Long term rental rates vs short term

[Tim3961]

Hi there, we are just starting out our journey. I am wondering how to calculate the rate for a monthly stay request and what kind of a discount is reasonable to be included? Is it too much to go 50% of daily rate in case of a month long stay? 

[James3741]

When it comes to longer term stays, most hosts apply a discounted weekly or monthly rate. For a month, 30-40% off the normal daily rate is pretty standard. 50% off may be a little high, but could work if the place has availability for the full month with no cleaning fees. You'll also want to consider any weekly discounts - like offering a slightly lower rate for weeks 2 and 4 to encourage full month bookings. Hopefully some more experienced hosts can also chime in, but hope this gives a starting point!

[Helen3]

Is it? Love to see your data showing most hosts offer a 30-40% discount on monthly stays @James3741 

I offer a 10% discount. 

your profile shows that you aren't a host so interested in where your knowledge comes from? 

[James3741]

You're right that I'm not actually an Airbnb host myself so I don't have personal data on rates. I was just going based on what I've seen discussed generally on forums by other hosts when monthly stay discounts come up. But you make a fair point that I shouldn't state things so definitively without data to back it up. 10% does seem more modest than what I suggested. As someone just starting to explore hosting, I don't have enough direct experience yet. Thanks for pushing back - it's helpful for me to learn. In the future I'll be sure to caveat unsupported claims rather than stating them as fact.

[Mike-And-Jane0]

@Tim3961 A few thoughts:

Most hosts are keen on longer stays in low season. Just be careful that most low seasons are low due to excessively low or high temperatures. As such utility bills may be equally high.

Secondly what occupancy might you expect for low season. If it is 50% then offering a discount of this size to fill the place for the whole month just leads to higher wear and tear and no additional profit.

Finally we do STR for a reason - If we don't like a guest then they are gone within a few days. I have to say though that after 5 years or so we have never wished a guest would leave early!

[Helen3]

You need to work out your break even point for your listing and look at what others are charging in your area. Then identify what profit levels make it worth your while to accept a long term booking  @Tim3961 

Longer term guests use more utilities and you should factor in regular cleans to make sure your property is being maintained.

I offer a 10% discount for longer stays. 

[Lorna170]

@Tim3961  My discount rate was 20% when I catered to long-term renters. 

If you offer too great a discount, you may get a guest who says that they want to stay for XX days, but then up and leaves after a few days and wants a refund for the days they did not stay.  

[Paula]

Hello @Tim3961, welcome to our community 😊

There are some great pieces of advice from our amazing Hosts. Let us know when you have the opportunity to read them.