Maximize Revenue, Minimize Vacancy
When it comes to furnished rentals, vacancy is the biggest challenge preventing you from increasing revenue. That’s why HomeSuite has developed flexible pricing tools to create a win/win situation that helps minimize vacancy related downsides.
The key to reducing vacancy loss is optimizing pricing for flexible lengths of stay. Not only does this cause less wear and tear on the unit, it also unlocks the highest potential payout of annual revenue. The chart below illustrates the correlation between lengths of stay allowed and annual revenue. As rental providers allow for a wider range of length of stay, the annual revenue potential of their unit increases. Shorter stays can be accommodated with higher monthly rents, while longer stays can be garnered with lower monthly rents.
The next chart illustrates that as the flexibility of allowing for longer lengths of stay increases, the overall risk of vacancy decreases. Therefore, the optimal pricing strategy includes a lower monthly rent for 12 month stays and higher monthly rent as length of stay decreases.
Analysis of data from HomeSuite partners suggests that each day of vacancy is estimated to forfeit over 3% of the monthly rate. This chart shows how focusing exclusively on short-term stays ultimately creates more vacancies in the long run:
As you can see, being open to longer lengths of stay ensures that revenue is maximized on an annual basis.
“How can I incentivize maximize revenue on length of stay on HomeSuite?”
The HomeSuite platform gives you the ability to maintain maximum flexibility over how you price in order to maximize revenue on different lengths of stay without sacrificing revenue.
The HomeSuite platform currently offers two price optimization options:
- Length of Stay Pricing Structure:
- Tenants are incentivized to stay longer at your property with discounted rates, helping you to attract longer-term tenants while still allowing you to maximize revenue on those who stay for shorter durations of time.
- Seasonal Pricing Structure:
- You can optimize rates based on what time of year it is. This helps you reduce vacancy during the off-peak while giving you the opportunity to cash-in on peak seasons.
Taking advantage of either of these features gives you the best possible chance to maximize revenue on your unit with HomeSuite. Regardless of the length of stay, HomeSuite tenants are fully screened, vetted and verified by our enterprise-level background, credit, and financial checks to ensure that you have the highest quality tenants. HomeSuite also guarantees up to $50,000 in unpaid rent and up to $10,000 in property damage to continue to ensure you peace of mind.