Rentals as slow all of a sudden

[David8170]

Hello, 

What I am contacting you today is on what is happening in the market.  What can you tell me about the market here on the West Coast of Florida?  Do you have any reports which can be provided?  Even since COVID I have been raising my rates to get that perfect balance of 80 percent occupancy.  This year is much different. It started good with dates filling up as usual but for the past 2 months, rentals are dead. I have lowered my prices twice now across the board and still no new rentals. As I get to within 30 days of a date, I usually drop the rate considerably. Better a rental at $178 a night than no rental at all. 

Any insights you can provide would be wonderful. 

Thank you,

[Karen114]

@David8170  It's the economy..  I understand that the media is touting rainbows and unicorns and all is great however that's simply not true.  

If your avatar guest is Gen x or Baby Boomer you might be OK.  If your avatar is millenial or Gen Z they are struggling. Inflation, credit card debt at its highest, student loans, interest rates, lay offs. 

 The cracks are starting to show for these  age groups. They don't have the discreationary income that the older folks may have.

Lowering your nightly right where you are just swapping dollars is not a good plan either.  I would figure out your bottom number and stick to it.  If it doesn't rent at the bottom number then get comfortable with vacancy.  The lower you go with rate, you will get low quality guests that will end up costing you with damage, rule breaking and poor reviews.