According to a May 2023 post by KXAN.com, Austin travelers spent $8.2 billion while visiting the Texan city in 2022. The article also noted that the Austin-Bergstrom International Airport saw over 1.94 million departing passengers in March 2023, a 6.52% jump from March 2022.
So, if you've always wanted to be part of ATX's tourism industry, now is the best time to consider becoming a vacation rental host. With effective peak-season pricing, you can generate a hefty income.
To help you get started, our team at PMI Austin Metro has shared vacation rental strategies and seasonal pricing tips, so read on.
Know When Peak-Season Pricing Applies
As Lonely Planet points out, March and October are two of Austin's peak-season months, especially for music lovers. South by Southwest, a nearly two-week festival, happens in March, while Austin City Limits (spanning two weekends) takes place in October. These months also mark milder temperatures, making ATX's weather more tolerable.
In general, spring and fall are peak seasons in Austin, especially for visitors who are less tolerant of high temperatures. Then, there's winter, when snowbirds flock to ATX for its mild temps and, as Weather.gov explains, a lack of precipitation, making outdoor activities even more enticing.
During those periods, peak-season pricing applies, which allows for a rental income boost Austin vacation hosts should take advantage of. Rates increase throughout these times, as more visitors usually translate to an increased demand for accommodations.
Master Dynamic Pricing
Dynamic pricing is a solid strategy for pricing optimization Austin vacation rental hosts must implement. It involves increasing the rates during peak season (as discussed above) and lowering them during off-peak season.
Since the demand for lodging is high during peak season, it's completely okay to apply a reasonable rate increase and still get all those bookings. However, you must adjust your prices accordingly once the demand drops. Otherwise, vacationers will likely bring their business to your competition, resulting in potential income and profit loss.
Get a Vacation Rental Management Pro to Help
A vacation rental management firm can help maximize your rental income by:
- Determining your property's fair market value rates
- Implementing dynamic pricing strategies
- Overseeing your property's upkeep and repairs
- Promptly responding to potential guest inquiries
- Managing guest bookings, check-ins, and check-outs
- Providing professional accounting so you can stay in the loop of your property's income performance
So, with a dedicated vacation rental manager, you'll have a pro handling your off-peak and peak-season pricing. All you'll have to do is wait for your rental income to roll in. It's the most "passive" way to profit from your vacation home.
Ready to Earn Passive Vacation Rental Income?
Remember: Effective peak-season pricing strategies start with knowing Austin's peak and off-peak seasons. Then, you must price your rental higher or lower to maximize your income.
However, the best way to maximize your rental income is with the help of a full-service management firm, such as PMI Austin Metro. Our owners, the Koster family, are realtors and have been Austin locals for 20+ years. Our owner/property manager, Brian Koster, has been a landlord and an HOA board member and has 30+ years of business management experience with Fortune 500 companies.
So, if you're ready to earn passive vacation rental income, speak with us today! We'll gladly answer all your questions and provide a free property consultation.
