How much do you rent your apartment on Airbnb or Booking: 10 euros per night? 20€? €500? How to set the price of your accommodation on the Airbnb platform?
Now that you control her legislation governing the rental of your accommodation on Airbnb in Paris as in any other French city, that you master how to declare its income and especially at what tax rate your profits will be subject to, we pass to the second part of this topic devoted to the private lease platform the most used in the world. How to set the price of renting your real estate on Airbnb or Booking? We deliver you all the secrets to assign to your real estate the right rental price!
What does the price of your accommodation refer to Airbnb?
It is important to have in mind that setting the fair price on Airbnb is substantially the same, whether it is a room or an entire accommodation. At least the basis on which the tariff is established.
This tariff represents grosso modo the amount your tenant will pay for a night in your accommodation. In short, the price that individuals who have chosen your rental will pay to be able to occupy one of your beds, or your entire studio/apartment. However, this price does not include the maintenance costs of the accommodation, including the household, or the costs related to the residence tax or late entry tax in the premises. This price does not include the reception of pets, nor even the costs per additional traveller.
Finally, this price also does not include Airbnb’s commission fees, nor does Airbnb’s surtax for tenants. Both included between 3 and 15 per cent.
For example: if you propose overnight stay in your accommodation at 100 euros. The traveller will pay to Airbnb 112 euros. The firm will puncture a commission between 12 and 15% on the side of the traveller. As well as a 3% commission on your side. So you will receive on this transaction 97 euros.
So, how do you set this price?
By fixing the overnight price in your Airbnb accommodation, it is therefore essential in the light of the elements described above to keep in mind that this rate is not the one that the tenant will pay once his invoice has been made. Various fees are likely to inflate the final invoice. This will have the perverse effect of deterring your potential tenant to make the choice of your room, apartment or house. The consequence being in fine Moribond filling.
We highly recommend you in this exercise to follow a few rules. Including the one to perform competitive monitoring . For example, if an Airbnb user has accommodation with similar characteristics to yours, it would be advisable to monitor a few weeks during the evolution of the rates on their ad. This will give you a very useful basis on which to establish a starting price. This is the same number of rooms, bathrooms, private or shared bathrooms, etc.
Some tips to get closer to the right price
The price management of its Airbnb accommodation is a long-term job. This includes the watch for competition, but also and especially the implementation of quite interesting tricks. Among these tips, we chose two of the most used by Airbnb’s most prolific renters:
More nights, more discounts
The second clever residence by offering a discount on long stays. This allows on the one hand to increase the final invoice. And on the other hand add attractiveness to your ad. Indeed, a potential tenant would be more attracted to an ad offering a few dozen euros of discounts, which he can invest in an additional service that you offer.
Rates for local events
Our cities are several times a year the theatre of festivals, competitions, conferences... which are regularly the subject of an increase in the flow of visitors. In order to attract ever more barge, it is recommended to opt for event rates . If you have no Airbnb rental request on your ad, opt for a discount price to increase your ad’s appeal. Conversely, if your accommodation is rented well throughout the year, it can be wise to identify the events of the year that could attract the world to your city to rent your apartment or house a little more expensive (this is the law of offer and demand after all!)
Rental on Airbnb is increasingly competitive. It is therefore necessary that we are ready to post the advertisement, to allocate the fair price to its accommodation in order to create a base of potential tenants and increase its filling rate.
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