Chicago is an incredibly popular city, attracting approximately 50 million visitors every year (according to an article by Road Genius).
Vacation rental properties in Chicago, IL, have a lot of potential, but there's also a lot of competition. You need to use the right tactics if you want to succeed as a property owner. The right Chicago peak rental strategies will help you stay competitive and get the most out of your property.
In this guide, we'll go over some key vacation rental pricing tips so you can ensure your peak season pricing is just right. Let's get started.
Use Dynamic Pricing
There are certain times of the year when more people take vacations, meaning the demand for short-term rentals increases. One of the most crucial seasonal pricing techniques is dynamic pricing. This allows you to change the rental price of your property based on demand so you can maximize your income.
You can optimize holiday rental rates using dynamic pricing tools. These can automate price adjustments for you so you won't need to make any guesses or spend time figuring out suitable rental rates at different times.
Consider Your Overhead Costs
Not all of the income from a property will be profits. You need to stay on top of your finances and ensure you're making enough to cover all overhead costs.
There are two types of costs to consider, with the first being fixed costs, such as:
- Mortgage payments
- Insurance
- Property tax
You also need to think about variable costs. These include:
- Maintenance costs
- Utility bills
- Cleaning fees
Calculate all of these then determine how much you need to earn to break even and to make your desired profit. Bear in mind that the income will vary throughout the year.
Compare Your Advantages and Amenities
You should aim to boost rental income in Chicago, and you can do this by making upgrades to your vacation rental. Some common additions that can make a property more appealing include:
- Free WiFi
- Fully functional kitchen
- TV
- In-unit washer and dryer
- Pet-friendly policies
Look at other similar properties in the area to see what they offer and how much they're charging. You'll then be able to see how yours stands up so you can price it suitably.
Prepare for Peak Season
During peak season, you should be able to generate the highest income. However, don't assume that this will just happen naturally.
Many travelers plan trips well in advance so they can get better deals. Early bird offers can be a great way to secure guests ahead of time.
It can be a good idea to increase rental rates when availability starts to get low. However, make sure you stay competitive to avoid ending up with too many periods of vacancy.
Efficient Peak Season Pricing
Using reliable peak season pricing techniques will help you boost your ROI, but this isn't always easy to do. Working with a professional property manager can be very helpful.
PMI Windy City is a full-service real estate asset management company serving clients in Chicago and the surrounding communities. We have an extensive knowledge of the local market so we can help you price your rental property effectively allowing you to maximize your profits. Check out our property management page for more.
