Listing your property on Airbnb is just one step towards ensuring good rental income. No matter whether you have many homes or need to make money from a single property, you have to be careful about the Airbnb pricing approach. Certain strategies are common, but there are other aspects that you need to consider. Here are a few suggestions for quick help on Airbnb pricing.
What determines the price?
Property prices in the rental sector are influenced by a few standard factors, and some of these remain the same, regardless of the platform. Airbnb offers great flexibility to property owners, especially when it comes to deciding prices, but before you take a call, you have to consider the aspects that actually influence the final price. These include
- Location – if your property is located in the outskirts, you cannot probably charge a price for a home that’s situated on a hilltop.
- Property value – Well-maintained and managed properties are always in demand. If your home is designed well and has been managed adequately, the rental prices can go higher than expected.
- Season – You have to understand the demand for a certain season, which largely determines the price that can be charged from the renter.
- Facilities offered – If you offer more than an average property in the same area or of the same value, you will get better prices and fill rate.
- Demand and supply – As in any industry, the prices are largely determined by the demand in a certain area/city for a particular season or month.
How to set the price?
As mentioned, Airbnb is a pretty flexible platform. There are three ways of determining the price of your property.
- If you are experienced enough, you can choose to change the price at your end. Check the factors that may influence the price, and you can be in complete control of the property listing. As obvious, you will have to change details and prices on your own, so this is a time consuming approach.
- Airbnb Smart Pricing- Airbnb offers this feature, where the hosts can decide on the maximum and minimum pricing, and based on the supply and demand information, the prices fluctuate for the property. Factors that may increase or decrease the price include occupancy rate, prices for competitors, special events, season and much more. Not all Airbnb hosts are happy with the idea, because this is an automated system, and therefore, errors are not uncommon.
- The third choice is to go for automate software tools that simplify the whole process of Airbnb pricing for hosts. The only downside is the added costs, but some of these solutions are incredibly useful and will ensure genuine and assured income by implementing the right factors that influence the price.
Understand your financial goals and the amount of time you can afford in managing the property, and based on that, you can take a final call. At the end of the day, you decision on prices depend on whether you want the maximum fill rate or maximized income on each booking.