Short term rental Base Pricing

[Jeremiah Dye]

Hello all!

My wife and I purchased a small studio on the beach in Panama City Beach, Fl. We’ve owned it since spring of ‘22. After purchasing there has been a few special assessments and they are killing us and there are more to come. If it wasn’t for them we would be making some profit, like we estimated.

We came up with a base price by adding up yearly expenses and then divided them into the days between March and October and then utilizing dynamic pricing. This strategy puts us higher than everyone else. Are we doing this right? It’s available 365 days, but during winter demand is low to none. That’s why we chose 200 days as available.

The studio is nothing fancy, budget friendly for a couple with 2 small kids. Is our pricing strategy sound? Is this just growing pangs for new STR owners? We're using AirDNA and Airbnb smart pricing to help with the dynamic pricing and to see what other hosts are charging.