How to Handle Inquiries from Bargain Hunters

Owners Speak

How do you handle inquiries from bargain hunters?

"The testimonials here are so helpful and confirm what I have experienced: by and large bargain hunters turn out to be some of the worst guests. There are those who are diplomatic by asking about rates, and there are those who make rude comments like 'well, that's close to hotel prices...' — whatever that means! I agree that the traveler who tries to diminish the value of your home to get a better rate is not the person you want staying in your home when you're not there. We've been renting our home for almost three years now, and hands down the guests who end up costing us money by being demanding and irresponsible were always those guests who plugged for lower rates. I also feel that those who undercut their prices...like renting a furnished apt for a month for less than an unfurnished long term rental, are not being ethical. Deep undercutting is not an ethical business practice." Anonymous (HomeAway)

"I add the comment—We take no offense to other owners offering substantially lower rates.....obviously they know the value of their property!" Arthur, Orange Beach, Ala. (VRBO #124347)

"I really appreciate all the comments from everyone; you have confirmed what I have suspected. I just listed my ski condo on VRBO and like most of you, I've received inquiries from people looking for a bargain. It really helps to talk directly to these people and get a gut feeling for their motives." Diane, Park City, Utah (VRBO #276772)

"I have found that the bargain hunters take more of my time, have more issues and leave the place in the worst shape. I think that their lack of respect for our rates shows in their lack of respect for our home. I will steer clear of these folks in the future and would rather have the house sit empty than deal with the extra wear and tear these folks seem to create." Renée, Oceanside, Ore. (VRBO #154587)

"We have owned our property since June 2009 and have learned a great deal about renting to strangers! Because we jumped in in the midst of the high season, in a post hurricane area, I low-balled the first few tenants. And, that's just what we got...renters that cared less for the property than those who paid more later.  Now that I feel confident that a niche of guests will love our home as much we do, I politely stand firm with our rates.  By continuously monitoring the market, including the "availability" of the properties managed by companies, our rates stay only slightly below (5%) those of the competition. Many beds go empty in our area while ours are filled!" Cas, Galveston, Texas

"I'm fairly new to renting, and was getting discouraged by all the bargain hunters making ridiculous offers. We hold firm, and say it wouldn't be fair for the next renter to pay more simply because he didn't ask for a discount. One potential renter was "nickel & diming" so much, I realized if I booked this guy, I would get nothing but complaints once he got there, looking for refunds. I told him he would be happier with a more experienced owner. Now that we've been listed on HomeAway & VRBO for 4 months, we're doing much better, and attracting the renters we're happy to have! I know owners in our area are hurting in this economy, practically giving their homes away, but I wish they would bump up their prices, because their renters will expect those rock-bottom bargains next year. There's no way a 4-bedroom house s hould rent for less than one hotel room per night. We still get many renters telling me they "found" a cheap house, and ask if I will match it. I simply say, "Sounds like you found a great bargain, you should jump on it". I decided, "this is MY home, I decide who gets to stay and for what price"! We work hard to keep it nice for our vacations, too!" Shelley, Kissimmee, Fla. (HomeAway #253049, VRBO #258753)

"We own a condo in Vail, CO and have used the management company in our building to rent it for us. They charge 40% but provide the sheets, towels, toilet paper, soap and small sized bottles of shampoo, conditioner, and lotion. So, after talking to my neighbor and reading your book, we decided to rent it ourselves through VRBO. My husband and I have spent a lot of money purchasing new sheets, towels, pot-holders, etc and hope to recoup the costs involved in renting it ourselves. So far we have one rental in January and the other two weeks are to friends of ours.

I am extremely frustrated because people want a good deal. One man suggested a price that had I taken it, I would have made less than through the rental company - not even taking into account my time involved in communications, sending keys, paying the state and local taxes, etc. One woman wrote the following: 'Comments: I really need you can ! give me an excellent price to convince my husband to go, please think and let me know. I think is better you rent it no matter cheap than no renting don´t you think so? Thank you very much and wait for your answer.'

