Rental Rates - What Is My Property Worth?

This article provides general information about rental rates for holiday rental properties and should not be relied upon for exact pricing.

Property owners and manager often ask "what is my property worth?" when thinking about listing a holiday rental property for the first time online.

What is the Long Term Rental Rate?
A good place to start is the Long Term Rental rate which you would achieve over 12 month period.  Furnished properties will be worth more than the long term rental rate because of the furnishings included and the convenience of short term lease period.

Do rental rates vary?
Yes, rental rental rates can vary depending on a number of factors such as:
> length of stay
> time of year
> group type
> inclusions such as utilities or servicing
> special events

The longer the rental term in a furnished property the closer the rate will become to the Long Term Rental rate.  A general rule of thumb is to double the long term rental rate for short stays.

For example, a property worth $400 per week on a standard rental may be worth around $800 per week on a short stay basis. 

Seasonal Pricing
Seasonal price adjustments or special events may require variations to the rental rate. Over the Christmas and New Year period rates may vary up to 3 times the standard rate or greater when compared to off peak periods.

Group Type
An additional surcharge may be appropriate for large groups to cover utility usage.  Smaller groups may receive a discount eg. a single person staying in a home.

Competitor Pricing
Check out alternative accommodation on the internet.  You should be familiar with the rates your competitors are charging.  Consider the unique characteristics of your property and try to upsell your property so the rates are good value rather than competing on discounts and last minute pricing.

Incremental Pricing
As you become fully booked you may be more ambitious with your rental rate and adjust your rate downwards as you get closer to the vacant period.  Follow your conversion rates and the lead time between bookings and arrivals. You may also try Hot Deals to move a property last minute.

Over time you'll develop a good feel for the rental rate with feedback from customers.

Professional Appraisal
If you are unsure what rental rate to charge, perhaps contact a specialist furnished property manager who can assist you with an appraisal.

Please note: www.rentahome.com.au is unable to provide any specific guidance on rental rates or pricing.