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7047 Views 11 Replies Latest reply: Jul 27, 2011 9:47 AM by theresa.light RSS
New Member 5 posts since
Mar 18, 2011
Currently Being Moderated

Mar 18, 2011 10:40 AM

Rental Discounts for multiple weeks

Hi, this is my first year of renting our beach home.  I seem to have trouble figuring out how much to rent for.  Actually, my question is if you rent for 2 or 3 weeks in a row do you usually give a discount? I know to charge the security deposit and rental charge, but does everyone charge a cleaning fee?  Also I have some interested in 3 months this fall.  I would think that would be a different charge. Do you ask all up front or monthly?  And again, the cleaning?  I have no experience in this. I am winging it.

Appreciate any help I can get....

Toni

  • Contributor 67 posts since
    Mar 2, 2011
    Currently Being Moderated
    Mar 18, 2011 10:52 AM (in response to newbie)
    Re: Rental Discounts for multiple weeks

    Toni,

    Great questions. I asked myself these same questions at first also. What I did

    was look at the other rentals in my immediate area, what they were charging, are

    they weekly or not, etc. I then looked at what I could get weekly vs what I

    could charge monthly. I tried the monthly at first, it seemed safer and easier

    but eventually moved into the short term weekend and weekly rentals. For me the

    weekly or long weekends brought in more rentals and ultimately a higher income,

    but this is specific to my vacation spot. Most go for there for the weekends.

    When I added up the monthly with my average nightly rate it didnt make sense to

    do it monthly. I always charge cleaning on each rental (weekly or less) but

    monthly I actually required the renter to clean it, pay for utilities, etc. I

    charged a one time exit cleaning at the end of their rental period. I offered

    them to pay for cleaning themselves if they wanted it. Typically if the arrival

    period is 30+ days away, we charge 250.00 non-refundable with the balance due 3

    weeks prior. Most do 30 days prior from what I see. As far as a discount, I

    might reduce the nightly rate by 25-75.00 per night from my posted competitive

    rate. I always had a minimum nightly rate I committed too. This helped because

    some will try to get you down from that. Stick to your minimum. If you need more

    help, you can follow my blog at www.myvrms.com/blog I try to discuss about

    everything an owner would be interested in knowing. NO sales tactics, not renter

    focused, only owner focused. Hope this helps! Good luck.

     

     

     

    Check out our condo on the slopes of Northstar;

    http://www.vrbo.com/152234

    Simplify the management of your rental!

    http://www.myvrms.com

     

    Checkout my biz facebook page

    http://www.facebook.com/myvrms

     

     

     

    Dava Trusner

    916-425-4858

      • Contributor 67 posts since
        Mar 2, 2011
        Currently Being Moderated
        Mar 18, 2011 12:35 PM (in response to newbie)
        Re: Rental Discounts for multiple weeks

        Good questions. I wouldnt only take 100% upfront if the requested stay is less

        than 3 weeks away. You might want to do 30 days. That is typically standard for

        industry. If the requested stay is 30+ days away I take 250.00 upfront. I would

        definetly consider doing a monthly rental in your non-peak times. This may work

        perfect for you. Its a great way to get it rented if thats what your seeing

        people ask for. Thats how I gauge it by what people are requesting then provide

        that based on demand. For monthly, I ask for the first month upfront, plus a

        deposit. Then monthly is due prior to the first if the agreement is for a few

        months. If its only for one month, take it all upfront. If its for two months,

        require one month upfront, the second month due 15 days prior. Make sure you

        have a rental agreement, specifying cancellation, responsibilities of utilities

        etc. I can send you one I used if you'd like. We can chat off-line if want more

        info. Id love to offer my experiences.

         

         

         

        Check out our condo on the slopes of Northstar;

        http://www.vrbo.com/152234

        Simplify the management of your rental!

        http://www.myvrms.com

         

        Checkout my biz facebook page

        http://www.facebook.com/myvrms

         

         

         

        Dava Trusner

        916-425-4858

  • New Member 16 posts since
    Apr 1, 2011
    Currently Being Moderated
    Apr 8, 2011 1:37 AM (in response to newbie)
    Re: Rental Discounts for multiple weeks

    Hi Newbie,

     

    We use a monthly rent for long stays.  We do not give further discounts than that. We had someone rent for almost two months in Dec/January and another party has just rented our place for 2 months in 2012. In both cases we just offered the monthly rate. We have gone the vacation rental route because it generates more revenue for us, but it also generates a lot more work on our side. So doing all the effort and then giving a huge discount for longer term renting would not make sense to us!

