How much to charge?

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
Foxandsot
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Location: Pervolia, cyprus
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How much to charge?

Post by Foxandsot »

Hello

I;ve been doing research on how much to charge but I'm not finding too many properties the same as ours in the local area, the main reason being they usually have no pool or a communal pool or they have 1 more or 1 less bedroom. How much extra would a private pool get, if any? I don't want to price ourselves out of the market neither do I want to put too low a price.

Any ideas?
Thanks
Michelle
Marion
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Post by Marion »

How long is a piece of string :)
Very difficult this and you may have to adjust after the first year. Basically if you get lots of enquiries you charges are too low and if not enough they are too high. I would suggest that you look at other properties with the same type of accommodation e.g. number of bedrooms and if these are the same sort of quality add 10% :?: for the pool another 10-15% for an additional bedroom. I think the pool should definitely demand a premium. Try dividing your price by the number of guests and if this seems reasonable then it's about right. Gut feeling is a good guide. However without knowing your area and market it is difficult to say. Are you aiming at families, couples etc. I have an apartment so my letting is different than a villa and I can compare much more with local hotel prices.
What do others think?
No need to go far to shop 'til you drop - just go next door to Chanel. http://rueparadis.monsite.wanadoo.fr/
Hells Bells
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Post by Hells Bells »

Exactly. I booked all my peak weeks, and Ithought they were too expensive, but so far I have nothing booked for the summer, so I'm thinking of lowering them (special offers!!).
gh
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Location: Poitou Charente/Moraira/UK

Post by gh »

We like yourself have researched and came to the decision that £100 p/p/w was a fair price for peak season to ask from guests for a home that sleeps 8 in 4 bedrooms with a private pool.
As we are full from next week until Sept, we have been fully booked since early January, the guests think so also. :)

I would advise that you pitch your price between the larger and smaller house price bracket. You wont be far off the mark.
Others with homes in your country; will perhaps advise you differently.
jess
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Joined: Tue Dec 13, 2005 5:57 am
Location: Adirondacks, NY

Post by jess »

Personally, I think you need to know your break even point first. Hopefully that is well below the possible rental range!

I've heard that the first year or so is touch and go, and then you get into the groove.

The other thing you can do is work out a 'formula' for the other places in your area--- $x for each bedroom, $x for each bath, $x for each extra, and add it up that way--- instead of total to total...

HTH!
jess
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