A Guide to Smart Pricing for Short-Term Rentals
🡐 Back to Resources | August, 2025 | Written by Kurt Russell
Pricing is one of the most powerful levers for short-term rental (STR) success. Set your rates too high and you risk empty nights. Go too low and you leave money on the table. Smart pricing strategies balance market demand, guest expectations, and revenue goals to keep your property competitive year-round.
This guide covers the essentials of how to set competitive rental rates for your STR, avoid common mistakes, and maximize profitability in 2025.
Why Smart Pricing Matters
Airbnb and other platforms rank listings not only by quality and reviews, but also by price competitiveness. The right pricing strategy ensures:
Higher occupancy rates during both peak and off-peak seasons
Stronger visibility in search results
Optimized revenue through dynamic adjustments
Better guest conversion when your property feels like a fair deal
Want a broader revenue boost? Check our blog on 10 proven ways to increase STR occupancy.
Step 1: Understand Your Market
Begin with research. Look at comparable properties in your neighborhood to understand nightly rates, amenities offered, and seasonal fluctuations.
Tools like AirDNA and PriceLabs analyze competitor pricing and demand trends, helping you avoid guesswork.
Curious which tool is best? Read our AirDNA vs PriceLabs comparison.
Step 2: Use Dynamic Pricing Tools
Manual pricing can’t keep up with demand shifts. Dynamic pricing software adjusts rates automatically based on:
Local events and holidays
Seasonality (high vs. low travel periods)
Occupancy levels in your area
Top tools include:
PriceLabs – powerful rule-based pricing logic
Beyond – intuitive and integrates with most PMS tools
Wheelhouse – flexible with solid analytics
For a full tech stack, explore our best STR software tools guide.
Step 3: Balance Occupancy and Revenue
High occupancy doesn’t always equal high profits. Sometimes charging slightly higher rates for fewer nights generates better returns. Experiment with:
Minimum stay requirements during peak times
Discounts for weekly or monthly bookings
Last-minute deals to fill unexpected gaps
See our blog on the power of flexible bookings for ideas that keep occupancy steady.
Step 4: Leverage Your Amenities
Pricing power comes from differentiation. Listings with premium amenities can command higher nightly rates. Highlight features like:
High-speed Wi-Fi and workspaces
Hot tubs, pools, or outdoor spaces
Kid- or pet-friendly setups
Not sure what to add? Our Airbnb essentials guide breaks down must-haves that boost guest satisfaction.
Step 5: Monitor and Adjust Regularly
Smart pricing isn’t “set it and forget it.” Review your performance monthly, noting occupancy, average daily rates (ADR), and revenue per available night (RevPAR). Adjust to reflect changing guest demand, local competition, and reviews.
Need help balancing all this? See how Clear Stay combines dynamic pricing strategies with professional management to maximize results.
The Clear Stay Advantage
At Clear Stay Properties, we don’t just manage properties — we optimize them for profitability. Our team:
Analyzes your market for competitive positioning
Implements dynamic pricing across multiple platforms
Combines pricing with design, guest experience, and marketing strategies
Tracks performance with detailed reporting for owners
With Clear Stay, you’re not guessing on rates — you’re leveraging data and strategy for sustainable revenue growth.
The Takeaway
Smart pricing is the backbone of a profitable STR strategy. By understanding your market, using dynamic tools, and balancing occupancy with revenue goals, you can ensure your property stays competitive and consistently booked.
👉 Ready to see how smart pricing could boost your income? Fill out the form below to schedule your free consultation with Clear Stay Properties and let us tailor a strategy for your property.