We will evaluate after this ski season and if all we get are the bargain hunters we will go back to the management company and have them rent it for us. For this to work, it needs to be a good deal for the owner and renter alike. Thank you." Hedy, Vail, Colo.


"It's now the end of economically troubled 2009 and the owners in our area who are facing foreclosure are still offering bargain basement rates. We've had inquiries from 3 early shoppers for prime summer weeks, and even with more than 10% off our listed price, they are getting a better deal and booking elsewhere. I hope the owners in Seagrove Beach (30A area) will begin to steer the prices back upward rather than down, for all our sakes." Elaine, Seagrove Beach, Fla. (VRBO #246101)

"This past summer (2009) I had an inquiry for a High season week not yet booked, and they wanted a bargain. Instead of a payment they wanted to 'swap' our cottage for a double room B&B, for a couple of days. In return, they would get our cottage for the whole week. Although the B&B looked nice on their website, I was not interested in 'swapping' places for a few reasons: the location of the B&B, the fact that we have a little girl who wouldn't have anything to do, and the fact that a one room, two night stay in a B&B doesn't pay for a five day stay at a cottage on the water. I just told the inquirer that we do not 'swap' in our business, but 'Thanks for inquiring.' You do have to go with your gut. Something did not feel right with the initial inquiry so I am glad we moved on." Brooke, Southport Isl, Maine

"We offer a discount to 501 3c, not for profit organizations. It is generally 15% off the regular rate." Sandra, Stockholm, Wis. (VacationRentals.com)

"I always discount! I set my rents at market rate and then offer a little or a lot of discount depending on time-to-vacancy etc. People love a discount. Makes them feel better. If you need to, I recommend making a policy on discounts vs. days to vacancies. However, you should always have a minimum rental amount for a booking (i.e. the total rent -cost- for the booking). Offer to throw in extra nights if you have to, but don't go under your minimum booking amount. Other owners and I have found that the more someone pays for your place, the better they will take care of it. So when you dip under that minimum booking rent, you also dip into the bottom feeder zone. Trust your instincts. If some peculiar things are said in the emails leading up to a booking, then perhaps let it go. Prospective renters who are needy and/or overly "detail-oriented," especially before the booking, are completely to be avoided. Finally, always be pleasant and always offer alternatives for people who you turn away." DK, Tahoe City, Calif. (VRBO # 6358)

"I am competitive in my market so I hold firm and restate the value. I don't need the expense of a bad guest. When I started out 6 years ago I was 1 of 37 vacation rentals in historic Savannah GA. Now it's closer to 250!" Randi, Savannah, Ga. (HomeAway #180233, VRBO #145880)

"I generally hold firm to my price. I have been careful to price reasonably when compared to other properties in the region. I have on occasion waived an extra person fee, but I agree with the other comments that bargain hunters are usually hard on the property. I have had people ask for a discount for one reason or another after the arrive, and we always tell them if they're unhappy, we'll refund the balance of their week and let them check-out. No one has taken us up on that offer!" Kathy, Dale Hollow Lake, Tenn. (HomeAway #137476, VRBO #42220)

"I just explain that our rate is reasonable for the area and suggest they look in a different place on our island where they may get a better rate but not as good a location or quality. I thank them, and explain again the value of our location." William, Harbour Town — Hilton Head Isl, S.C. (VRBO #204187)

"I only discount our condo for long stays. Bargain hunters who we have granted discounts in the past were ALWAYS less than great renters. Our rates as posted, a great value, and our renters have referred our place to their friends. Don't sell yourself short." Bob, Ekahi, Wailea, Maui, Hawaii (HomeAway #212578, VRBO #211243)

"I have had many wonderful renters. I've gotten to know them via the phone and email and developed a relationship with them before they stay at my home. But, beware of "bargain shoppers" — people who show up in your area and search the net for last-minute openings and rental bargains. Even though I gave them an incredible deal, they were the only ones who ended up being difficult and demanding." Lori, Hawi, Hawaii (VRBO #202684)

