Setting vacation rental rates for your furnished rentals 2009?  If you are fully booked and do not need any vacation rental inquiries you can stop reading now.  If on the other hand you are feeling increased competition from new vacation rentals coming to the market or the downturn in the economy is slowing your vacation rental business you may want to continue?

This article is not about negotiating your posted rates or letting renters chisel your rates below what your rental is worth.  It is however, about setting your rates correctly and in light of the economic slow down, just being aware of your competition and not pricing yourself out of the market.

The title to this GoFurnished.com posting is “80% of $100 is better than 100% of O” refers obviously to the fact that 80 percent of a hundred is survivable, is something to stem the tide, is rental revenue over the short term but 100 percent of ZERO is still ZERO.  When you look a the competition for vacation rentals of like, kind and quality are you in the game?  On the flip-side you may be too low – not likely – but you could be giving away your potential revenue.  Some of the PIE is better than NO PIE at all.

In simple economic theory consider Supply versus Demand.  Are there 50 identical properties in your same condo association or vacation rental community?  Do you have more inquiries than you can possibly book?  It is an age old dilemma to fill rental vacancies.  Do you have those 2 stubborn weeks every year – you know the one’s that rarely get rented for some reason?  It’s too hot or too cold – school is in – whatever the reason you may want to generously discount those weeks that you would normally collect the big “O” goose egg and generate some revenue.  Wouldn’t a booking for 80% of your normal rate be better than 100% of nothing?  Certainly do not give away your rates but look to set your rates to maximize income, increase occupancy and attract the right visitors.  Best regards from all of us here at Furnishedhomes.com!

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