One Simple Move Can Increase Your Vacation Rental’s Annual Rent by at Least 30%!

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Hello, and welcome to Snowball Rentals’ WeChat account, where you can read about recent developments in the US short-term rental market.

Looking back to when Snowball Rentals first entered Airbnb property management, one of the first rentals we took over was a very upscale lake-view house.

Before we took over, however, its rental income was far below expectations. After many experiments and much research, Snowball Rentals successfully raised monthly rent from US$3,000–4,000 to more than US$10,000.

What was the secret? We used just one very simple technique that increased the rental income of this high-end short-term rental by 30%. Today, we will share it.

Price anchoring: creating a sense of relative value

When Snowball Rentals took over this lake-view house, we analyzed why it was not renting.

The problem was not the house itself, but the price. This four-bedroom house could sleep eight people and cost nearly US$500 per night, while nearby four-bedroom listings cost only a little over US$200. This roughly twofold price difference made potential guests feel it was too expensive.

We then thought of a common pricing psychology technique: price anchoring. People's judgments of value are often relative, rather than absolute.

Instead of lowering the price, we chose to increase the property's relative value.

For example, a supercar priced at US$200,000 may seem extremely expensive and difficult to accept. How does the dealer sell it?

The answer is to introduce a few limited-edition supercars priced at several million dollars. Their main function is attracting attention and making the ordinary US$200,000 supercar seem cheap by comparison.

That is how price anchoring works: relative comparisons change consumers' perceptions of price.

A simple, effective solution

Instead of directly reducing the US$500 price, we added sleeping spaces: two additional bunk-bed sleeping arrangements increased the property's capacity from eight to 14 people.

At US$500 for 14 people, the price now appeared to offer better value.

After relisting, this small change kept monthly rental income above US$10,000 for six consecutive months.

However, adding beds is not a cure-all. Done incorrectly, it can backfire.

Common mistakes and things to watch for

1. Uncomfortable additional beds: initially, we added a sofa bed, but its poor comfort led to negative reviews. For example, this

type of sofa bed is both uncomfortable and very fragile. There are many heavy people in the United States, and after a year of use, the sofa legs are bound to be damaged.

We ultimately chose a pull-out sofa, like the one pictured below. This type is both comfortable and durable, helping avoid similar negative reviews.

2. Raising the nightly rate directly reduces occupancy: after adding beds, simply raising the nightly rate can reduce occupancy. A better approach is to

keep the original rate but charge for additional guests. For example, we kept the US$500 nightly price, but charged US$25 per person per night starting with the ninth guest.

When more people stay, rental income therefore increases without affecting overall occupancy.

3. Overcrowding: if a house has only one bathroom, it is best not to accommodate more than six people. We found that above this number,

the experience worsens and negative reviews increase. These guests also tend to be price-sensitive, have lower expectations for living quality and cause more damage to the house.

These experiences gave Snowball Rentals more confidence in short-term rental management. This simple strategy can increase revenue without reducing prices, but remember: extra beds must be added in moderation, or they may backfire.

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As a homeowner, you may now be wondering: my home is quite good, but how much could it earn on Airbnb? Would it earn more than a long-term rental? Would it involve a lot of trouble?

Contact us right away! We will evaluate it for you free of charge.

If you:

Hope to increase rental income through short-term rentals;

Cannot spare a great deal of time to handle the small details;

Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

As the weather gets cooler, Seattle’s short-term rental low season is approaching again.

Short-term rentals in peak season and mid-term rentals in low season: this is the new strategy we have repeatedly emphasized and tried this year! Some recent large bookings have been like a ray of sunshine. Homeowners, let us support one another and face the approaching low season with confidence.

The detached house below, located in Renton, has an estimated long-term monthly rent of approximately $3808, which can be looked up on Redfin.

The owner placed great trust in the Snowball Rentals team, commissioning us to furnish it and then immediately begin short-term rental operations.

Fortunately, it received a large booking shortly after listing!

As shown in the booking screenshot below, a guest rented this house through Airbnb for a total of 119 nights. Without deliberately planning it, a short-term rental became a mid-term rental.

The rental income plus cleaning fee for this booking reached $23088!

Converted to a monthly figure, this short-term/mid-term booking generated approximately $5820 per month.

In summary, with Snowball Rentals operating this detached house, monthly rental revenue rose from $3808 for a long-term rental to $5820, an

increase of more than 52%.

Securing such a large booking in low season is no easy feat!

Look more closely: this booking's 119 days run from October 4 this year to January 31 next year—the source prints “January 31 month”—covering nearly four months of the short-term rental off-season, September through the following March. As a newly furnished house with excellent condition and location, we believe it can achieve further strong results before peak season arrives.

For homeowners, combining short- and mid-term rentals in this way can earn more in peak season and help them get through low season smoothly. Even if the low-season rental figures look less dramatic, they still outperform long-term rentals and give homeowners a strong sense of financial security.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

Here, we again thank the owner for placing trust in the Snowball Rentals team!

After nearly two years of Airbnb’s downturn, we at Snowball Rentals hope to help owners make steady progress in low season, navigate the challenges safely and lay a better foundation for next year’s peak season.

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

Here is the before-and-after furnishing comparison for the detached home described above:

When choosing a short-term rental on Airbnb, would this home’s appearance attract you?

If you would also like to make your home more attractive and earn more rent, please contact us at any time!

This Week’s Short Videos

We regularly update short videos every week.

The content you need is all here.

👇🏻 Homeowners are welcome to follow us 👇🏻

Snowball Rentals

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Snowball Rentals

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Snowball Rentals

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We also share practical vacation-rental styling plans and creative ideas to help you achieve more with less spending!

Keep rental income growing!

Xiao An’s Vacation-Rental Styling

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Referral Rewards

If you are already a Snowball Rentals homeowner, you receive a US$500 referral fee for each referral.

If you are not yet a Snowball Rentals homeowner, you receive a US$250 shopping voucher for each referral.

Snowball Rentals Management

1. Full service — We provide pre-launch rental design, furniture procurement, furnishing, professional photography, online marketing, copywriting, tenant service and sales, cleaning, supply purchasing and property repairs. You only need to be a hands-off owner; we handle the rest.

2. Multi-platform promotion — We promote the home on Airbnb, VRBO, HomeAway and other mainstream platforms for maximum exposure.

3. Dynamic pricing — Using big data, we adjust prices every day according to seasonal demand, holidays, last-minute vacancy offers, weekends and local activities, maximizing the owner’s income.

4. Income-improvement SOP — We follow 44 secrets for maximizing short-term rental income, optimizing each property’s online marketing, on-site operations and other aspects to work toward maximum income.

5. Flexible owner stays — Owners can flexibly choose when to stay themselves. This is especially suitable for owners with multiple residences around the world.

6. Terminate at any time — Management does not require an annual commitment. The owner can end the agreement with one month’s advance notice.

7. Corporate housing — In addition to nightly rentals, we work with insurers and assignment companies to provide executives with hotel-style managed accommodation for stays longer than 30 days.

8. Transparent fees — For rentals longer than 30 days, we charge 15% of accommodation revenue. For nightly rentals under 30 days, we charge 20% of accommodation revenue.

Author’s tip: Personal views, for reference only.