"My property is very unique (it's a tent) and very new (<1 month on the market). A potential renter asked if I would be interested in renting it for two days even though it was a stated 3-day holiday weekend. I had had two other inquiries for the same thing— two nights instead of three. I agreed. Her next email stated how much she loved the property but it was high for her budget and could I give her a discount.  My reply: 'Because Sinya is new on the market, the current per night rate is an introductory rate and barely covers its cost to operate. I cannot offer any further discount. Thanks again for your interest.' Thankfully, the next day I rented the property to a lovely couple for the entire weekend and didn't have to haggle one bit." Lynn, Texas

"I have had another homeowner write to me asking for a discount on my 'dangling' weekend. They called 3 weeks in advance and I do not consider a weekend 'dangling' when it is that far in advance. I told them no, that I would contact them 4-5 days before, that I might get it booked and guess what — I did just that — got a six-night booking which included the 'dangling' weekend. I followed my instincts." Anonymous homeowner from N.C.

"I ask them where they live. If they are traveling from a long distance or ask about a bargain, I immediately offer to pay for their parking pass ($15 value). I don't make them beg for a bargain and I won't give my place away. I have found this to be very effective. This small gesture saves me a lot of time on the phone with bargain hunters. They are usually happy and I end up with the rental rate that I need. Another suggestion: find out what is going on with the surrounding properties. Maybe that brand new resort has just filed bankruptcy. If the bargain hunters want to stay somewhere that is brand NEW but suspiciously cheap. At least in our case the condo development is established in PCB and won't have a chain on the door when they arrive for their vacation." Kimberly, Panama City Beach, Fla. (VRBO #184083)

"I stay firm on my rates and explain that I am also affected by the increase in prices of everything. Thus, I can't afford to discount my home unless it is one week prior and still available!" Anonymous homeowner

"The few times I have lowered my rate and rented to a bargain hunter I end up losing a lot of $$. They not only get the discount when they book, but they also complain about almost everything when they arrive to try to get something out of you, maybe a free night or a credit of some sort, or they even request a credit to their credit cards. Now I prefer to have the villa unbooked than to rent it to a potential trouble maker." Anonymous villa owner in Puerto Rico

"We just had a recent run-in with a 'bargain hunter.' She asked to rent our place and said if you give me a discount on a third night, I will stay three. We told her that because it was a holiday weekend and we had not raised our rates that she was already getting a discount. She stayed her two nights and had more people than she said were staying, and her dog. They did a lot of sheet rock damage to our loft area (not sure what they were throwing at the walls and why) but you get the general idea. We were able to re-coupe the dog fee, even though they still lied to our property management company about us saying that the dog could stay for free. We learned our lesson from this and realized that you have to be careful of so called 'bargain hunters.' Judy, Jay Peak, Vt. (HomeAway #193792, VRBO #147828)

"I stay firm on my rates and hope that other Sanibel, Fla. condo owners will do the same. Once you start offering discounts it hurts the entire condo rental market in your area." Anonymous condo owner from Sanibel, Fla.

"Last-minute deals are just that, last minute. I often get folks who want last-minute deals a month or two in advance and I tell them they can either book at the regular rate today or wait until 3-4 days prior for a last-minute rate. Very rarely do last minute deals materialize because I've always booked at least a week or so in advance. We all benefit from that strategy." Ella, Woodstock, N.Y. (HomeAway #139069)

"When I receive a request for a discount because they see my calendar is vacant, or when they ask if I will cut them a deal if they stay longer, my reply has always been, 'I do not discount, good luck with your search.' After their search has ended with no luck, they will contact me again wanting to reserve the time for the rate stated on the web page. HOLD FIRM, serious renters will make the bookings, everyone else is just looking." David and Mary W., Isla Mujeres, Mexico (VRBO #148939)

"Always let a prospective tenant know that your rental is priced competitively, and SHOP the competition (on VRBO and the local realtors) to back up your claim and use those listings as points of reference. I will throw in a $50 parking credit if pressed and it usually seals the deal. In 2008 with the crazy gas prices we sent out $50 gift cards with the keys to offset the fuel cost. We still get lowball offers and I turn them away. The condo association and mortgage company don't want to hear that we can't pay their bills because we discounted every rental!" Paul & Michelle, Ocean City, Md. (VRBO #188601)

"We do not offer any discounts because it is not fair to the guests that have previously confirmed and booked at the full rate." Sandy, Sanibel Island, Fla.

