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Yes, I try to follow the beyond pricing model of 50%-1m/30%-3m. While my nightly rate is a little less than I used to set it at on some dates, I’m making a lot more money as more nights are filling.
And I think ROI depends on your unit type. After all our expenses we now make between 50-70% profit after the initial 6 months. That’s doing everything ourselves, so it’s basically utilities, food, supplies, and needed repairs/upgrades.
Our first month was pretty much a break even as we took a blank slate basic apartment and turned it into our rental. Then over the next few months we were probably making 25-40% profit as we were upgrading items, adding new linens and towels, upgrading according to comments, etc.
It also depends on market saturation and your pricing. Thankfully we don’t have too many other STRs to compete with as we’re suburban and we’re 20 minutes away from the cluster of city rentals.
I make sure that I have paid exactly 80% of last year’s bill. I run my numbers monthly, so I know within $500 how much I will owe. I have been doing this self-employment stuff for over 40 years. [I have no W2 income, and never have.]
I have 4 kids, and my husband works in tech which means salary is high in bonus which means no matter how many deductions we claim he still gets 40% withheld on bonus payouts. So we always get money back, so I file ASAP.
Absolutely not. I often have bookings that are six months or even a year in advance. Just today I had an inquiry for three weeks in February 2018. The ‘wisdom’ that came up with this 50/30 seems to say that if you are booked up well in advance, your prices are too low. I disagree.
I know how much to charge for our rental (more than any service does) and plan the calendar accordingly. I would be quite irritated if I was only booked for 50% of the time a month in advance. In fact, I’d be quite worried and would be promoting our listing like crazy.
Ditto ditto. I am already 100% brooked for October 2017. April - September is around 75% booked. I have blocked off September in case we decide to rebuild the porch in the Fall. My market doesn’t seem to be last minute, or if it is, I am not part of that economy.