What is a suitable nightly rate for a short term rental?

M

mandimoo

I have checked out the competition, the lowest price in the area is $78 per night, it isnt very nice, the low average is about $95 a night for a decent place. My property will only sleep 6 people however but mine will have features such as broadband, ocean views, dishwasher, close proximity to the beach, use of tennis court and swimming pool and have really nice furniture & modern appliances. I dont want to price myself out so that we get hardly any bookings, but I dont really want to be the best deal in town and be run off my feet cleaning the place either and the furniture getting destroyed by riff raff (yes Im a judgemental snob) .. I think this is an important decision and I am annoyed that I havent made up my mind yet! In dollar value, how much more do you think those extra features are worth? Thanks for your input this is all new to me :D
 
Yes that's true, well do you think that it will still get booked during peak periods if it is on the higher side of average? I have read people saying that peak periods are a given before but I dont know how true that is
 
mandimoo said:
I have checked out the competition, the lowest price in the area is $78 per night, it isnt very nice, the low average is about $95 a night for a decent place. My property will only sleep 6 people however but mine will have features such as broadband, ocean views, dishwasher, close proximity to the beach, use of tennis court and swimming pool and have really nice furniture & modern appliances. I dont want to price myself out so that we get hardly any bookings, but I dont really want to be the best deal in town and be run off my feet cleaning the place either and the furniture getting destroyed by riff raff (yes Im a judgemental snob) .. I think this is an important decision and I am annoyed that I havent made up my mind yet! In dollar value, how much more do you think those extra features are worth? Thanks for your input this is all new to me :D
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what area will it be in and how nice is it?

a friend of mine has a renovated i think duplex cottage on a small block in cottesloe and from memory he charges $200-$300 a night and sleeps only 4 or 6. last i checked he was pretty much booked out for 2-3 months in advance apart from a couple of days here and there

dont undersell the place if it is really nice, there is currently a pretty big increase in demand for these sort of places particularly from interstate visitors because hotel rooms are simply too expensive
 
Yeah it isnt going to do well for people who want close to the city, it is more for people who live in perth or even people who live in mining towns visiting family (we know lots)
 
Ausprop said:
yeh but it is mandurah Sanj and the demand hasn't spread that far
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ah ok didnt realise that. a different ballgame i suspect

btw my brother recently had to rent an east perth townhouse for his employee who was flying in as there were no hotel rooms available and the owner had installed some sort of pin number entry to the place so there was no need for him to meet her prior or onsite to get the key. ive got no idea of the pros and cons or costs but it could be worth considering if it means you do not have to drive for 30 mins just to drop a key off. i suppose it might be a good idea to meet the people renting it anyway
 
I suspect the demand for short mid week stays in the winter in Mandurah will be pretty low.
Just pick a price, list the place, and see what happens. If you get no bookings, it's too high. If you get heaps of bookings, it's too low.
You'll have a winter price and a summer price.
I'm going to put the price of my place up for summer. I'm full for most of this winter at the price I'm charging now, so it's too cheap.
I'm also going to make it a three night minimum instead of the current two nights.
It's not a big deal to fiddle with the prices etc once the place is up and running.
Scott
 
Thanks Scott : )
The complex is actually secure so they will require the key card thing just to enter the gates and building, I live on the way to this place though so was thinking of installing a pick up point in our front entrance as we have double entry, maybe a safe and change the code each time obviously, its either going to be that or will have to pay a local agency to hold keys for us but they are not open on weekends
 
I'd be interested to see if you can get a better return on average than long term rental. I'm just concerned the market is a bit thin there
 
It would be ideal if you could find a local person to hold the keys. People having to find you to get the keys and then go and find the property will be a bit of a barrier.
A local person to do the occasional clean would be good, too. With a 30 minute trip for you (and three kids to wrangle) back to back bookings will be a killer for you.
If the place has the potential to sleep 6 people, I'm not sure I would be doing rentals for two nights, either - too many beds to change for too little income.
 
depreciator said:
It would be ideal if you could find a local person to hold the keys. People having to find you to get the keys and then go and find the property will be a bit of a barrier.
A local person to do the occasional clean would be good, too. With a 30 minute trip for you (and three kids to wrangle) back to back bookings will be a killer for you.
If the place has the potential to sleep 6 people, I'm not sure I would be doing rentals for two nights, either - too many beds to change for too little income.
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wuss :D I use to do A 300km each way changeover for a dozen or so people, back to back. get up, arrive there for kick out at 10am, go mad for 4 hours and have it ready by 2pm and if you are lucky a little later, roll home at dark (or sometime close to midnight if it went wrong, like the time they lost the key and i lost the spare). Quite rewarding really.
 
Depreciator I am planning to have a 'gap day' between each booking to give me time to arrange this so I can go clean when my hubby is at home with the kids because ur right it would kill me. Unless ppl are leaving on a Friday I might call in babysitting favours from a relative ;)
Ausprop - will message u if I need a lock box, Im not too concerned about getting more income than long term rental as when we put the offer on the place there was a lady wanting to pay 6 months rent in advance of $400 a week for a 12 month lease, which is really good for Mandurah - however we declined because we really wanted to buy it for ourselves so if we couldnt use it at all, well it would **** me off, so I do know that its not likely to be a great moneymaker of an IP, but I also have confidence in my marketing abilities :)
 
no worries, am interested in this because i was thinking of doing it on my own but they aren't waterfront liek yours and I would have to get a fairly high occupancy to break even. what I need to do really is wrap them / lease to buy/ but I just need to pull a finger out and figure it out
 
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