Revenue Management for Short-Term Rental Property Managers Made Easy
Most property managers believe that the only way to increase their revenue is by having more listings and getting more clients. But that is a common mistake! On this article, we will show you the reasons why.
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Let's take this three-room apartment in Madrid as an example
How do we know which is the proper price for every single day?
It's not the amenities or how big it is. The things that matter the most are:
- The rental price
- The search results monitoring (as we have to know on which page our listing is located)
- The current rental occupancy
- The market forecast
We have to know how booked this kind of apartment is going to be. And the way we do it is by having an algorithm that is fed by our bots that are scrolling Online Travel Agencies, such as Booking and Airbnb, to know which are the prices selected by the competition.
In the case of our three-room apartment, we are monitoring 342 similar rentals that match the number of rooms, guests that it can host, and the zone. On this example, we are looking in a 1 kilometer radius for similar listings, so when we know how many similar apartments are left and we know that the demand will be even higher, we can increase the price two times, even three times!
For example, for some particular day we are offering this apartment for $258 dollars. But there are other days that we can offer the same apartment for $830 dollars, for example. The reason is because the demand is higher than the supply.
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If you want to know if we can help you just book a call with us and we will check your apartments and help you explote your rentals to the max!
