Your complete guide to setting and adjusting your rental property prices successfully

Welcome to the world of vacation homes, where pricing is not just picking a random number, but a science and an art that requires understanding the market and guest expectations. Managing a rental property calls for a strategic approach to pricing that attracts guests while preserving your profitability and your property’s reputation.

In any business, especially in vacation real estate, setting and adjusting prices is a challenging task. If the price is higher than reasonable, you may face low occupancy and guest expectations you cannot meet. If the price is too low, you may miss out on the full potential of your property and fall short of expected profits.

So: well‑considered prices lead to higher booking rates.

How can you ensure your prices suit your location and keep your property profitable? Whether you are a beginner or have years of experience, you can follow our five steps to learn how to set optimal prices, then adjust them to maintain a competitive edge.

1. Calculate your costs: the first step to a winning pricing strategy

Know your costs precisely

To estimate the ideal price, you must first understand your operating costs thoroughly. Account for maintenance, utilities, insurance, and taxes. Solid knowledge of these costs protects you from setting prices that lead to losses instead of profits.

It is essential to start by itemizing your property’s costs, because understanding them is the foundation of accurate pricing and ensures your prices stay above cost to avoid losses. Carefully calculated prices secure continuity and success in the vacation real estate market, and are the first step on the path to the profitability you aim for.

Reduce costs to increase profitability

It is also important to work on reducing costs as much as possible. To increase your profit margin per property, look for technologies that minimize manual work and improve efficiency.

You have multiple options for how to set prices, from fixed to seasonal pricing, all the way to dynamic pricing that changes with demand.

2. Market analysis: understand the market to price competitively

Evaluate local pricing strategies

Monitoring competitor prices and understanding market trends is essential to stay competitive. Use data to set prices that attract guests without sacrificing profitability.

It is important to know how your competitors set their prices, as this helps you decide whether you should change yours to remain attractive and competitive.

Adapt to market changes

Pricing flexibility enables you to adapt to shifting demand and seasons, and to use promotional campaigns during low‑demand periods to stimulate bookings.

The market is constantly changing, and the ability to adapt preserves your leadership in the competition. Use data and analytics to track trends and market responses.

3. Dynamic pricing: leverage technology to increase profitability

Make use of technology

Dynamic tools enable you to automatically adjust prices based on market factors, increasing efficiency and reducing the need for daily monitoring. Using modern technologies, real estate managers can access technological solutions that allow for quick adaptation to market changes. These solutions enhance the ability to offer competitive prices without the need for constant monitoring, helping maintain a high level of efficiency and effectiveness.