"I send them the weblink to other properties in the area that aren't as nice, but cheaper! I also point out that our price is all-inclusive with no add-ons, and they realize that ours is very good value and are then keen to book at full price. Good guest comments about value for money also help!" Jenny, Lauterbrunnen, Switzerland (VRBO #60199)

"I have a philosophy on bargain hunters and last-minute renters and am steering clear this season. I've found in my 8 years of doing rentals in my property that those renters tend to be harder on the property and have caused the most damage. My belief is that if you are the daring/last-minute-type renter, you tend to live a little dangerously and material things have little meaning. A great philosophy but not so great if you're writing the checks to repair the damage! So...I make all renters pay full fare but have been known to offer an annual pass to our beloved state park which has the best beach around." Ronda, Fenwick Island, Del. (VRBO #118868)

"Our house is not in a resort area. There is a ski slope nearby, but the season is relatively short. We recently had someone ask for a discount on a week's stay, which I agreed to and was glad I did, as no one else came along wanting to make a reservation, and the discount renters left the house in excellent shape. However, I only agreed to the discount as it was a whole week's booking — it's probably better to lose the odd reservation than to be constantly haggling. For this upcoming season, I plan to include tax and cleaning in the published charge — that way the renter is not put off by hearing the grand total, after looking at the pre-cleaning, pre-tax charge on the website." June, Mercersburg, Pa. (Homeaway #230177, VRBO #200037)

"I hold firm on prices since my property is already discounted 35% below market value. As another owner stated, we have bills that have to be paid and we can't pay them if we give away our property. Hopefully all the owners in our resort will keep their prices firm so as not to bring prices down to nothing." Karla, White Mountains, N.H. (Homeaway #143161)

"I want to thank everyone else who took the time to write in. I appreciate the encouragement. I'm in year two of my rental and have held firm on my rates but have questioned my decision. Not anymore. The one thing I did do this year was offer last year's renters a 10% discount if they booked by April 1st. I'm taking the long view and feel it's more profitable to rebook previous renters who know the house (and its quirks)." Tony, Union Pier, Mich. (HomeAway #22875, VacationRentals #39965)

"I owned and operated a large, very upscale Guest House on Maui for 20 years and now I have my one rental in my beautiful Townhouse in Napili. What I learned with this life experience is that when people want to undermine my prices this is usually a red flag. Of course we all want a deal and there are respectful ways of asking for a compromise in price. I honestly have found that the most lovely and gracious guests are ones that don't expect you to compromise your integrity regarding rates. These are the people that I love having in my home and they always get way more than they pay for because they are so wonderful! Attitude is everything!" Jewel, Napili, Hawaii (VRBO #153310)

"I politely thank them for their interest always. I tell them: a) Our resort is the #1 best location on the beach, and I'd be suspicious of ANYBODY discounting here during the high season. b) We keep our condo in 'new' condition, constantly touching up paint, replacing worn towels, cleaning carpet and tile, repairs, etc. That takes money. And last but not least, c) you usually get the quality you pay for. I subscribe to the theory that I'd rather justify the price than apologize for the quality. " Cara, Panama City Beach, Fla. (HomeAway #172366, VRBO #118351)

"When they tell me that their budget is X I usually respond by asking if the airline company agreed to meet their budget?" Andrena, Fla.

