Most property managers believe that the only way to increase their revenue is to have more listings and get more clients. But that’s a common mistake! In this article we’ll show you why.
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Let’s take this three-bedroom apartment in Madrid as an example.
How do we know what is the right price for each day?
It’s not the amenities or how big it is. The things that matter are:
- The rental price
- Tracking search results (since we need to know on which page our listing is found)
- Current rental occupancy
- The market forecast
We need to know how booked this type of apartment will be. And the way we do that is by having an algorithm that is fed by our bots that monitor Online Travel Agencies, such as Booking and Airbnb, to know what are the prices selected by the competition.
In the case of our three-bedroom apartment, we are monitoring 342 similar rentals that match in number of rooms, guests it can accommodate, and area. In this example, we are looking for similar listings within a 1 kilometer radius, so when we know how many similar apartments are left and we know that demand will be even higher, we can increase the price twice, even three times!
For example, for a particular day we are offering this apartment for $258. But there are other days we can offer the same apartment for $830 for example. The reason is that the demand is greater than the supply.
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If you want to know if we can help you, just schedule a call with us. We’ll review your apartments and help you get the most out of your rentals!
