Vacation rentals are one of the many ways you can make money in real estate.
Denver, CO, is a very popular tourist destination, so vacation rentals can be particularly lucrative here. With that in mind, making the best profits from your properties can be quite challenging.
Peak season is when you can make a good income, but it comes with complications. For example, how much should you charge when things get busy?
In this guide, we'll go over the key things you need to know for effective peak season pricing of vacation rentals in Denver. Let's get started.
Analyze the Local Market
Keeping up with Denver rental market trends is vital for your seasonal rental strategies. Having a good idea of what other property owners in the area are charging will help you price yours better.
If you're charging a lot more than others, you'll struggle to find guests. Conversely, if you charge a lot less, your properties could quickly get fully booked out, but you won't be maximizing your profits. Charging a suitable amount is crucial for making a good ROI.
Use Dynamic Pricing Tools
To maximize rental revenue, you may want to charge different amounts at different times. When demand is higher, you can up the price, and then you should lower it as demand falls.
Dynamic pricing tools can automate this for you to optimize your rental pricing at all times. This will allow you to take advantage of peak season demand while ensuring your pricing stays competitive.
Implement Minimum Stay Requirements
During peak seasons, you can require guests to book for a minimum number of nights. This will ensure longer reservations which will help increase your overall turnover. If people are only booking single nights, for example, you could end up having a higher vacancy rate, and you'll be getting hit with increased cleaning costs.
Offer Early Bird Discounts and Last-Minute Deals
Special offers can attract more renters, especially during peak season. Early-bird discounts will help you get more bookings far in advance which can give you peace of mind.
There will be times, however, when you have gaps that you need to fill quickly. Last-minute discounts can attract some travelers who are looking for something quick to help ensure you aren't losing money by having an empty property.
Enhance Property Appeal
If you want to charge more during peak season, you need to be able to justify it. You can do this by enhancing your property appeal.
Take care of any maintenance work that's needed, provide additional services or amenities, and upgrade your property. All of this will make it more appealing than the competition, helping you increase rent prices and attract more guests.
Effective Peak Season Pricing
These vacation rental pricing tips will help you increase your income, but implementing them isn't always easy. A professional property manager can help you with all of these and more so you can maximize your peak season pricing.
PMI Denver Metro is a full-service real estate asset management company serving Denver and the surrounding communities. Under PMI, we're a part of the fastest-growing property management company in the US.
Take a look at our short-term rental management page to find out more about how we can help you.
