Latest news

One of the most challenging parts of managing holiday rental villas in Portugal is deciding how much you will charge your guests to stay in them.

Finding your rental rate is a delicate balance. On the one hand, you will want to choose a rate which is competitive because this will offer your guests the best value and make you stand out as the best deal amidst all of the other owners of villas in Portugal. With a lower price, you will get more bookings than them and fill up all of your empty weeks.

However, you will not want to charge a price which too low for your holiday rental, because you will need the income to cover the mortgage as well as maintenance, renovations, supplies, advertising and other expenses. If you are merely breaking even or losing money, there is no point to having a holiday rental business at all.

The trick is to find that golden number which is low enough to attract guests but high enough so it is profitable for you. Here are some tips for determining how much to charge for your holiday rental villas in Portugal:

·        Check out the competition! Get started by comparing your holiday home to other villas in Portugal in the area. Look at similar homes of the same size in the same location, and find out how much they charge.

·        Factor in the costs of extras such as pool heating. Guests don’t enjoy being billed for these expenses on top of their rental fees and they will usually be more drawn to all inclusive prices which include these extras.

·        Stay in your holiday home yourself and look at it from an objective perspective. What amount would you happily pay to stay there? What amount would feel like too much?

·        You should definitely consider charging different rates during the high season and the low season. Most villas in Portugal have a rate which changes every couple of months depending on the weather and the tourism demand. The summer holidays will be popular and will fill up quickly, so charge your maximum price for these dates. Winter will not be as warm and the demand will be less, so lower your price to attract budget travellers looking for a great deal. Your rates for the shoulder seasons of autumn and spring can be somewhere in between, and you might also want to raise your rates during school breaks and Christmas.

·        If your property is in a highly sought after location, such as close to a major tourist attraction or right next to the beach, you might be able to charge slightly more for rentals.

·        Take into consideration the level of luxury within your property compared to other Portugal villas of the same price. Are you offering state of the art appliances and designer home furnishings, or a very bare bones decor? It is the little details and special touches which turn a holiday home from drab budget accommodation to four-star luxury.

Good luck finding the ideal rate for your holiday rental villas in Portugal!

Author Bio

It can be difficult to determine how much you should charge for renting your villas in Portugal. Here are some tips to help you find the magic number.