Pricing Too High Can Cost You More Than Bookings

Every once in a while I meet a homeowner that wants to price their rental way above market value, because they feel that their listing is more "special" or "premium" compared to the market. If you're a property manager, you've probably had to deal with this.

It's always an awkward conversation when you have to tell the homeowner "yeah, your home is special, but it's also the exact same as these other 100 listings that I'm comparing pricing too, so we shouldn't raise rates." 🫠

I had this one owner that wanted me to price his listing much higher than I suggested, and I didn't fight him on it because he was pretty set in his ways. We got bookings, but the reviews were SO BAD because guests were very disappointed when they checked in. The were expecting more for such a high price.

Eventually, this homeowner decided to close down for a few months to do renovations so that he could justify his high prices.

If you overprice your listing, it can actually lead to lower revenue AND worse reviews.