Weekly Rates TOO low?
Posted: Fri Aug 11, 2006 1:11 pm
I'm buying a small home in Italy..and very happy with my choice I had planned to rent it by owner when I am not using it...but...I found out that the local management company (it is a "development" of restored homes) is/will be renting them at VERY low prices (under market, IMHO after looking at various listing sites).
They will be renting out a one bedroom for 200 euros a week - but the owner will have to pay 20% out of that for commission as well as 30-60euros cleaning charge and 40-50 euros laundry service on top of usual upkeep...obviously, it is not worth it to me to have guests in my home for a few dollars a week profit (max 80 euros? less if I pay for TV or heat) - I don't think the problem is the 20% (that seems standard), but the actual rates (only 150 euros/week for a studio)
As I said, I would like to do it by owner mostly anyway, but I think it will be an issue if I charge more than all the other homes in the area
Right now, there is only one home I know of finished and rented at that price...the only other things I have to go on are...
-the local "hotel" (a 1* I believe) that charges 55euros/night for a double.
-the local B&B that charges 120/night for a double (and 60 euros extra for each additional person - including children, but, wityh breakfast, I'd assume )
-and a country farmhouse with apartments that is maybe 7km away (my place is in the village) that charges 80/night for a one bedroom, 120/night for a two bedroom (I have a one bedroom, with a loft befroom for children). but they do have a pool (wich my guest can use at a daily rate if they wish)
Thank you in advance for the advice! I guess I just need to decide if I want to choose a price that makes since to ME and market it, or if I want to wait it out and see what happens to the prices and start renting when the weekly rate goes up a bit and it would be worth it to me....no point renting it for free (which seems what it would be after my expenses)
They will be renting out a one bedroom for 200 euros a week - but the owner will have to pay 20% out of that for commission as well as 30-60euros cleaning charge and 40-50 euros laundry service on top of usual upkeep...obviously, it is not worth it to me to have guests in my home for a few dollars a week profit (max 80 euros? less if I pay for TV or heat) - I don't think the problem is the 20% (that seems standard), but the actual rates (only 150 euros/week for a studio)
As I said, I would like to do it by owner mostly anyway, but I think it will be an issue if I charge more than all the other homes in the area
Right now, there is only one home I know of finished and rented at that price...the only other things I have to go on are...
-the local "hotel" (a 1* I believe) that charges 55euros/night for a double.
-the local B&B that charges 120/night for a double (and 60 euros extra for each additional person - including children, but, wityh breakfast, I'd assume )
-and a country farmhouse with apartments that is maybe 7km away (my place is in the village) that charges 80/night for a one bedroom, 120/night for a two bedroom (I have a one bedroom, with a loft befroom for children). but they do have a pool (wich my guest can use at a daily rate if they wish)
Thank you in advance for the advice! I guess I just need to decide if I want to choose a price that makes since to ME and market it, or if I want to wait it out and see what happens to the prices and start renting when the weekly rate goes up a bit and it would be worth it to me....no point renting it for free (which seems what it would be after my expenses)