Hello all,
This is my first time posting a question, and I love this site!
My current question is how do you determine what % to add on to the rental to make it worth the effort? I realize that you have to analyze the expenses involved and cover your costs, but then what? Do you add 10%, 20%, etc...? Insurance covers the big "what ifs" like the roof blows off in a storm or there is a fire, but what is in it for us for simply making the property available? What is a reasonable markup?
Thank you in advance for any and all help!
Pricing a rental
Hello and welcome!
Your rental price won't necessarily be related to your expenses. Rather, it should reflect what the market will bear. (A little research will help you figure that out.)
For instance, if similiar properties in your area are renting for $100 a week, then you might want to start at or below $100... especially if you add some very special amenities that make your property stand out.
As for expenses, if your mortgage/taxes/supplies/maintenance/marketing/etc work out to $50 a week, happy you; if they are $200 a week, then it's a good thing you enjoy vacationing at this property yourself.
Happy renting!
debk
Your rental price won't necessarily be related to your expenses. Rather, it should reflect what the market will bear. (A little research will help you figure that out.)
For instance, if similiar properties in your area are renting for $100 a week, then you might want to start at or below $100... especially if you add some very special amenities that make your property stand out.
As for expenses, if your mortgage/taxes/supplies/maintenance/marketing/etc work out to $50 a week, happy you; if they are $200 a week, then it's a good thing you enjoy vacationing at this property yourself.
Happy renting!
debk
-
ravetildon
- Posts: 205
- Joined: Wed Mar 09, 2005 2:11 am
- Location: I love Travel! - We Are Based Around San Francisco, California
pricing
I usually go to all the large portals & make a list of the total price. verifying if that price includes all the extras such as cleaning, taxes, etc. Then write in all the option the other properties have & their location to all the tourist attractions.
When I first start out I may price a lil low to make sure I am filled up. As you get a repeat client base you can start to increase your prices.
When I first start out I may price a lil low to make sure I am filled up. As you get a repeat client base you can start to increase your prices.