"With over 20 villas to rent here in Pattaya, Thailand and the current political problem (more media-generated than real) we get inundated with bargain hunters.  The fact of the matter is they do not book. Can they call the airline and demand a deal? I don't think so! Shout out the benefits, point out the freedom and real cost per person over hotels, add the personal service — they don't want a box, they want a home! Get your marketing together — there are still enough clients to provide the right margins." Paul, Thailand (HomeAway #13315)

"I am always firm on my rates. I'd rather have my properties be empty than occupied by bargain hunters." JF, Wolfeboro, N.H. and Bartlett, N.H.

"Since an extra weekday usually doesn't cut into my ability to rent, I will turn a 3-day weekend into a 4-day weekend with the 4th day free. The free day has to be either a Tuesday or Thursday. This is only on last-minute renters. " Brenda, South Lake Tahoe , Calif. (HomeAway #177271)

"We politely refer discount travelers to inexpensive hotels in the area. We find renting in one-week increments weeds out most discount travelers. We do discount for return customers — 25 percent off the second week, or 50 percent off the third or fourth weeks. It builds a repeat business, and they often refer like-minded friends." Doug, Spain (HomeAway #223047)

"Gee, I feel like I'm really in the minority. We offer a competitive price and have great feedback on our home, but if the person is someone I'd want in the house — and especially if it's a couple or small group — I will give them $100 or so off. They seem to respond well to that. Rentals are slow on the Vineyard this year and I'd rather have someone in the house for a bit less than have it empty. So far we've had really terrific tenants and no problems. Everyone likes to feel they're getting a bit of a bargain." Kathy, Martha's Vineyard, Mass. (HomeAway #105691)

"I find most of the 'bargain hunter/wheeler dealer' types positively offensive and illogical. It never occurs to them that your vacation home is a home and an investment and that you'd rather not rent to someone who only cares about a deal and not the quality of the property. I will use my property myself or schedule a maintenance day before I will rent it to a 'give me a deal because I deserve one' tenant." Mary, Laie, Hawaii (VRBO #68461)

"Bargain hunters are everywhere and are ever-increasing in number, especially in this economy. We provide discounts through waiver of the taxes (which is basically just a discount and I still pay the tax) or the up front gratuities charged. It really makes no sense to discount your property excessively since YOU will end up paying for the guests' vacation. And where's the 'cents' in that?" Darrell, Discovery Bay, Jamaica (HomeAway #150941, VacationRentals.com #1113)

"I made the mistake of discounting to renters that even at the time I was wary about. I regretted the decision as they trashed the house. Repairs cost over $1500 dollars and their deposit did not cover the repairs. They had moved from the original home address and all efforts to trace them ended with a dead end. I have priced the property to be competitive but do not discount following my past experience." Mark, Orlando, Fla. (HomeAway #208397)

"I have been very careful to price my rentals competitively in the market. They are priced 'just right' for the kind of thoughtful and respectful renters I want in my homes. I will negoitate a little bit, like free cleaning if asked, but I will not agree to a rental rate that is too low. If someone is asking for $600/week at Troon North in Scottsdale when my rate is $1595/week, that is not the kind of renter I want. I will keep it empty rather than have a potential problem renter. However, sometimes I will work with the renter and give them 2 nights free in April in Scottsdale when they are looking to book 9 nights and I still have the availability. But mainly I stay close to my price." Anna, Scottsdale, Ariz. and Martha's Vineyard, Mass. (HomeAway #126533)

“I recently had a call from a fellow in Canada who used the excuse about the 'money exchange rate.' He wanted me to lower my price from $2,000 per week to $2,000 for 2 weeks and then wanted an extra 2 days added on. I declined and made a counter offer. I will give a discount if I, after a phone conversation, get a vibe that this person is just really on a tight budget because of the economy. You can get a sense of the person when you talk to them over the phone. It's on a case by case basis. I do feel that it is not fair to the people who have paid full price to lower someone else's price too much though. So a small discount for someone who is having real trouble putting a vacation budget together I think is acceptable.” Tere, Oceanside, Calif. (VRBO #249634)