How to price your listing
Set your pricing for your room or space. I recommend a few things.
- Look at other Airbnb listings in their area – as a traveler – to see what others are asking for their rooms or homes. Look at the daily, weekly, and monthly prices to get a good idea for a baseline price and adjust accordingly. You want to see if there are any places similar to your place. Find those places and what their nightly rate is. Then do the math and see if that pricing makes sense for you. take the day rate and multiple it by 31 – to get the monthly rate. Then think about your monthly costs. The cost of the mortgage, utilities, any extras like cable/wifi, etc. Then see does this all make sense for me to charge as a day rate. Then consider if you need to add in a cleaning fee. A cleaning fee is a one-time fee per guest booking. Once you get all that figured out – this is your baseline daily rate.
- Rule of thumb on renting a place out – monthly cost to rent out an entire house is 1% of the total value of the house. So if your house is worth 300k – you should be getting 3,000 a month – for the whole house. So if you have two rooms you are renting out and letting people use the rest of the house -can you earn $1500 per room per month? these are the calculations you have to make.
- Also – look in your area to find how much a 1 bedroom 1 bathroom apartment is renting for. How much is that a month? Your rooms should rent for that at a minimum
- Visit these sites and check out their rental calculators as well:
- www.mashvisor. com
- airdna.com
- clustrmaps.com
- zillow
