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Determining Monthly Rates for Your Vacation Rental Home

One thing I have learned about the vacation rental business: There are no "absolutes" when it comes to answering questions. There will be many variables involved in determining an answer for any given question.

As far as monthly rates go, here is a general formula you can use to determine monthly rental rates for long-term rentals at your vacation home.

For monthly rates:

If you are quoting for a peak season that would normally rent all four weeks, then give NO discount. Why should you cut yourself short when you know that your vacation rental property would otherwise be booked?

If it's an off-season month, where you would normally rent two or three of the four weeks, then charge two full weeks rent.

If it's a low season where you wouldn't normally rent anyway, then price it at approximately two week's rent.

For example:

Given that you rent your second home for $1000 a week during the peak season, $700 a week during off-peak season, and $500 a week during the low season, you can approximate the following:

1 month during peak season $4000

1 month during off-peak $1500 to $1600

1 month during low season $1000 to $1100

A quick note: Check with your state's sales tax office, as some states do not require you to collect sales tax on rentals of 30 days or longer.

© Copyright Christine Karpinski 2006

Updated: September 16, 2009