🏠3 Top Short Term Rental Opportunities + News & HowTo's | #021

Today’s Insights

• Top Investment Properties

• Knowledge Rundown: 3 Part Series on Maximizing Your Short Term Rental Profits - Part 1: Effective Pricing Strategies

• Hot News: Luxe Mountain Real Estate Is on the Rise: The Top 3 Towns— With Affordable (and Aspirational) Homes

• Productivity: 5 Short Term Rental Tools to boost your productivity for Navigating the Business Side of Short Term Rentals.

New Releases

2558 Sparkling Star Ln, Knoxville, TN 37931

A RARE FIND IN THE KARNS COMMUNITY!!! This Home Features 4/5 Bedrooms, 2.5 Bathrooms, Master is Located on the Main Level, Formal Living Room/Dining Room, Family Room w/Fireplace, Large Eat-In Kitchen, Huge Bonus Room, (or 5th Bedroom), Laundry Room, 2 Car Garage, Level, and a Fenced-In Backyard W/Covered Deck. Subdivision Amenities Include a Swimming Pool and Playground Area. It is Situated in a Convenient Location to Schools, Shopping, Dining and SO MUCH MORE!!

🏠Quick Stats:

• $499,900

• 5 BR / 3 BA

• 3,000 sq/ft

💰Projections:

• Average Daily Rate: $382

• Occupancy Rate: 59%

• Projected Revenue: $82,700/yr

• Projected Operating Expenses: $26,600/yr

• Projected Net Operating Income: $56,100/yr

• Projected Gross Yield: 16.5%

Price Reduction

3078 Altruria Rd, Bartlett, TN 38134

Come see this adorable Bartlett home with all its upgrades! 3 beds & 2 baths all on one level. Both bathrooms have had complete renovations, just look at that primary ensuite bathroom! Kitchen has new granite tops. Separate breakfast rm & separate dining rm. Living room has new custom decorative shelving & cabinets with granite tops. Large separate den with gas fireplace is great for entertaining the entire family. Private back yard with large deck & separate storage shed. Don't miss this one!

🏠Quick Stats:

• $315,000

• 3 BR / 2 BA

• — sq/ft

💰Projections:

• Average Daily Rate: $206

• Occupancy Rate: 53%

• Projected Revenue: $39,900/yr

• Projected Operating Expenses: $12,400/yr

• Projected Net Operating Income: $27,500/yr

• Projected Gross Yield: 12.7%

Over 90 Days + Price Reduction

24229 Pepper Ln, Orange Beach, AL 36561

MOTIVATED SELLER is offering a fantastic DEAL!!!! $25K in closing concessions, fully furnished and an established rental in Summer Salt! Don't wait for the next phase because you can rent this fully furnished coastal home now. Enjoy this tastefully decorated new home that is walking distance to shopping, putt putt golf and restaurants and 1/4 of a mile to the newly opened Romar Place Beach Access. Stainless steel appliances, quartz countertops, painted cabinets, LVP, 5 and burner gas stove. All bedrooms have their own bath plus a full bath on the main floor. Don't wait - this gold fortified, smart home, rental machine is a must see! Buyer to verify all information during due diligence. The best deal in Summer Salt!!

🏠Quick Stats:

• $699,000

• 3 BR / 4 BA

• 1,507 sq/ft

💰Projections:

• Average Daily Rate: $411

• Occupancy Rate: 51%

• Projected Revenue: $76,300/yr

• Projected Operating Expenses: $24,300/yr

• Projected Net Operating Income: $52,000/yr

• Projected Gross Yield: 10.9%

Knowledge Rundown

Maximizing Your Short Term Rental Profits

Part 1: Effective Pricing Strategies

Effective Pricing Strategies: Mastering the Art of the Dollar

Alright, folks, let’s talk about something that sounds boring but is actually super exciting once you dive into it: pricing strategies. Yes, I'm talking about the magical art of setting the perfect price for your short-term rental. Imagine yourself as a modern-day alchemist, turning the lead of your property into the gold of maximum profits. Sounds fun, right? Let’s jump in.

