Calculating rental fees for your Bali property villas is not an easy task. If you price your property too high, you risk attracting guests with high expectations who feel overpriced. If you set your pricing too low, you may not be able to make a profit, and potential clients may question your property’s quality. Low prices are also more likely to attract bargain hunters looking for a good deal, who may end up destroying the establishment. So how should you put the right price for your properties in Bali? Let us assist you in developing the optimum pricing plan for your property.
Set Up the Target Market of Your Bali Property
Going online to prominent vacation lettings websites. Our favourite is this Bali property website, Kibarer, to look at thousands of villas and properties in the island comparable to yours to check out the market. Examine holiday rentals with roughly the same amount of bedrooms and amenities. Keep in mind that you must also evaluate the surrounding neighbourhood.
Competitor Research
Find similar holiday rentals in your region by narrowing your search. Examine homes that have the same amount of bedrooms, baths, and amenities like a garden, private parking, and outdoor seating. This will give you a more realistic idea of how much you can charge – though you should still keep an eye on what your competitors do throughout the year so you can change properly.
Set the Bar of Your Financial Goal from the Bali Property
Most individuals get into the holiday leasing business to supplement their income, so the first thing to think about is how much money you’ll need from your vacation let to support your living expenses (such as cleaning and laundry services, welcome baskets etc.).
Just for the laundry and cleaning, an ordinary 2/3 bedroom villa let will cost roughly IDR 500.000 per week. If you like your 3-bedroom villa’s AC on all the time and have a pool pump to run, expect to pay between IDR 2.5 and 3 million a month. Also consider insurance and upkeep bills in your accounting book. Many owners overlook these expenses, but you can’t afford to ignore them.
Prioritise Your Short and Long Term Goals
Setting up priorities of goals that you want to achieve from the property come next. Now you have rough ideas of how your Bali property villa should cost based on competitor analysis and financial goal. Next, you should be asking yourself on which one that you care the most. Do you want to make profit straightaway or do you want to develop a good reputation among holidaymakers first?
If profit is your primary objective, you may charge your competitors a similar (or even slightly higher) fee. However, if getting your holiday rental up and running with paying visitors giving reviews is your top priority, you might want to go a little lower.
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Discounts Planning
It’s great to be busy at peak periods, but what about the slow weeks? When individuals are normally too busy working to take a vacation, some of my clients want to provide special offers or discounts to persuade customers to book during off-peak seasons.
If guests are only going to utilize one room, you could try offering a ‘cosy couples’ discount – but keep in mind that the lowered cleaning expenses aren’t that great, so only a 5% or so discount might be fair.