When you begin to rent a property on Airbnb, you will need to create an Airbnb pricing strategy. It doesn’t matter on the type of property that you’re offering, you shouldn’t underestimate the importance of having a good Airbnb pricing strategy in place. A good Airbnb pricing strategy will make sure that you are renting your property at competitive prices, compared to other similar rental properties in the area. Though making the perfect Airbnb pricing strategy isn’t always easy, it is well worth the time and effort that it takes. By carefully considering what you are charging and when, you can increase your rental income in a significant way. Airbnb hosts without a pricing strategy usually find that they don’t earn as much as they could. Plus, it can lead to inconsistent prices for guests and confusion for you.
Creating a great Airbnb pricing strategy
Whether you are renting out a property on Airbnb for the first time or you’re an existing Airbnb host that’s just not having any luck with the way that they’re doing things, you may want to consider creating a brand new Airbnb pricing strategy. If you already have a Airbnb pricing strategy, it may be time to make some necessary amendments. Though making a great Airbnb pricing strategy may not initially seem to be an easy task, there are some simple things that you can start with that will make a difference right away. In order to get the most out of your Airbnb pricing strategy, you should:
- Consider carefully your property’s location and the surrounding area – When you are creating an Airbnb pricing strategy, you should take into consideration where the property is located and the local area. Properties that are located in busier and more sought after areas can be priced higher than those that are located elsewhere. For example, rental properties in the centre of London can be priced higher than those on the outskirts as they are in a busier area. In order to get a good idea of what a standard price would be for your property, take the time to check out what other similar properties are being listed for on Airbnb. Then, price yours accordingly. If you price your property a lot higher than the location calls for, you could miss out on bookings. If you price your property a lot lower than the location calls for, you could reduce your potential rental income.
- Change prices regularly – A lot of landlords underestimate the importance of changing their rental prices regularly, which can see them missing out on a significant amount of money. When you are making your Airbnb pricing strategy, change your prices depending on the day of the week and the season. This could include charging more at weekends, during school holidays and at Christmas. You may even want to charge more during festivals and when special events are being held nearby.
- Charge more for extra services – If you provide additional services, don’t be afraid to charge guests – fairly – for these. In fact, most guests will be willing to pay an additional cost if you are providing them with something more that’s of value to them. If guests want an extra bed, you could charge a small fee for it. If guests want an extra guest, charge a small fee. If you are paying for professionals to clean the property before guests check in, ensure that this is covered in the rental price. Not charging more for extras is one of the ways that many Airbnb hosts accidentally reduce their potential income.
- Offer discounts for long term guests – Though a lot of landlords use Airbnb for short term rentals, the platform also works really well for much longer stays. There are a lot of benefits to renting properties on a long term basis, such as not having to handle the change over of guests and not having to pay for regular cleaning. However, you will need to ensure that your Airbnb pricing strategy reflects this. If you are looking to attract long term renters, consider offering weekly and monthly rates as a way to entice them. Long term Airbnb rentals are ideal for anyone who is relocating to a new area and needs somewhere to stay in the meantime, as well as those working abroad.
- Charge more for shorter stays – It’s common for landlords to factor short term stays into their Airbnb pricing strategy, charging more for stays of only one or two nights at a time. It isn’t always cost effective for guests to only stay for a few nights, as the cost of the booking won’t always make up for the cost of cleaning and the time it takes for you to manage their stay. However, by charging more for shorter stays you can avoid this. By charging more for the first few nights, you can guarantee that the booking is worth your time. This can also encourage guests to stay for a longer duration, as they’ll be getting more for their money if they do.
If you are new to using Airbnb, you may find yourself confused and overwhelmed when it comes to creating the perfect Airbnb pricing strategy. If you are, you’re not alone. It’s one aspect of renting a property on Airbnb that a lot of people tend to struggle with. After all, how are you supposed to know how much to charge guests and how can you guarantee that you are earning as much as possible? There’s a fine line between charging too much and too little, a line that can see you losing out on valuable rental income if you’re not careful. This is why a lot of Airbnb hosts choose to seek out the help of experts, such as the team here at Hostmaker.
At Hostmaker, we offer a wide range of Airbnb management services in London. This includes managing guest bookings, creating Airbnb pricing strategies and perfecting property listings. For help and advice, get in touch with the Hostmaker team. Contact Hostmaker today on +44 203 733 0770 or online.