Surely you have sometimes wondered what is the ideal price to rent your home for holidays. Well, in this article we will try to teach you how to calculate it and have your house rented as much as possible.
01Ideal price for renting your house for holidays : Influencing factors.
A number of factors exist that must be taking into account when trying to find the ideal holiday rental price for your house. Among the most important are the location , the condition of the property and the additional extras that the property has to offer, such as internet, pool, air conditioning, leisure possiblities.
We are going to classify these factors to help you decide the ideal price in which you can rent your property for holidays.
Undoubtedly this is one of the most important factors that clients take into account when they are selecting a house in which to spend their holidays.
If the client is looking for a country house in which to enjoy the rural tranquillity , good access and proximity to the nearest village will raise the value of the property.
If the client is looking for a village house , the property will have more value if it is central and if we are are talking about a coastal village, the closer to the beach the better.
Although the clients are on holiday , there are always going to need certain things and because of this when it comes to selecting a house the equipment in the property and the infrastructure in the surrounding areas will be a consideration. The more daily needs your village offers, the more value your property will have. .
- Possibilities for recreation
This is also a factor highly valued by the clients and has enormous influence when selectin g an ideal price when renting your house for holidays.
During holidays the priorities generally are to relax, disconnect from the daily routine and enjoy yourself, for this reason a house which is a reasonable distance from bars , restaurants , golf courses etc will have a higher value, but always take into account that we are talking about a reasonable distance because if it is in the middle of an area where there are many noisy bars and restaurants the price will be lower.
Some clients look for properties in which it is not essential to have a car, so a property that has a good transport services from the airport and from the property to the beach, bars, restaurants .... This type will have a higher price than one that necessarily depends on a car.
- Range of properties on offer in the area
The amount of properties on offer in a certain area can be a positive or negative factor depending on the type of client. An area where there is a very large range of properties on offer can be interpreted as being a good thing as the demand for properties has caused the amount available to increase ; but, on the other hand, it can also be interpreted as the area is too crowded touristically and therefore, if the client seeks tranquility, it can have an negative influence .
- Needs of the owner
Logically this personal factor logically must also be taken into account when deciding a price for rent; but it should not be a priority. Even if you really need to rent , it is not advisable to price it too low as this may make the client distrust the quality of the property. If, on the other hand there is no need to make the property profitable you should not make the price to high as this will mean you will not have many reservations and clients may well think there is some hidden reason why the property has no reservations. Well, although the need is high, it is not advisable to put a price too low that can make the client distrust the quality of the property. If, on the other hand, there is no need to and this may make prospective clients think that there is some hidden reason why it has few reservations.
- The client that you are looking for
It must be taken into consideration that the type of client who will spend their holidays in a property is related to the external factors mentioned in Part A. For Example:
- A property in or very close to places of leisure will attract younger people
- A property in or very close to areas where outdoor sports take place will attract lovers of sport and nature
- A property that is very well equipped will attract clients who want to spend a lot of time enjoy relaxing in the property
- Type of house
The type of house is the biggest factor which will influence the price of a property. Normally, taking into account that both are similarly equipped, a house in the country with private pool will have a higher value and apartments will have a lower value.
- Condition of the house
The condition of the house will influence the price proportionally : the better the condition the more the value ( always keeping in mind not stay within the market value). It is very important that the property is in good condition and, if it is necessary, make renovations
A property where renovations have been made both to give more additional services and offer more security will considerably raise the price obtainable.
- Furniture and household equipment.
Properties with furniture in good condition, decorated nicely and well equipped give you a much higher possibility of obtaining reservations. This is an interesting point, because the money you will have to invest will not be high and without doub will have an enormous influence on the price you can obtain.
You can find more useful information about this in our article "How to put my house on the rental market”.
- Extras such as pool, gardens, barbecue etc.
In each type of property whether it is a country house or a seaside apartment, the extras always influence the price. A country house with pool, gardens and barbecue will always have a higher price than one that does not have these and an apartment with community pool and gardens will also have a higher price that those which do not have these extras.
01Ideal price for renting your house: how to fix the price
Once you have evaluated all the aspects mentioned previously taking whatever time you need, analyze the market in the area and the consequences that the price you decide on will have. .
ATime to think about the price .
After you have taken into account all the above, our recommendation is not to rush and to take all the time needed to decide on a price and ,above all, try to value your property from an outside perspective, not as the owner , because as such , we all think our property is the best of all.
BMethods to calculate the price
- Analysis of the market in the area.
Take time to look on the internet for properties that are available in the same area which have characteristics similar to yours , the price they are being offered at and the amount of reservations they have. This will be a great help in selecting a price that will be within the market price range.
- Return of investment
The formula of return of Investment (ROI) is widely used to assess the profitability of an investment ( in real terms or in this case estimated) The formula is as follows: es muy usada para valorar la rentabilidad de una inversión (en términos reales ó en este caso estimados). La formula es la siguiente: ( Total return on an investment) - ( the cost of the investment ) If the result is postive you will gain and if it is negative you will not.
03Ideal price for renting your house:
Once you have set a price to rent, you should not forget about this topic. Analyze if you are receiving interest in the property, if you are getting reservations ... and act accordingly with this information. If the house is beautiful, it is well equipped, etc. and you do not receive reservations, then you must assume that there is a problem with the price, and this is usually that the price is too high.
Also every year, before starting to receive reservations, you should update the price based on the market trend or if you have made any improvement in the property.
This is our view on the subject of rental prices, but you can certainly help by contributing something. Have we forgotten anything ? Do you think there is something else that can help put a price on a rental? Well, tell us and we will introduce your suggestion with your name in this article.
And above all do not forget to share if you believe it is interesting. When we share the good becomes even better.