Setting Rates: Tahoe Vacation Rentals
March 26th, 2008 by Jeff SchnaubeltYou’ve furnished your vacation home, installed a hot tub, stocked the pantry, and added a killer movie collection. Those were the easy parts. Now it’s time to think about price. Pricing your vacation home is no trivial matter – finding the optimal price, and adjusting it for the seasons & holidays is critical to the profitability of your vacation rental.
Factors to Consider
Setting a price for your home involves analyzing the market, considering the time of year, and examining the competition. This can be difficult for homeowners who aren’t highly familiar with industry standards and market trends. It’s also one reason why you might want to trust a property management company to determine the best price for your home. Lake Tahoe Accommodations, for example, has years of experience calculating optimal rental prices for vacation homes in the Lake Tahoe area. Here are just some of the things we consider before putting a price tag on a rental home.
>> Seasons
At the present time, Lake Tahoe Accommodations has two different seasonal rates. Our lowest rates are during the spring & fall seasons, which we consider the low season. Higher rates are charged during the high season, which includes the summer and winter months when the number of vacationers visiting the Lake Tahoe area is at its peak.
>> Holidays
Guests expect to pay more during busy holiday times. Just how much rates should be adjusted depends on the holiday.
We have 3 holiday levels.
Level 1 holidays are priced about 20% higher than our high season rates. These holidays include:
● Presidents Day Weekend
● Martin Luther King Junior Weekend
● 4th of July Weekend
● Thanksgiving Weekend
● Labor Day Weekend
Christmas in Tahoe demands a 50% premium, and is considered our level 2 holiday.
Level 3 is New Years, which is the most popular vacation period in Lake Tahoe. We double our base rates for New Years, and we usually have no trouble selling out - even with a 5-night minimum stay requirement.
Consider the Market
To determine an optimal rental price for your home, it’s necessary to find out what others who own similar homes are charging. Lake Tahoe Accommodations looks at rental prices for similar homes managed by us, similar homes managed by other companies in the area, and similar homes offered by individual homeowners. Fully considering the market allows us to set a price that is competitive and profitable.
A Final Note: Specials and Adjustments
Price adjustments may also be necessary to increase your bookings. We regularly monitor prices and make adjustments as the market changes.
Finally, if you’re looking for an easy way to attract more guests, you can always offer a "Special" once in a while. Running a limited-time special rate provides your property additional exposure, and it's a great way to encourage potential guests to stay in your home, because everyone like to "get a deal". For more information on this, see Vacation Rental Specials.
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