If you've got a great property in Hendersonville, North Carolina, you've made a wise choice.
It's a great city for both residents and tourists. As a result, you can expect to find many tenants eager to rent your property for a short term. But there's one catch: yours is not the only property available.
You have to find a way to attract the best tenants. You also have to find a way to maximize your rental income. This guide will cover short-term rental management pricing strategies you should know about.
Offer Monthly Discounts for Committed Residents
Some short-term residents might prefer to pay each month rather than commit to a fixed period. But with this strategy, you're always on edge as a landlord.
They may pay rent for one month and then leave before the next month. A great alternative is to offer a monthly discount if they commit to a longer period.
Let's say you charge $800 per month for rent. You can reduce this by $100 if a tenant signs a four-month lease agreement.
You must also price your property based on season. North Carolina has faced hurricanes and tropical storms in recent years. If you have tenants staying during hurricane season, you'll have to charge them a standard or cheaper price.
If tenants are staying during a non-tourist season, you'll have to charge standard prices. You may also have to charge lower prices than you normally would.
If you're charging during the holiday season, you can justify charging higher prices. However, be careful not to charge too much as you'll lose tenants to other landlords. You can even lose them to hotels.
Make sure you also assess your rental property's financial health. Whether you're charging higher or lower prices, you must ensure you're making a profit.
Market Research and Competitor Analysis
Market conditions will always change, and this is crucial for deciding your pricing. At times, Hendersonville will attract several potential residents so you can raise your prices.
But keep in mind that there'll still be dips in visitors and migration. Prepare in advance to charge lower prices.
You also have to engage in competitor analysis. You'll have to price your property within this range.
For example, let's presume you own a two-bedroom home. If other two-bedroom homes charge an average of $1,200 per month, you'll have to charge within that price range.
You can charge more, but you'll have to justify pricing. For example, you can charge higher prices if your property is in a more popular and exclusive location.
Don't hesitate to hire a property management company to help you with promoting your rental property and tenants.
Succeed With Short-Term Rental Management
Now you know how to succeed with short-term rental management for your Hendersonville property.
You can offer monthly discounts to committed tenants. You'll also have to price based on the season. Make sure you also conduct market research and study your competitors to determine pricing.
Of course, you can't succeed without a great property manager. PMI Blue Ridge has consistent five-star Google reviews from landlords like you. Be sure to reach out to us.