How much can you charge per night? That is what really matters and what the entire motivation behind renting out your home is all about. I have seen plenty of mistakes in this department, and I recognize many people online who rent out their home way to cheap. The most common mistake people make is that they do not adjust and update their prices depending on seasons or demand. They simply charge the same price year round. That is bad business! It will only take you around 30 seconds to change the price. These 30 seconds can mean the difference between several hundred pounds a month.
Why should you update your price
When it comes to price there are basically two areas people tend to overlook. Seasonal fluctuations/demand and cleaning fee. I will dedicate another blog post to the subject of cleaning and how to decide what the cleaning fee should be. Cleaning is more important than you might think and sadly often not prioritized as much as it should be. Instead, this blog post will focus on seasonal fluctuations and demand.
When it comes to setting the price of their rental people tend to forget to update them depending on seasons. This is a huge mistake as seasonal fluctuation controls price for everything else so why not on the price of your home. During peak season the demand for available homes will be much higher. You have to take advantage of this and increase the price per night for your home. Contrary you also have to lower your price doing the slower seasons. Simply using the same price year round will result in you missing out. You will not get paid as much as you should during peak season and you will not be able to rent out your home during the slower seasons.
Determine peak season and demand
Most people have a general idea of when peak season is for their hometown. We all know that price for hotels etc. will be higher during the summer, around New years and Christmas and so on. However, how do you determine the demand for your area? One site that can help you is Airdna. This site allows you to look at your town, and see how many active Airbnb homes there are in your area. That way you can get a better idea of your competition and whether or not you have to adjust the price of your listing.