Do you have a Fort Lauderdale property that isn't bringing in the revenue you expected? It may be time to give the vacation rental model a try.
Between the strong tourism industry in Fort Lauderdale and the frequent turnover of short-term renters, you can use dynamic pricing to maximize vacation rental profits all year round.
What are the vacation rental pricing strategies we use? Read on for our top vacation rental pricing tips.
Be Honest About Strengths and Weaknesses
Short-term renters want amenities that will make their trip more convenient and more enjoyable. They may prioritize properties with:
- A great location (e.g., close to the beach or the downtown area)
- Multiple beds and baths for a large group
- A full kitchen
- Leisure-based amenities like a pool or hot tub
What if your property doesn't check many of these boxes? To maximize your occupancy rate and holiday rental income without a flashy listing, you'll need to stick to the lower side of Fort Lauderdale pricing. As you grow your profits, consider making value-add changes or offering more complimentary amenities like free coffee, toiletries, or refreshments.
Update Your Comps
The average cost of vacation rentals will fluctuate from season to season and year to year. If you're using a static approach, you may find yourself over-charging or losing revenue.
Once you've taken stock of your property's features, it's time to redo your comps. Look at other vacation rentals in your neighborhood, narrowing down your options to properties that most resemble yours.
Don't forget to consider alternative accommodations when assessing how much people are spending to visit the area. An estimated 20 new hotels will open in Fort Lauderdale by 2026, and you don't want to lose guests to more affordable hotels.
Don't Forget Peak Season Pricing
We tend to assume that summer marks the peak tourism season around the nation, but this isn't the case in Fort Lauderdale. Down here, we see our influx of visitors spike between December and April, and it's already time to start thinking ahead.
Maximizing peak season profits is about balancing high occupancy with high profits. Offer an early bird special to anyone willing to book their peak season trip by late summer or early fall. Consider imposing three to four-day minimums to avoid losing weekend profits to one-night visitors.
As always, keep an eye on what your competitors are doing. While peak season is a great time to increase prices, you don't want to outprice your competitors so much that you lose traction with renters.
Get Vacation Rental Pricing Strategies with PMI Premium Services
If you own a Fort Lauderdale property that isn't meeting your expectations, it's time to consider better vacation rental pricing strategies. A dynamic approach to year-round pricing can help you improve occupancy rates while maximizing your profits.
Running a vacation rental isn't as simple as investors might expect. That's where PMI's nationally tested vacation rental management services come into play. We combine the latest technology with a people-first approach that renters love.
Contact us to learn how much you could be making with PMI Premium Services.