     

    We do ask for deposit and the full amount to be paid 2 months in advance. 

     

    I believe the cleaning fee depends on the area.  Here in Oahu most people charge it, but we don't because we feel it gives us an edge and most people tend to be more careful (there is a full discussion about cleaning fees elsewhere in this community:

    http://community.homeaway.com/message/3398#3398).

     

    Aloha,

    ~Eva

  • sfvacationhut Community All-Star 643 posts since
    Dec 31, 2010
    Currently Being Moderated
    Apr 19, 2011 3:28 PM (in response to newbie)
    Re: Rental Discounts for multiple weeks

    We offer a weekly rate .. and if you stay 3 weeks, you get the 4th week free.

     

    The 3-week rate is actually very similar to our monthly rate.

     

    We ask for a $250 reservation deposit up front.  This converts to a security deposit upon the guest's arrival.  It is refunded via personal check in the mail or PayPal, after the guests' departure.

     

    We have an Installment Plan for payments.

     

    50% of the Total Bill amount is due 28 days prior to arrival.

     

    The remaining 50% is due 14 days prior.

     

    This allows time for the check to clear (if they paid by check), before their check-in.

     

    We prefer payment by PayPal or personal check, since there are no fees for us.

     

    We only offer our Payment Installment Plan for people paying with PayPal or personal check.

     

    We accept credit card, too.  However, for credit card payments, the full amount is due up front. 

     

    We find that demanding the full payment up front, for credit cards, really discourages people from using a credit card.  We are very happy about that! 

     

    There is no reservation deposit for credit cards ... since they have already made the full amount of the payment.  The security deposit is an "authorization" on their credit card, meaning the funds are set aside ... and a charge is only made if there were to be a problem / damages / etc.

     

    The cancellation policy is no refunds if the cancellation is less than 30 days prior to arrival.  We encourage our guests to buy travel insurance for protection in the event of cancellation.

  • New Member 10 posts since
    Mar 30, 2011
    Currently Being Moderated
    Jul 27, 2011 9:09 AM (in response to newbie)
    Re: Rental Discounts for multiple weeks

    We offer a discount to those who book multiple weeks. Normally if it is a 2-3 week rental I will discount the rate by taking out the cleaning fee that is already built into my rates. However we do have someone who rents 3 months from us and they usually get a different discounted rate. All we charge is a deposit, tax and rental fee. At time of booking we ask for a signed contract and deposit to reserve the condo. Then they must pay the remaining balance 60 days before they arrive. If I book our condo less than 60 days from date of arrival all funds must be paid at time of booking.

  • thaxterlane Active Contributor 779 posts since
    Jul 27, 2011
    Currently Being Moderated
    Jul 27, 2011 9:46 AM (in response to newbie)
    Re: Rental Discounts for multiple weeks

    We offer a minimal discount for multiple weeks as we can easily rent individual weeks at our full rental price.  We include the house cleaning in our rental rate.  We do not charge any other fees; I think it's less confusing to build your fees into your rent.  A list of fees often strikes me as confusing or excessive - when I travel I tend to rent properties that have an all inclusive rental - one figure, that's all.  The only "fee" that I separate from the rental is the security deposit, which must be handled in a particular way by law.  

     

    To set rental rates and security deposits do some research on similar homes in your area.  There is a great deal of information available on homeowner web sites, real estate and property manager web sites, and individual homeowner web sites.  You'll get a good feel for where your home fits and likely get some ideas for improvements or changes to your rental property and procedures.

     

    Good luck.

    • New Member 10 posts since
      Mar 30, 2011
      Currently Being Moderated
      Jul 27, 2011 9:47 AM (in response to thaxterlane)
      Re: Rental Discounts for multiple weeks

      Thank you for your message. I am away from the office from today until August 7, 2011. I will continue to return my e-mails in the evenings.

       

      If it is an issue that needs immediate attention please feel free to call me on my cell phone.

       

      Thank you!

       

      Theresa Light

      (804) 241-2793

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