In the short-term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast and happy holidays if you’re listening to this in real time I hope you guys are doing well out there wherever you are this week we’re going to dive in to determine whether or not you are pricing your short term rental properly are you getting the most revenue that you can there’s a lot of little factors that go into that there’s a lot of things that we can keep an eye out for to make sure there weren’t enough maximum revenue and we’re not leaving any money on the table I’m still learning in this industry I learned a lot every day at least I like to learn something every day and so I surround myself with with people they’re doing the same things as me and in a recent call with my mastermind group we had the founder of wheel house on and we discuss pricing and that will house is a dynamic pricing tool similar to price labs which I’ve mentioned in prior episodes in the one that I personally use so we broke down some really interesting data but also a way that we can make sure we’re not leaving any money on the table and that’s what I want to share with you this week so we have 3 demand factors that impact our short term rentals and thus impact the amount that we can charge for them all of the economy is based on supply and demand right so these are pieces of information that we need to figure out and so the 3 components of the demand for our short term rentals our number one seasonality and this changes by city by state by country anywhere across the world really we have seasonality now some places can stay pretty. Book 2 years through but it just totally depends so we want to be aware of this we want to know the seasonality of our properties where our of our locations there’s a website called whether spark which we’ll leave a link in the show notes but that brings up the seasonality trends for certain markets if you’re looking for new properties make sure and check that out so it’ll give you a good idea of the seasonality or the climate which you probably already know in your market but also give you tourism score and how that is affected by seasonality as well so that’s something good that you can check out and then the other thing you can do just depending on how long you’ve had to run all this just go back and look at historic occupancy so see where were things diving down I know a lot of my properties are in Memphis and around January February those are slow months now in Sacramento California things stay pretty steady so that is one big piece that impacts our demand now the second piece is day of the week when are your properties most booked for a lot of mine it’s usually on the weekend and that’s usually the case for a lot of urban areas vacation rentals or someone’s running for weeks at a time that’s probably gonna be a little different but we need to know this information so that we can adjust our prices accordingly or so we can have our dynamic pricing tool do it for us which as you know if you listen to prior process I highly highly highly recommend using a dynamic pricing tool I’ll leave a link for price labs which is the one I use and then we’ll house which is the one that we just discussed so day the week definitely has a big impact on your demand now what I do with my pricing tool is I have the weekends automatically adjusted they automatically increase in price so some books. On Friday compared to a Tuesday it’s going to be a higher average daily rate the third demand peace is events or holidays and dis can greatly impact the demand on our market and our prices so we need to be aware of what the big events are a good tip for finding this out if you don’t already know if your market go on ticket master if you’re next to event venues now if you listen to this in real time I know we still got a lot of code regulations going on so events unfortunately aren’t something that a lot of us have been going to but when they do open back up or if they are already opening a market fantastic go to Ticketmaster and check out what the most popular events are or when they’re going to be happening Ticketmaster only lists the biggest events they don’t do tiny little things because it’s just not worth it for them so you can find the biggest ones there and make sure that you are either adjusting your prices for those events or you are having your pricing tool do it for you automatically now I little tricky thing with the vans is that let’s say you’ve got a 5 day festival in your city that’s very common in a books up we don’t want someone to book one night of that right Jack up the whole potential for running all 5 days out of prime rates so use your pricing tool you can set minimum stays for specific dates so check that out if you haven’t already that can really make sure you’re not leaving any money on the table or **** up your calendar in the future so those are 3 big components of demand we’ve guides seasonality we’ve got day of the week and we’ve got the vents and holidays make sure you know your market and your considering those 3. The pieces. Where intermission thank you so much for listen in the podcast it’s been fun for me and I look forward to getting up so it’s out if you have a specific topic that you’d like us to talk about send us a comment and let us know you can send it to contact at rest methods.com and if you haven’t already subscribed and given us a review that would be greatly appreciated too and lastly if you know someone that you think would find benefit in this as well send it on over to help us keep growing and help us to get amazing content back to you without further ado let’s jump back into. Now how do we determine if our properties doing my whole you know if we’re beating the average for doing worse than it really just kind of overall how we’re doing we need to have some competitive Runnels to compare ours