Dynamic Pricing: The Roller Coaster of Rent

First up, dynamic pricing. Think of this as the pricing roller coaster where your rates go up and down based on demand, similar to how airlines and hotels operate. The idea is simple: when demand is high, your prices go up; when demand is low, your prices go down.

To get this right, you need a dynamic pricing tool. There are a bunch of these out there – tools like Beyond Pricing, Wheelhouse, and PriceLabs. These tools analyze market trends, local events, seasonality, and even your competitors' prices to suggest the optimal price for each night. Imagine having a tiny, super-smart economist in your pocket, constantly tweaking and optimizing your rates to ensure you’re making the most money possible.

Seasonal Adjustments: Riding the Waves

Next, we have seasonal adjustments. This one’s pretty intuitive – you know that beach house is going to be way more in demand during summer than in the dead of winter. It’s all about understanding the ebb and flow of demand throughout the year.

To ace seasonal pricing, you need to do a bit of homework. Look at your booking data from previous years (if you have it), research local events that might drive up demand, and stay tuned to general travel trends. Holidays, school breaks, and local festivals can all significantly impact your booking rates. Use this information to adjust your prices well in advance, so you’re not caught off guard by the seasonal waves.

Competitor Analysis: The Spy Game

Now, let’s talk about the spy game – competitor analysis. This is where you get to play James Bond, gathering intel on what similar properties in your area are charging. The goal is to make sure your prices are competitive while still maximizing your revenue.

Start by identifying your main competitors. Look at properties similar to yours in terms of location, size, amenities, and overall vibe. Then, keep an eye on their pricing. There are tools like AirDNA and AllTheRooms that can help you gather this data. Once you have a sense of what your competitors are charging, you can position your pricing strategically. If your property has extra perks or a unique charm, don’t be afraid to price it a bit higher. But if you’re noticing that your competitors are consistently booked while you have vacancies, it might be time to reevaluate your pricing.

Putting It All Together

So, what’s the secret sauce? It’s a blend of these three strategies, constantly fine-tuned and adjusted. Dynamic pricing tools will handle the daily fluctuations, seasonal adjustments will prepare you for the big waves, and competitor analysis will ensure you’re not pricing yourself out of the market.

Remember, pricing isn’t a set-it-and-forget-it task. It’s a living, breathing thing that requires attention and tweaking. But once you get the hang of it, you’ll see your booking rates soar and your profits follow suit. So go ahead, channel your inner economist, and start turning that pricing lead into gold.

Hot News

Luxe Mountain Real Estate Is on the Rise: The Top 3 Towns—With Affordable (and Aspirational) Homes

Luxury real estate conjures up images of penthouses in big cities or beachfront mansions—yet, three of this quarter’s top 10 luxury markets are in mountain communities.

The smaller, relatively affordable mountain markets with strong local economies include Pittsfield, MA; Asheville, NC; and Coeur d’Alene, ID, according to the latest Wall Street Journal/Realtor.com® Housing Market Ranking.

“These mountain towns with easy access to outdoor recreation offer a high quality of life away from the hustle and bustle of large cities and the coast,” says Realtor.com® senior economist Joel Berner in his analysis. “With interest rates hovering near 7% for most of 2024, a desire for affordability can be seen even in the luxury housing segment.”

Continue Reading → Here

Productivity

5 Short Term Rental Tools to Supercharge Your Productivity for Navigating the Business Side of Short Term Rentals

1. Guestly: This platform streamlines operations with features like automated messaging, dynamic pricing, and channel management.

2. QuickBooks: Efficiently manage income, expenses, taxes, and generate financial reports to understand your business's performance.

3. Smoobu: Streamline communication with guests, automate messages, and manage inquiries efficiently.

4. Beyond Pricing: Optimize your rental rates based on market demand, seasonality, and competitor pricing.

5. Jobber: Efficiently schedule cleanings, maintenance, and repairs, ensuring your property is always ready for guests.

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