With its scenic beauty and lax rental laws, Lake Havasu is a great vacation rental investment. The question is: how do you make the most of it?
Like anywhere else, this usually comes down to vacation rental pricing strategies. A good pricing strategy allows you to:
- Increase revenue through dynamic pricing
- Identify competitive rental rates
- Achieve maximum bookings
Not sure how to design the right pricing strategy for your Lake Havasu rental? Here are some tips that will help you make the math work!
Set a Minimum Length of Stay
In the summer, you'll often see guests who want to book your rental for the long weekend. However, these short stays often aren't worth it. Turning over the rental too often can include large maintenance and cleaning costs.
To maximize rental income, set a minimum length of stay during peak season. Don't want to miss out on bookings? If your rental is still empty close to the final booking date, lower the minimum stay to your liking.
Monitor Your Competition
Keeping track of other Lake Havasu rentals is essential for setting your prices. If your competitors' rates drop, you may need to drop yours as well. This is also a good way to find out if you've been selling nights too cheaply.
Of course, competitor-based pricing only makes sense when comparing like for like. If you're renting out your house, don't compare it to a premium villa. Find properties similar to yours, then price accordingly.
Capture More Last-Minute Bookings
Capturing last-minute bookings is one of the most tried-and-true vacation rental tips out there. Many travelers rely on last-minute bookings to get discounts, making them a great way to fill unoccupied days.
Struggling to handle these bookings? Use property management software to automate as much of this process as possible. Automation allows you to:
- Send confirmation emails
- Offer a digital guidebook for your rental
- Sync booking information across channels
- Manage maintenance crews
Consider Upcoming Holidays
Maintaining occupancy rates may be the trickiest part of rental property management. Seasonality is a big part of this process. Being aware of it helps you pinpoint the exact times you need to increase or drop your prices.
One key factor many landlords forget about, however, is the holiday season. Many local and national holidays can increase demand for your property. This is usually a good time to up your prices a notch.
Have a Minimum Nightly Rate
Every good pricing strategy guide includes setting a minimum nightly rate. You can calculate yours by looking at your expenses. Go through your fixed and variable costs to see how much your rental costs to maintain.
Once you have that number, use it to set your minimum nightly rate. Commit to never going under it, even in the off-season. If your property costs rise, increase your nightly rates accordingly.
Vacation Rental Pricing Strategies and You
The bottom line: finding the optimal rental prices involves a lot of research. The above vacation rental pricing strategies will help you get started!
Need help finding the ideal rental price for your Lake Havasu property? At PMI Lake Havasu, we use best-in-class technology to determine the perfect dynamic pricing structure for our clients! Contact us here to learn more!
