The big mistake of using high prices in holidays rentals

40707688“We always have time to lower the price, but not upload”.

When to rent out a house that we do not use many of us had thought that. But when the ultimate goal is to rent in a crowded market where supply and prices are down, you may need to adjust the price right the first time. However, starting with prices still too high for many homeowners is tempting. To avoid falling into this temptation, it’s worth taking a look at the five deadly sins of overpricing:

-No spark enough interest by a high price.

Prospective traveler who may stay at home, are knowledgeable about Mallorca market and each area of the island. If you put too high prices for your area, most of them will not bother to know more about your property, much less to get in contact for a possible lease of the property.

-Losing competitiveness

The truth is that high price of our property always benefit the “competition”. How? Actually our price makes the rest of rentals with similar features appear “bargains”, so simple.

-Stagnation

The longer is your property on the market with prices not suitable to the demand, will make your property isolated and not attractive for prospective travellers. Do we not see many houses with posters of “for rent” or “for sale” and where never removed the sign? … And do we not ask ourselves how many defects that nobody rent it? … And surely we conclude that it is … the market price for rental online is exactly the same.

-Harder Negotiations

Travelers who are interested in the house try to negotiate harder to see you not rent for a long time and the price is oversized compared to other similar homes. Or put another way, the few stakeholders who contact you, will make things more difficult.

-Missed Opportunities

When you put a high price to rent the house you try to rent to travelers, you are missing many opportunities to find interested travelers, since most of them do not even bother to look back to your property, to be in a price range that do not accept.

Keep this in mind, not the act of putting your seasonal rental property on line, should you want to apply the price all you would like to win, be reasonable and set reasonable prices … first study prices in your area and compare market.?

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