creating a flexible pricing plan. Read on for our expert advice.
Consider Your Overhead Costs
The ultimate goal of running a short-term rental is to turn a profit. There's no simpler way to approach your profit than to start with overhead costs. Make sure to consider both:
- Fixed costs: mortgage payments, property taxes, insurance, etc.
- Variable costs: utility bills, maintenance costs, cleaning fees, etc.
Variable costs will be easier to estimate the longer you run your short-term rental. Add your fixed costs and your variable estimate to calculate the minimum you can make each month to break even.
Keep in mind that your nightly short-term rental pricing will change throughout the month (i.e., weekdays should cost less than weekends). You'll also need to leave your property vacant long enough to clean it between guests.
Compare Your Advantages and Amenities
Once you have a sense of the base rental income you need to make to break even, it's time to start thinking about your value-adds. Some of the most desirable short-term rental amenities include:
- In-unit washer and dryer
- Free WiFi
- TV
- Fully functional kitchen
- Pet-friendliness
Then, compare your short-term rental to others in your area. How much are they charging and what are there amenities and occupancy rates? Local comparisons can give you a better sense of how much guests are willing to pay and how much you can charge while remaining competitive.
Prepare for Peak Season
In Estes Park, tourism peaks during the summer holiday season, meaning you'll see more inquiries between June and September.
Don't assume that you'll ride the wave of travelers all summer long with minimal effort. Savvy travelers start planning in advance because they know they're likely to find better deals. Consider offering early bird specials or discounts based on length of stay.
These discounts can reduce your vacancy rate and help you strategize for the busy summer in advance. Don't hesitate to raise prices for any remaining vacancies, but don't go so high that you lose last-minute travelers to the competition.
Call PMI Estes Park for Vacation Rental Pricing Strategies
Estes Park is a great place to run a short-term rental. However, your success depends on your ability to nail your vacation rental pricing strategies. This guide is a good starting place, but our experts at PMI Estes Park can do even more.
PMI Estes Park is a unique property management company that focuses solely on vacation rentals. We take company-tested strategies from all over the nation and cater them to the unique tourism industry right here in Colorado. Contact us to learn more about how we can help.
