Could use some help re requests for discounts

Discussion in 'Rentals - Vacation' started by Mermaid, Sep 17, 2006.

  1. Mermaid

    Mermaid picky

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    How do you handle this one? I've been getting a fair number of requests for discounts on the rental rates now that it's getting to low season. I'm happy to offer a discount in some situations--for example, when someone is staying across seasons. I have one renter who's arriving in "summer" and departing in "fall" so I split the difference between the two rates even though they were staying more in summer than fall. I don't mind doing that.

    However, I honestly can't offer a discount for everyone who asks. The rental income covers precious little in the scheme of things, and I also feel that I've priced my rates fairly to start. So what I need help with is some diplomatic wording for telling people I can't accomodate them.

    How do the rest of you handle this? Help!!
     
  2. imasunbum

    imasunbum Beach Fanatic

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    Mermaid - Complete honesty in a tasteful way, which you did in your second paragraph above. You state fairness. You state your need to cover expenses. The renters know why you rent. I basically tell the ones that ask me exactly what you said above and when I do they usually say something like, "I understand, but thought I would ask".

    I would tell them this and without skipping a beat move right into how much you are looking forward to renting to them and how much they are going to love the area, etc.....

    Good luck!
     
  3. Rudyjohn

    Rudyjohn SoWal Insider

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    I've never had the nerve to ask but they always say you should ask for a discount on just about everything you buy. So, that's what they're doing, being savvy consumers.
     
  4. imasunbum

    imasunbum Beach Fanatic

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    You are right Johnrudy. Can't blame them for trying, however, like you, I have never asked either.

    Ummmm...maybe we should give it a try.
     
  5. Mermaid

    Mermaid picky

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    I like what you said in the last paragraph. It might make them see that even at a non-discounted rate, what they're getting is still great value for the money. That's a very good point to make, thanks!
     
  6. tivoli

    tivoli Beach Lover

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    Mermaid - Today's Wall Street - Your Money Matters Section -
    After the Peak - Vacation homes can still generate rental income
    in the off-season-if your're creative
    Article by - Daisy:wub: Maxey

    States....Drop your price, but not too far.....package it.....long term......
    etc., etc., etc.......

    Great article about rental property incentives.........thought it might be
    of interest........
     
  7. spinDrAtl

    spinDrAtl Beach Fanatic

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    If your off season rates are already priced fairly, you should be able to sell them on that. We price very reasonably in the off season, but begin to entertain discounts as dates get closer and are still unoccupied.
    I often tell them that 'x' days in advance, the price is firm but very reasonable and then let them know that if days are still available 'y' days in advance, I would be willing to negotiate. You have to know what your competition is doing as well.

    Also, based on having had my place for a while, I know what time periods in the off season rent more often and depending on demand, typically decide that some rental income is better than an empty night. However, you have to be comfortable with what $ figure you decide to accept.
     
    Last edited: Sep 18, 2006
  8. Paula

    Paula Beach Fanatic

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    Hi Mermaid:

    I think each interaction you have with a potential renter is the beginning of a relationship. So, I would respond honestly with good will. For example,
    "thanks for your interest in our ... and we'd love to hve you stay at our place"
    "We can offer you ... off at most because, as you can imagine, we also need to cover our expenses."
    "If it doesn't work out this time, we hope you stay with us in the future. We'll take good care of you!"

    Maybe you could offer them an extra night if you don't anticipate someone else coming in. I have a few repeat guests in the fall and I let them stay an extra night (or check out late) if no one is coming in. I tell them I can't confirm the late check-out or extra day until closer to their arrival date, but there's usually a good chance I can give it to them.

    I'm happy to reduce rates in the off-season as long as I get my expenses covered. I like having someone in the cottages because they're there to notice any problems -- I don't like them sitting unattended for too long. Our agency checks in regularly and there are people in the neighborhood to notice if anything is going on, but that's not the same as someone actually using the equipment, hearing the sounds of the equipment, etc.

    Best,
    Paula
     
  9. STL Don

    STL Don Beach Fanatic

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    Thanks for the mention of the article--interesting read.
     

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