A Guide to Smart Pricing for Short-Term Rentals

🡐 Back to Resources | August, 2025 | Written by Kurt Russell

An image depicting a homeowner checking competitive prices for short-term rentals on a laptop, illustrating the importance of market research in setting optimal rates.

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.

A seasonal chart showing fluctuating demand for short-term rentals, underscoring the role of seasonality in setting competitive rental prices.

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.

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Turning a Home Into an Extraordinary Guest Experience

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The Benefits of Short-Term Rentals in Tourist Hotspots