So, I have a 2/2 in Aspen, in the core of town, 1 block to the mountain as well as restaurants and bars etc.
I had my pricing at around $925/night after the Christmas Holiday and have had zero request or reservations. I just lowered it to $825 a night.
Anyway, i had someone offer $16,000 for 6 weeks. I am hesitant because that is a 60% discount. I can make that in 21 days.
But with that said, if we have a bad snow year again, i could be looking at low occupancy.
So trying to decide on whether to take this or just wait for some reservations to accumulate.
Some background, last year i was averaging around $750 a night and have 100% occupancy over the winter months. Not one day open. I posted that on here and got a lot of feedback about being priced too low, hence forth the rate increase.
Any input would be appreciated.
Why would you consider a 60% discount when you had 100% occupancy last year at a substantially higher rate.
Is there something in your market research that shows bookings have slowed substantially this year both for your listing and comparable properties in your resort?
Sorry, maybe i was not clear. I raised the rate by about 20% over last year and i have not gotten much interest. But i just spoke to someone at one of the major hotels in town. They are 22% down in bookings for the year.
People are a little hesitant to book until we have some snow on the ground. Last year was the worst year we had had since 1976.
Is it a case of “A bird in the hand is worth two in the bush” or “Nothing ventured, nothing gained”? So much will come down to your personal level of risk aversion.
A couple more things to figure into your decision making that could push you one way or the other:
What are tenancy laws in CO? In many areas hosts avoid booking one guest for more than 30 days because they get tenant’s rights at that point.
With a long-term rental you’d expect to pay far less in cleaning/flip costs between guests. You might make less per night but offset that by saving a bundle on cleaning fees.
but my guest pay cleaning fees so that is not an issue. But i hear you, about getting that payment now.
That’s not easy. I do know in Ontario Canada, the rules are no stay 28 days, because then you go under the landlord act . I definitely would check into the code of the city and what the laws are.
Seems like a large discount, I think there are benefits to long-term rentals. If they are low maintenance you can sit back and relax. Not have to send out a bunch of welcome emails and coordinate cleaners. Maybe counter back at like a 20% discount off your normal rates.
i did, and i am going to decline the rental. They wont do more than $16k. I can get 16k at the lower rate in not time