How to Price Your Airbnb Rental?
Short term rentals are booming in Dubai. Dubai has become one of the top travel destinations of the world, hence the skyrocketing demand for short term rentals. Airbnb rentals are cashing in big on this demand. Any investor profiting from this demand certainly has a great pricing strategy.
Proper pricing is essential if you are to profit from your Airbnb rental, especially when the competition is so stiff. In the sections below, we are going to explore a few techniques you could use to come up with a competitive price for your Airbnb rental.
Explore the Market Value
Go out and collect some market intelligence such as short term rental demand and the structure of top-performing properties. Find competing properties in your geographic location, and check their prices and performance. All this information will help you compare different structures and prices to find out what performs best.
Undercut the Competing Properties
For a new Airbnb rental, the best way to quickly rack up those impressive reviews is to make it the cheapest option in town. At this point, your focus should be on creating a reputation around your services rather than making a profit.
Increase the price gradually as the reviews continue to rack up so that you can come to the market price and still continue receiving guests.
Keep an Eye for Special Events
Music festivals, marathons, or any other event in your area that attracts a lot of people is a perfect chance to cash in. These events increase the demand for short term rentals a couple of times over. You might be able to charge as much as five times the normal market rate.
Always be prepared for such events in advance. Research on special events that might come to your area in that year, so that you are adequately prepared to cash in some big bucks when the events come.
Proper Property Management
Over 60% of the revenue you get from your Airbnb rental is based on the intrinsic value of the property. It is important to ensure you keep your property in top-notch condition if you want to have competitive prices. Explore some ideas through which you can enhance the intrinsic value of your property, as well as improve the guest experience. At times it is best to compete on quality instead of price.
Property management can be hectic especially if you do not have the experience or time. It gets worse when you have a couple of properties to manage. Such requires a robust management system. That is where Airbnb management services such as Frank Porter come in.
Airbnb management agencies can help come up with a robust pricing strategy, that is going to maximize your revenue. You’ll spend a few bucks on the service, but you’ll get much more in return. Your revenues will be maximized after a proper pricing strategy is established, and proper management is maintained. Frank Porter is always ahead of the game when it comes to anticipating high demand for short term rentals and putting in measures to cash in on it.