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How to Figure out your Nightly Rate for your Airbnb?

The nightly rate of your vacation rental property will determine how much income you will produce. It is very important and we will give you our tips on how to figure out what nightly rate to charge!



How to Figure out your Nightly Rate for your Airbnb?


Welcome to the video. The nightly rate of your vacation rental property will determine how much income you will produce. It is very important and can be very tricky at times to figure out and master! In this video we are giving our tips and tricks on how to figure out the perfect price you should be charging as your nightly rate on your Airbnb property. YouTube Link: https://youtu.be/-_KKXoc66rQ

 

How to Figure out your Nightly Rate for your Airbnb?



1. Do your RESEARCH

a. AirDna

i. FREE tools

ii. Tells you average nightly rate, occupancy and expected revenue for your

area.


b. Find your comps

i. Use Airdna to find similar sized housing in your area, click on the link to

use as comps

ii. Search airbnb for other properties in and around your area

iii. Based on amount of reviews and calendar you can usually tell what their

occupancy rate it


2. Constantly Adjust Pricing

a. Less at First

i. If it’s a brand new property you want to charge less so you can get some

bookings and get some reviews


b. Slow Season = Less

i. Charge less during the slow season and more during the high season

ii. Also less on weekdays and more on weekends

iii. Any big events? Make sure to mark those prices up way in advance to

capitalize


3. Use a Pricing Software

a. Pricing Software can be a great ROI

i. Pricing softwares are constantly adjusting pricing on an almost daily

basis. They use data to figure out availability, seasonality, and other

factors to price your property for you.

ii. Cost a little money but could be a great return to maximize those rental

rates!


b. MUST put in base and min prices

i. Most softwares come with a free base price help software to help you

figure out what your base price should be. Usually takes a few days to

analyze property but after words is a great tool.

ii. Change your base and min pricing during slow/high seasons


4. DON’T use the Airbnb recommended pricing

a. This price is usually very low because they can’t analyze the quality of your listing

only the size and location.

b. Stay away from this!


5. Figure out your Goals

a. Do you want high occupancy?

i. We love high occupancy because it means more reviews, which means

better seo and your property will be top of the list!

ii. More turnovers means more cleaning fees as well which is nice if you

clean and profit from them yourselves.


b. Do you want less turnovers?

i. Maybe you want less turnovers and would rather have only the best

pricing and less occupancy? In that case you’d price higher.


6. Adjust cleaning fee

a. Guests don’t originally see the cleaning fee breakdown. They only see the

average nightly rate at first which includes cleaning fee. If your cleaning fee is too

high then it boosts the average nightly rate exorbitantly.


b. We have cleaners that work for us and we pay them an hourly rate. That way we

can lower cleaning fee, increasing occupancy and we aren’t losing money on the

cleaning fees because we pay our cleaners a specific amount each week.


7. Be Flexible!

a. Play around with your pricing! We still do! If you aren’t getting booked enough

lower price, if you’re getting booked to much or aren’t happy with the quality of

the guest then raise it! Pricing will be ever evolving!

 

Join Us Next Week


Welcome to the Carla & Conner YouTube Channel! We will be coming out with new videos EVERY Wednesday & Friday! We will be giving you a behind the scene's look at running airbnb properties, business and real estate investing advise, how we do everything budget friendly and how we get along as a mother-son business.


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Carla & Conner are the mother-son real estate and design duo. They are coming clean about all of the dirty secrets airbnb hosts don't want you to know. From real estate investing, finance, business to interior design and budget friendly hacks! Carla & Conner will upload new exciting videos every week.