How to Price Your First Airbnb or Short-Term Rental Property (Without Undercutting Your Value)
Setting the right price for your first Airbnb or short-term rental is more than just checking what other hosts charge. Many first-time hosts look at competitor prices and then just match them. This often means you're missing out on potential income or, worse, attracting the wrong guests. This guide shows you how to use competitor pricing as useful market information, not as a limit on what you can earn.
READY TO TAKE ACTION?
Use the free LaunchAdvisor checklist to track every step in this guide.
The quick answer
Look at other listings to see the typical price range for short-term rentals in your area. This helps you understand what guests expect to pay. But don't just copy their prices. Your price should reflect your property's unique value, its amenities (like a hot tub or fast Wi-Fi), and the experience you offer. Then, compare your price to the market to make sure it makes sense.
Side-by-side breakdown
Direct research: Browse Airbnb, VRBO, Booking.com, and local vacation rental sites. Look at listings similar to yours (same number of bedrooms, location, amenities). Check their nightly rates, cleaning fees, and any other charges. Pay attention to how prices change for weekends, holidays, or peak seasons. This gives you public pricing but doesn't show what guests pay after special offers or how often properties are actually booked.
Indirect research: Read guest reviews on competitor listings. Sometimes guests mention if they felt a stay was a good value or too expensive. Check local Facebook groups or Reddit communities for discussions about short-term rentals in your area. Look at local hotel prices for basic comparison, but remember, hotels offer different experiences.
Primary research: If you know people who frequently book short-term rentals in your area, ask them what they typically look for and what they expect to pay for a place like yours. Ask about their past experiences and if they felt they got good value. This feedback can be very direct and helpful.
When competitor pricing is useful
Use competitor prices to make sure your nightly rate isn't way too high or low compared to similar properties. If all one-bedroom apartments in your neighborhood rent for $100-$150/night, and you want to charge $300, you need a strong reason (like a private hot tub, stunning views, or a luxury kitchen). You might also spot gaps: maybe no one offers a budget-friendly room, or no one focuses on luxury family stays with a full game room. This also helps you see what's expected (clean towels, basic Wi-Fi) versus what guests will pay more for (a smart TV with streaming, a fully stocked coffee bar, early check-in/late check-out options).
When to ignore competitor pricing
Don't just follow competitor prices if your listing offers something truly different. For example, if your spare room is just a bed, but theirs is a newly renovated suite with a private entrance and kitchenette, you can't compare directly. Also, if you see properties that are always booked but have terrible reviews about being cheap and dirty, those hosts are likely underpricing and struggling to attract quality guests. You don't want to copy their low rates and deal with similar problems. Focus on the value and experience you provide, not just what others charge.
The verdict
Before you list your property on Airbnb or VRBO, take time to check out what other hosts are charging. Create a range from the cheapest basic room to the most expensive luxury entire home in your area. Figure out why the top-tier places can charge more (e.g., they offer a pool, concierge service, or are beachfront). Then, decide on your price based on your property's features, location, and the experience you want to offer. Finally, see how your chosen price fits within the market range. This ensures your price is fair and competitive, reflecting your unique value.
How to get started
Create a simple spreadsheet. List five to ten similar short-term rental properties in your area. For each, note: * Listing Platform: (e.g., Airbnb, VRBO) * Property Type: (e.g., private room, entire apartment, 3-bedroom house) * Nightly Rate: (average, also check weekend/seasonal rates) * Cleaning Fee: * Key Amenities: (e.g., Wi-Fi, kitchen, free parking, hot tub, pet-friendly) * Guest Capacity: * Notes: (e.g., 'very basic,' 'luxury decor,' 'great reviews on cleanliness') Look for the listings that charge the most and understand what makes them premium. This quick exercise (about two hours) will give you a clear picture of your market and help you price confidently.
RECOMMENDED TOOLS
Semrush
Research competitor positioning, keywords, and who they are targeting
SpyFu
See competitors' paid keywords — often reveals their pricing strategy
Google Trends
Track demand shifts in your product category
Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.
FREQUENTLY ASKED QUESTIONS
What if no competitors publish their pricing?
Call them as a prospect. Most sales conversations will yield at least a range. Review G2, Capterra, and Reddit for price mentions. Ask your prospects: 'What are you currently paying to solve this problem?' — that reveals the effective market rate better than any published pricing page.
Should I be the cheapest option in my market?
Almost never. The cheapest position attracts the most price-sensitive customers, produces the thinnest margins, and makes you the first to lose clients when a competitor cuts further. Price for the segment you want, not for everyone.
Apply This in Your Checklist