Running an Airbnb property is a way to make money. That’s undeniable. However, did you know there are common pricing mistakes that can cost you thousands if you get into this type of endeavor?
Let’s talk about some errors you’re likely to see and that you should do your utmost to avoid.
Not Keeping an Eye on the Competition
Whether you’re using Airbnb management, Bristol property owners, or you’re handling it yourself, one frequent way money is lost is if you’re not checking in on what your competitors charge. If you’re undervaluing your property, and another owner nearby is successfully renting out their property at twice your rate, it’s obvious that you’re not paying enough attention to the market.
Charging a Flat Rate
You should charge different amounts for different days of the week. For instance, a midweek stay should be cheaper than what you’d charge for the weekend. Those days are more in demand, so it makes sense that they’d command a higher price tag.
Minimum Stays That Are Too Short or Too Long
If you’re demanding that guests stay at your property for at least three days, that often comes back to bite you. You can easily end up with an empty property a few days of the week if you do that.
Be flexible with the bookings you accept. You can implement dynamic minimum stays. For instance, allowing guests to stay for a single night during off-peak times of the year is at least worth considering.
Using the Smart Pricing Feature
The Smart Pricing feature on Airbnb has its value, but you shouldn’t trust it implicitly. While using it seems like a no-brainer, it can set rates considerably lower than market value at certain times of the year. It takes a little more research and time to set the price for your property manually, but it often pays off in the long run.
Setting Static Seasonal Pricing
Setting your price for the entire year and then just forgetting about it usually saves you time, but it’s probably costing you money as well. There are times of the year when you should be able to get more for your property rental. Doing some market research and changing the price during peak times, such as when there’s a big sporting event or festival nearby, can increase your yearly profit substantially.
Comparing Only the Base Price
You need to compare what you’re charging to what other property owners are. What if you’re only looking at the base price, though, and ignoring the service charges, cleaning fees, and extra guest fees? The result will often be that you’ll price your rental too high. Take into account those extra fees to remain competitive.
Keeping the Price the Same After Getting Good Reviews
One final way you can underestimate your property’s value is by not raising the rental cost after getting positive feedback. One solid review might not be enough to justify raising your asking price, but after several five-star reviews, it’s time.