too so we can call this our comp said and there’s 2 things that we need to include one more looking for potential calms properties one first of all they need to be similar to our property so we need to be comparing apples apples we can’t take a one bedroom studio and compare it to a a 4 bedroom beach house we need to make sure were comparing the same so in terms of bed count in terms of amenities does it have parking doesn’t have a work space is the size similar so just make sure that you’re comparing apples to apples that’s the first thing and the second thing is proximity especially for in one of the cities that I recommend that aren’t super suburban or super dance we want to make sure that we’re within a good distance I would say from my properties you know maybe within a mile or a couple miles again this is going to depend on the density of the area that you’re in and also depends on the type of property so just make sure that you are comparing apples apples and you’re comparing properties within a similar area that are close to each other it’s not a bad idea to have maybe 20 cops 20 other properties you can put him in excel sheet you can put their average rates and cleaning rates down this is a good way to decide how much you should charge for cleaning rate as well maybe take an average we need to know how we’re doing against our competition and we want to consider those 2 things proximity and similarity a third piece that we really need to consider and I learned this one recently is called pacing and that is a. Centrally are are we running our rentals too soon are they are they getting book too soon are they getting booked too late so most markets are gonna have an average window of when most gas are making the reservations for me that’s about 7 days what happened in the past as I had a discount set to automatically start lowering my prices within like 3 weeks well really after looking into the data and knowing that the majority of my guests are booking within 7 days I was discounting the price for like 2 weeks before I even had the bigger part of my potential pool booking my rentals so I was just giving money away essentially so I’ve lowered that now so now instead of maybe starting to discount 3 weeks out I’m only discounting out 6 days 5 days 4 days eccentrics address so decide and figure out when your average guest is booking to make sure that you’re not discounting when you don’t need to be and that you are targeting your price increases or decreases tough fit whenever that average booking happens that’s called pacing pacing is basically the lead time how far out in advance someone’s booking your properties again I highly recommend using a dynamic pricing tool they’re super affordable price labs charges per unit less than 20 you know it’s like 13 Bucks a unit I think it might depend on how many you have we’ll house charges a small percentage I personally use price labs but I know lots of people that use both of them and using one of these tools versus not using that. Just make sure using one okay he just major using one they’re easy to plug and they’ll integrate with your B. and B. account or your VR BO accounts that make it really easy for you and they also have a lot of this data for you on the back in about your market to make sure that you are pricing your properties as best as you can you know the best hotels adjust their prices like every 3 to 5 minutes now their software is probably doing a lot of that but the best hotels have people that are monitoring the software to same with airlines we know those prices change all the time and the tools are here so let’s take advantage of them let’s use them hopefully those tips helped if you haven’t looked at your pricing lately go back and take a look hopefully you’re not charging the same amount every day and hopefully you’re using one of these pricing tools otherwise guaranteed 0 percent if you’re leaving money on the table so figure out those 3 demand factors in your market just to recap that seasonality day of the week and local events and holidays figure out how those are affecting your short term rental find some comms so you can compare yourself to the market and you want to do that by finding maybe 20 comms and you’re gonna find those based off approximately how far they are from your property and similarity making sure you’re comparing apples apples and then finally take a look at pace scene make sure that you are price seen your properties properly but at the right time so you’re not doing it too late or too early consider those things so hopefully boost your income and hope you guys have wonderful holidays and you’re doing well wherever you are in the world. So we just had our live virtual fan and I gotta say it was a blast as always we done to live events before and this was basically a replica except for we got to attend from the comfort of our own homes and the beautiful thing about doing a weapon or is it was easy to record so if you missed it jump over to rest methods.com forward slash virtual and you can get your copy we jam packed it full to the brim everything that I’ve found to be the most important setting up your short term rentals and making sure you’re earning maximum revenue in the highest occupancy but all while not giving up all of your time in creating passive systems so I give you all my resources we go over my actual properties case studies with pre and post code numbers and then my outlook in the future I think there’s a ton of opportunity so if you guys are just getting started or you have several properties already there’s no need to reinvent the wheel get all my tips and tricks things that I’ve learned and save yourself the headache and frustration just head over to rest message star forward slash virtual I know you’ll find a ton of value in it enjoy.

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