How do you quote your prices?

[dgsevier]

Very informal poll here. Thanks in advance for your thoughts.

When quoting rates to potential renters do you quote:

1) Total prices including rental, housekeeping and taxes
2) Rental price + housekeeping + taxes
3)Rental price including housekeeping + taxes
4) Some other combo I haven't thought of.

I'm curious in the psychology of potential renters hearing/seeing a lower rental cost and having the other parts tacked on versus the idea of an "all inclusive" pricing model.
Again, thanks for your thoughts.

 

[Matt J]

Your best bet is an all inclusive price. Start tacking on other fees, charges, and taxes and people will just walk away.

 

[Mango]

The psychology is, no matter what combo you use, they will always ask you your rental rates.

 

[gmarc]

as a renter for 19 years i think psychlogically the owner should not list the taxes and all other fees. just like buying a car the initial price catches the eye. flipping thru vrbo many people list a base price and mention nothing about taxes or housekeeping fees.

 

[Just_In_Thyme]

We include the total price and break it out so the rentor knows what it entails. I they appreciate know everything from the beginning, and not getting hit with extras when it is time to pay.

 

[ShallowsNole]

Whatever y'all do, remember

(1) if you charge the guest a separate housekeeping fee, or any other fee that is a condition of occupancy, better charge tax (full - both state and county bed tax) on it too, and

(2) if you throw an all-inclusive price out there, when filing your taxes you need to divide the total received by 1.11 to determine the actual amount of rent to claim as taxable rental. Otherwise, you will be cheating yourself. Example: $1200.00 received, inclusive of taxes and other fees. $1200.00 divided by 1.11 = $1081.08. $1081.08 X 4% = $43.24 for the bed tax and $1081.08 X 7% = $75.68 to send to FDOR. Add it back up $1081.08 rent + $43.24 bed tax + $75.68 sales tax = $1200.00.

If the bed tax increases to 5%, of course the factor to use will become 1.12. :roll:

P.S. If anyone out there is sitting there thinking to themselves "do I actually have to charge tax?" or "doesn't it all go to the Florida Department of Revenue?", please PM me...been some misinformation going around

 

[TooFarTampa]

Thanks for that formula ShallowsNole. Sometimes I get inquiries from people who say they only want to pay x amount including taxes, and I'm never sure how much rent that would actually be.

On my VRBO page I quote a rate that includes cleaning and add a note that 11 percent taxes are not included. The reason I do this is because almost everyone does it the same way. I thought about doing a total that includes taxes, but then I might lose potential renters who think we are more expensive than equivalent properties.

When replying to an initial inquiry I always break it out for them and then add the total. I think renters appreciate as much information as possible. This is off topic, but I have also started to include my address and zip so people can look it up on Google Maps (have had a lot of requests).

 

[ShallowsNole]

No problem, TFT...

And a lot of people on VRBO who do not list info about taxes, aren't collecting them.

 

[Rather B Paddlin]

No problem, TFT...

And a lot of people on VRBO who do not list info about taxes, aren't collecting them.

Hmmmmm, on more than one occasion we have had potential renters say that in the past other owners did not charge them tax. They acted very suprised when we told them about the 11%. Very interesting.

 

[ransom]

As a renter, I want to know what the total is going to be. I have, in the past, had some "surprises" and I really don't like those. Just show me the bottom line so I can make an informed decision.