When listing your property for a short-term rental, setting your Airbnb price may not initially seem complicated. However, with those hosts that have either set their price way too low or way too high, pricing your listing right dramatically affects your income and occupancy.
So, how do you find out the most optimum price for your property? There are many factors to take into account, which have an affect on the rate. Here are our top tips to become an Airbnb pricing pro.
How to set your initial base price
Before moving onto more advanced factors in setting your final price, the three main influences that affect your short let price are the location, the appearance of your property and the local market price.
You have to think about what your guests are looking for and price your short-term rental accordingly. For instance, properties in London that are closer to the center, near a public park or attraction are typically more expensive. Just like you would pay a little extra to wake up to a beautiful sea view on holiday, a flat overlooking the city can charge a premium – your favorite rooftop bars already do so. Additionally, those rentals located near public transport are a favourite for guests as it adds extra convenience to their holiday.
Bringing to the fore your attractive location within your listing promotes an increase in bookings and you can slightly raise your price based on this advantage. For instance, being located next to businesses and universities might be very interesting to professionals and students looking for accommodation for a couple of months.
The Property Appearance
Everyone always loves their home and it is normal to think that your price should reflect how amazing it is. However, you should try and think subjectively when viewing your property from a prospective guests eye; here is a checklist to help you realise your property’s current level.
Age of the property – Typically the more modern the better, however, if your property has a niche historical look, this can also be an attractive stay for a guest.
Number of bedrooms
Number of bathrooms
Appliances – has your property got all the necessary appliances such as cooking equipment or entertainment facilities, etc ?
Local market price
By understanding what hosts with a similar property features in your area are charging, you are able to generate your own price based from this. If the average price amongst your competitors is for instance, £200 per night but you have a few extra features that guests would happily pay an extra amount for then look to slightly raise your price or even match the price to make sure you receive every booking.
Constantly understanding the market is a key factor to generate continuous bookings at the highest income.
How to build your pricing strategy
Now that you know how much you should charge on average for your property when short letting, let’s start thinking about your pricing strategy over the year. You might have realised how prices of hotels or flights vary depending on month or day of the week Well, so should your listing’s price.
In fact, you should be monitoring your listing’s price very regularly, if not every day. It is possible to charge more on weekends, holiday period such as Summer or Christmas or during special events taking place near your area for instance a festival or concert.
On the flip side, it is better to reduce your price during the low season such as January or February as guest demand is typically less but still ensures your generate maximum bookings.
Finally, you should think about offering some discounts to your guests, based on the length of the booking for instance.
It is hard to be on top of all of this, especially if you are working full time and have other commitments in your life. This is why at City Relay we take advantage of our internally developed yield management software, Outswitch, which evaluates seasonality, market demand and a range of factors to create an optimum price per night throughout the year to make sure your property is earning its full potential. Additionally, all the listings we manage are closely monitored by our team of experts who have years of experience in the local London short let market.
Becoming a host is quick and easy, simply click the button below and fill out your details to view your property’s earning potential!