Setting rental prices – how to proceed?
How do I set the right price for renting out my holiday house or apartment?
Do you have a holiday home that you would like to rent out? Then you have probably already thought about the most appropriate holiday rental price. As an owner, you primarily want to set a price that makes the rental profitable for you. In fact, various factors influence the appropriate rental amount. To name two significant criteria – the location of the property is, on one hand, important but so is the time of the booking.
Location and surroundings
When potential guests are looking for a suitable vacation home or apartment, they first turn their attention to the location. This, as well as the immediate surroundings of the holiday accommodation, is particularly important in their choice. For many people, a quiet environment is the deciding factor, followed by a beautiful view of the sea, the mountains or the lake. Vacation rentals in tourist areas usually cost more because they are in close proximity to attractions, shops and restaurants.
Direct view of the sea: This attracts guests and influences pricing
In a medium to large city, the distance to the centre plays a decisive role in establishing the rental price. The distance to the airport or train station can also affect the price. Especially for guests arriving without their own car, the easy accessibility to public transport is a considerable advantage. In winter sports resorts, the proximity to ski lifts is a real plus. If there are interesting excursion destinations close to the holiday apartment, you can also set your prices a little higher. In a remote or rural environment, it helps if the accommodation is located close to hiking trails and natural beauty spots. But that's not all: convenient access to the property is also attractive to guests. If there is a local service that regularly clears the driveway of snow, the likelihood of a booking in the winter season increases.
Type of holiday home
Detached house, villa, chalet or cosy holiday apartment: the type of vacation accommodation has a significant impact on the holiday rental price. The more luxurious the equipment and furnishings of the holiday accommodation, the more you can charge. If your guests are allowed to use the living areas, garden and pool at the accommodation privately, you can charge a higher rental price than if these facilities are shared.
Also, the more guests there are, the higher the rental price. However, the square metre size plays just as big a role as the number of bathrooms and bedrooms or sleeping spaces. A sofa bed instead of a normal sofa in the living room is also a big advantage. Washing machine, air conditioning and dishwasher are expected basic equipment, but they are still not compulsory and are therefore a benefit. You can factor in more income if all these amenities are available.
A pool is always an undisputed highlight. Statistically, vacation homes with a pool are booked more frequently. With extras such as sauna, whirlpool and e-car charging station, the holiday accommodation moves up into the upper price segment. Sports facilities such as a private tennis court make a vacation home for sports enthusiasts a premium class property. A garden, terrace or a balcony are well-sought after. High-quality outdoor furniture and a parking space also give the accommodation additional value.
Additional services
When on holiday, guests not only want a vacation home, but also like to take advantage of certain services. There are other important criteria that affect the rental price. These include extras such as WLAN connection and cleaning service. Towels and bed linen should be provided to make your guests' stay as comfortable as possible.
A wine tasting in a picturesque setting – an interesting additional service for your guests
Depending on the location of your holiday accommodation, you can also offer additional services – for example, wine tasting if your vacation apartment is located in a wine-growing region. Ask your potential guests directly about their wishes and preferences. Usually guests are willing to pay more if a breakfast service is part of the offer. For group bookings, it is worth offering an optional private cooking service. An important aspect for many guests is the transfer from and to the airport.
Each additional service provided will increase the holiday rental price. However, as not every guest has the same wishes and needs, you should consider flexibility. How about offering individual bookable additional services? You can also set a price for the total package with all extras.
Flexibility
When renting a holiday home or apartment, certain flexibility is required. This is also reflected in the rental price. You have to accept or use seasonal price fluctuations: in high season, rental prices are much higher than in low season. Special events on site attract guests and therefore drive up the price of a holiday home. On the other hand, there are also times when special or last-minute offers are necessary to be attractive compared to competitors and a lower price should be set. You need to keep an eye on the general demand and adjust your prices accordingly. It is helpful to develop a dynamic pricing approach that takes everything into account.
You can also secure more bookings by varying the minimum rental period of your vacation accommodation. Many guests would like to be able to book by the day. Instead of setting the minimum stay at one week, you could also calculate the price of your holiday home or apartment per night. Early booking options are also popular: many guests like to secure their vacation accommodation a year in advance. Fair cancellation conditions also inspire confidence and have a beneficial effect on the number of bookings.
Advice from an expert
Owners often find it difficult to set a suitable rental price for their holiday home. Does this apply to you? Then it's best to get professional advice. A company specialising in renting vacation homes and apartments, such as Interhome, can help you establish the right price for renting out your holiday accommodation. The company, which has been active in the industry since 1965, is one of the leading vacation home specialists in Europe. Based on decades of experience and continuous trend analysis, Interhome will work with you to determine the optimal price for a profitable rental. This is done, among other things, with the help of a price index database and by taking into account the rental prices of comparable holiday accommodation. Thanks to continuous individual analysis and a dynamic, demand-oriented pricing, you can react quickly and easily to the development of the market.
Renting profitably made easy – thanks to a professional partner
Interhome has experts on site and can support you with its local expertise "on the spot". Your contact person will also be happy to advise you on optimisations that will allow you to increase the holiday rental price and thus increase your earnings. If you decide to work with Interhome, the company will even support you with an advance payment for renovation work if required.
Are you still in the planning phase and considering investing in a vacation property? Here, too, the Interhome team will be at your side, giving you tips on where it is worth your while and informing you about how much return is possible.
Conclusion
The right rental price is imperative for a successful rental, but various factors play a role in its calculation. Therefore, it is advantageous for owners to work with an experienced company that knows how the market behaves and which rental price is appropriate for which location and season. In addition to the targeted marketing of the holiday home or apartment, a specialist such as Interhome also offers the support of experts who will take care of the optimal pricing and help you determine the best rental price.
Want to find out more?
Let us advise you free of charge and without obligation. We would be happy to show you your personal rental potential and together work out the right offer for you. Just reach out by filling out the Contact Form.
