Discussion in 'Rentals - Vacation' started by Philip_Atlanta, Aug 1, 2005.
To others who rent their house, are you planning on raising the rates for 2006?
I haven't put it in stone, but I usually go up at least 10%. Overhead goes up at least that much. I don't want to gouge, but I want to keep up with the overhead. ?? I am interested to hear from you and everyone else re rental pricing for 2006.
Well, the reason I ask is historically the rents go up each year. However; this year with what I imagine will be increased competition and to a lesser extent the hurricances, I'm considering keeping the 2005 rates. On the flip side, I'm pretty much booked - so economics would tell me I can raise the rates and still get a good occupancy rate.
What we have thought about doing is those that book with us this year, for next year, giving them the 2005 rate. We typically raise our summer rate between $100-$200 and our other rates $100 year but I also give a $100 discount to returning guests so it typically evens out for them.
Thanks for bringing this up. Our place rented out so incredibly quickly this year that I'm wondering if we *should* up the rate, despite what our rental management company says.
as a renter that lives for her week in florida I like this idea best but I know that is not always the best "plan". Just glad there are so many choices that we can usually find one!
Yes, we are raising our rates. There are less rentals west of here because of storms. There are more people from the mid west coming done here. New home owners in the area have paid much more for their homes than we did, so they will have to charge more.
If you increase your rate by 10% and book one less prime week; your total yearly revenue will still be more than last year.
Lastly, this is still a business; the rates will continue increase until people say no. We have never had a vacancy from Memorial Weekend thru the 2nd week of August . We also hold the rates for our returning guests. We have given some of them 3 year old rates.
Our places are renting quickly and fully -- economics 101 indicates they are therefore underpriced. We'll be raising rates (again) and by more than 10%.
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