Rental rate advice
Once you've taken the plunge, you've purchased your holiday home and it's ready to welcome guests, the next step is deciding how much to let it out for.
Check out our tips below for getting your rental pricing right, or follow one of our video tutorials.
- Do your research. Our average rates have been formulated from properties on holidaylettings.co.uk giving you a realistic idea of what is already out there, but get online, search for properties like yours and get to know the market.
- Once you’ve looked at the average rates for properties in the same region, narrow it down to concentrate on properties with similar facilities. Properties with pools, for example, are likely to command higher rates than those without.
- Peak seasons vary from country to country and even from region to region. Not only the weather and school holidays, but also local events can influence demand and therefore what you should charge.
- Think ahead. If you can foresee weeks when demand will be lower, then think about lowering your rates or offering special discounts to attract out of season holidaymakers.
- Think about the risk of damage. If you are happy for people to bring their pets then you will need to factor this into the pricing. Also, you’re likely to have to do a more rigorous clean after animals have stayed at the property. You might like to consider charging a supplement.
- Renting out your property is a long term project. With this in mind consider inflation and planning your pricing over time with potential increases in mind. Initially, without an established guest base, and to test the market, you may need to attract holidaymakers with a lower price than you may want in the long term. Once you have a gauge of the demand and have people making repeat bookings then you can reassess your rates.
- Look at the competition and be level-headed about how your home compares and what you can realistically charge. However, never dramatically under price your property, this may have the opposite effect and end up putting guests off as they wonder what is wrong with the accommodation.
- Make your prices inclusive. Rather than offering a low rate, but with lots of extras that soon add up, offer one price with everything included.
- Make your pricing structure clear and easy to understand: stick to one basic system. Let people know that they can enquire for details on non-standard rates. Similarly, don’t have too many price bands: the rental table needs to be easy to look at.
- If you’re planning on letting your property for less than a week then you need to think about what to charge per night. If you want to make a profit, then nightly rates should be higher than simply dividing the weekly tariff by seven. Shorter stays entail more cleaning and changeovers, so you need to bear this in mind when setting your prices.
- Be prepared to compromise. Think about the lowest price you could charge in order to cover costs and start making a profit. Some holidaymakers will try to haggle, especially during off peak periods when demand is less.
- Keep an eye on the competition. Be sure to regularly check on what other owners in your area are charging and make sure that your rates continue to be competitive. Markets do change from year to year, so don’t be surprised if you need to adjust your pricing.