Hi. To quickly re-introduce myself after only one post or so quite a while back... It's taken a while to actually buy a vacation rental and get going and I didn't feel like I quite belonged here without actually owning a renal property... I posted something maybe a year ago or more regarding getting started and now I finally am. I live in Rome and had planned on buying a rental property here - but have completely changed plans and bought 3 properties in Bonaire, Netherland Antilles. One of the properties will be for us to live in for a couple of years - and before that I will have to manage the properties remotely.
My first question then.
I am receiving the majority of requests for 2 or more weeks. I have probably received more requests for 3 weeks to one month rentals than for 7 day rentals. Everyone wants a (big) discount - and I don't quite know what kind of prices to offer for longer rentals. I do know that I do need to offer real discounts. Bonaire has 40 percent occupancy - so the rental market is very competitive. (but real estate is cheap and I believe, a good investment). I realize, then, that I have not exactly found myself the easiest job and I realize that we are not going to break the bank on rental income. But I would like to try anyway (-;
I've tried to create a decently priced rental that is decorated beautifully - but importing nice linens and towels, re-covering sofas, making new curtains, etc. There are virtually no shops on the island - and importing is very expensive - so many of the rentals out there are not so pretty.
In any case I need help on ideas for long term pricing.
Thanks for listening and thanks in advance for your comments.
I don't yet have a website but if I'm allowed to post this am on VRBO at http://www.vrbo.com/101320
pricing for long(er) rentals
Always a tough one this. Welcome by the way! I think you have to find out what other properties in your area are charging for similarly decorated/renovated apartments etc. Then, if you believe you can better them, do so. Then you run the risk of upsetting your fellow rental owners. No-one expects to pay 'holiday' prices for a 4-week or more rental, but only you can decide what you'll be happy with.
We took the decision here not to go with longer lets just yet, as we need our space to be a family together for periods outside of the holiday season. The difference being that we live here on site, and like to have a bit of a break to recharge our batteries now & then.
Good luck anyway.
We took the decision here not to go with longer lets just yet, as we need our space to be a family together for periods outside of the holiday season. The difference being that we live here on site, and like to have a bit of a break to recharge our batteries now & then.
Good luck anyway.
We don't do discounts during the high season, period. But then, we know we can fill the weeks with single-week bookings if we need to, so we are lucky in that regard.
In the off-season (November - May), we offer a 50% discount for bookings of 4+ weeks, but we don't include utilities in that.
I can't speak to what you should do, but that's what we do!
For you, I would think it would be somewhat different, since for us the issue is the cold and our electric heaters, which is probably not how it is during your low season...
In the off-season (November - May), we offer a 50% discount for bookings of 4+ weeks, but we don't include utilities in that.
I can't speak to what you should do, but that's what we do!
For you, I would think it would be somewhat different, since for us the issue is the cold and our electric heaters, which is probably not how it is during your low season...Brooke
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Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
Rocky,
Where I am based is in no way similar to the Dutch Antilles; not in weather, accessibility or market. Nonetheless, I will give an answer of sorts.
Here, anything in the High Season I charge for at the full rate. Those ten weeks are the foundations of my holiday lettings. I take the view that they will be booked and I offer no discounts (other than to my regulars). During Mid Season (the “shoulder� months) and Low Season I reduce my prices by 25% for bookings of over two weeks. Mind you, I don't advertise the fact.
For the period, end of October to the beginning of April, I don’t have an advertised price and I don’t invite short term lets at all. The work involved in opening up for a week and the possible heating costs mean that it is simply not worth it.
Longer term lets, those for 5 or 7 or 9 or 11 months, are different animals altogether. For those an entirely different market place prevails. The rents are perhaps 25% of what they would otherwise be in Mid Season but the tenant is responsible for all outgoings and repairs.
I now have experience of both types of letting. As an owner who lives on-site I have no real preference between the two although my day-to-day involvement in longer terms lettings is obviously a lot less. At the end of the day the net financial return is pretty much the same either way.
Isn’t it odd? I nearly finished up the BVI
Fluffy
Where I am based is in no way similar to the Dutch Antilles; not in weather, accessibility or market. Nonetheless, I will give an answer of sorts.
Here, anything in the High Season I charge for at the full rate. Those ten weeks are the foundations of my holiday lettings. I take the view that they will be booked and I offer no discounts (other than to my regulars). During Mid Season (the “shoulder� months) and Low Season I reduce my prices by 25% for bookings of over two weeks. Mind you, I don't advertise the fact.
For the period, end of October to the beginning of April, I don’t have an advertised price and I don’t invite short term lets at all. The work involved in opening up for a week and the possible heating costs mean that it is simply not worth it.
Longer term lets, those for 5 or 7 or 9 or 11 months, are different animals altogether. For those an entirely different market place prevails. The rents are perhaps 25% of what they would otherwise be in Mid Season but the tenant is responsible for all outgoings and repairs.
I now have experience of both types of letting. As an owner who lives on-site I have no real preference between the two although my day-to-day involvement in longer terms lettings is obviously a lot less. At the end of the day the net financial return is pretty much the same either way.
Isn’t it odd? I nearly finished up the BVI
Fluffy
Thanks for the responses - very very useful. This should give me good starting point regarding what type of discount I can go with Up until now (I'm embarassed to say) I've been haphazardly playing with the numbers for each request separately. Afraid I'll have to go closer to the 50% discount than the 25... but I just opened up business a month ago - so would like to get rolling. I don't, however, want to seem too cheap and am well aware that it could seem so - scaring away potential renters.
As for long term renters - One of the three apartments has someone in it long term paying as Alan said, about 25% of the vacation prices. They will leave, though in January and we'll renovate that place and for now, prefer to rent it to tourists. I do feel like there is more money to be made and for me a bit more interesting - but we'll see how the first year goes. I could find long term (6months-1year) renters quite easily if necessary.
As for high season - mine is Dec-Feb - which is soon! I still have a nearly empty calender. So - what do you think about high season discounts if this is your first year in business and with high season approaching?
thanks again for the help.
As for long term renters - One of the three apartments has someone in it long term paying as Alan said, about 25% of the vacation prices. They will leave, though in January and we'll renovate that place and for now, prefer to rent it to tourists. I do feel like there is more money to be made and for me a bit more interesting - but we'll see how the first year goes. I could find long term (6months-1year) renters quite easily if necessary.
As for high season - mine is Dec-Feb - which is soon! I still have a nearly empty calender. So - what do you think about high season discounts if this is your first year in business and with high season approaching?
thanks again for the help.
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Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
Rocky,
I should have added that I need bookings year round for the long term lets to produce the same net income as do holiday lets.
An ideal mix might be holiday lets for the High and Mid Seasons (let's say 4 months) and longer term lets for the rest of the year. It all depends on demand; without the demand it is all totally hypothetical.
Fluffy
I should have added that I need bookings year round for the long term lets to produce the same net income as do holiday lets.
An ideal mix might be holiday lets for the High and Mid Seasons (let's say 4 months) and longer term lets for the rest of the year. It all depends on demand; without the demand it is all totally hypothetical.
Fluffy