Why Dynamic Pricing is Non-Negotiable for Short-Term Rentals
If you’re not using dynamic pricing for your short-term rental—or worse, if you’re trying to manage it yourself without the right expertise—you’re leaving serious money on the table. Many vacation rental owners assume that self-managing their property will save them money. In reality, a skilled property manager’s fee should not only pay for itself but also significantly increase your revenue compared to an owner who’s just winging it with a handful of properties.
The Unfair Advantage of Professional Property Managers
Those of us managing multiple units have access to tools and insights that individual owners simply don’t. As professional hosts, we have dedicated Airbnb reps who provide detailed reports on how our properties compare to the competition. This means we’re not guessing at pricing—we’re making data-driven decisions that ensure maximum profitability.
We also leverage dynamic pricing software that adjusts rates in real time based on demand, competitor pricing, local events, and market trends. But having the software alone isn’t enough. It takes experience and a deep understanding of market fluctuations to set it up correctly and fine-tune it for optimal results. Otherwise, you’re either underpricing and leaving money on the table or overpricing and missing out on bookings.
Dynamic Pricing Software Isn’t Perfect
While dynamic pricing software is a game changer, it’s not flawless. There are local market nuances that algorithms simply don’t catch. For example, in Ashland, Oregon, some of the local college graduation weeks drive high occupancy, but most pricing tools don’t recognize these patterns. That’s why we manually override the software when necessary to ensure our pricing aligns with true demand, not just broad market trends.
The Seasonal Reality of Short-Term Rentals
Short-term rental revenue is highly seasonal. In Ashland, Oregon, for example, summer is peak season thanks to the Oregon Shakespeare Festival. That’s when we need to capture top dollar to balance out the slower winter months. Without a dynamic pricing strategy, owners risk either underpricing their peak season (missing out on revenue they need to survive the off-season) or overpricing during slow periods (leading to high vacancy rates).
If You Insist on Self-Managing, Get Educated
If you’re determined to self-manage, take the time to truly understand dynamic pricing. It’s not something you can “set and forget.” Consider signing up for a class or workshop—ideally one that’s tailored to your local market, since pricing strategies can vary wildly from one location to another. Learning how to properly use pricing software and when to override it manually can make all the difference in your rental’s success.
Why Hiring a Property Manager Pays Off
A well-run property management company does more than just handle guest communication and cleaning. It ensures your property is positioned competitively in the market, pricing is optimized daily, and revenue is maximized year-round. If you’re managing your vacation rental without dynamic pricing—or without deep expertise in using it—you’re likely missing out on thousands of dollars annually.
Want to stop leaving money on the table and start maximizing your rental income? Contact us today to see how McCracken Property Management can take your short-term rental to the next level.