The number one question we get asked by interested homeowners is “how much money can I make renting my home?”
It's hard to put an exact number on this question considering our estates rent anywhere from $2,500-$25,000+ a day.
With the majority of our estates ranging from $3,000-$8,500 a day.
Lets take a look at some of the factors that would alter the rental price of an estate...
Here are several factors to consider when pricing out a location:
-- Location: Where is your estate located?
-- Capacity: What would the event capacity be?
-- Accessibility: Is it easily accessible?
-- Features: Are there any unique features?
-- Amenities: What amenities are included and what would need to be provided?
Lets dive into each one and provide you with more detail...
Where is your estate located?
Is your property on an oceanfront cliff in Malibu or in a residential community 3 hours from the nearest hotel?
Location, Location, Location (it really is a HUGE factor in pricing an estate).
Here are 3 examples where the location of the estate will greatly influence the price.
1. Malibu Oceanfront Estate --
One of our most popular requests from renters is a private estate with beach access or an oceanfront view.
Large properties that are sitting on prime oceanfront real estate will be extremely desirable and people will be willing to pay more for the view.
Also, many oceanfront properties do not have a whole lot of land so neighbors tend to be very close, and this will most likely limit the amount of events this particular home may be able to have(i.e. due to noise violations, and other laws).
So if you have a home that is located right on the water and is also relatively close to neighbors(note: very rare to have an oceanfront property without neighbors close-by, however, if you do, then your property just became more desirable), you would be looking at being able to safely rent your home about 8 days a year for a price tag in the range of $10,000-$20,000 a day.
2. Ranch Style Property in Temecula, Ca --
You may have a beautiful ranch style property on acres of land, but it may be difficult to get to or it may be inconvenient for out-of-town guests (i.e. far from hotels, restaurants, shopping, etc.).
Don’t worry too much because there is definitely a large market for your property.
The great thing about your home/ranch is that we can rent it more frequently at a more affordable rate.
These types of locations often attract locals or people who live in nearby cities.
A ranch style property located in Temecula will range from $2,500-$6,000 per day.
3. Penthouse in Downtown LA --
With downtown LA growing and with more and more conventions coming into town, downtown LA is a highly desirable location, especially for corporate groups.
Although penthouses tend to have small capacity limits (usually 50-70 guests) these properties can still demand a high price tag.
A penthouse in downtown LA or any major city will typically rent from $5,000-$15,000 per day.
What is the capacity and how does it affect the price?
The capacity of a location can vary greatly and properties that can accommodate more guests can often charge a higher rate for a higher guest count.
The majority of our locations vary in price depending on the guest count.
-- Up to 50 guests- $3,000
-- Up to 100 guests- $4,000
-- Up to 150 guests-$5,000
-- Up to 200 guests - $6,000
So for a location that can only accommodate 50 guests, we may not be able to fluctuate the price based on guest count, but if the location can accommodate 300+, the property fee would increase accordingly.
Is your location easily accessible?
There are many times that we receive images of a beautiful home and we go out to meet with the owner and not only is the property difficult to find, but there are narrow/windy roads, difficult access points, no parking or no place for a shuttle to drop-off and/or pick-up guests, etc.
Accessibility is a key factor for many people when choosing a location.
If they can't find it, then you have to thing about their 100 guests who are from out-of-town?
If it becomes too much work for a potential renter to plan the logistics of transportation then they may decide the property is not worth the hassle.
Or if there are extra fees associated with renting open lots, creating appropriate signage, etc. then the location needs to consider those added costs when determining the location price.
Are there any unique features to your home?
There are many WOW factors of many of the homes that are represented on Estate Weddings and Events, but properties with really unique features or a great story behind it, are often more desirable than just a pretty home(although we love pretty homes too).
Any location that has been in the movies will be considered more desirable, especially with corporations that are wining and dining their clients in California.
Former celebrity homes also make for a great story.
Even if your home was never in Hollywood, some other great selling points are ocean views, beautiful pools, waterfalls, indoor reception spaces, built in bars, covered terraces, pocket doors, overnight accommodations for large groups, etc.
Another factor we consider when pricing out a home is what amenities are included and what would need to be provided(i.e. what do we need to haul-in to make this "event venue ready").
Do we have access to restrooms?
If we don’t offer access to any restrooms clients will need to rent them.
Luxury restroom rentals can range from $1,500-$2,500 depending on the size and delivery fees.
The renter will consider this added cost when making their decision.
Are overnight accommodations available?
Overnight accommodations add a lot of value to a location(Big Bonus for this).
When people choose to get married at an estate they envision the wedding weekend full of celebrations.
To offer a place to host the rehearsal, wedding and Sunday brunch is a huge bonus.
Is there enough power on property to properly execute an event without issues?
A generator is often needed at an estate to handle a large scale event, however, if the property is restricting access to a power source, the client will need to factor in a large commercial generator which can cost $1,000+.
Interior access? Are guests allowed to use the interior of your home?
If guests are limited to the outside only, then a designated place for the bridal party to get ready will need to be factored into the price in addition to a back-up plan for rain.
A tent is almost always needed as a back up plan, even for properties with interior access.
However, if the guests have no interior access they will need a sequence of tents to accommodate all activities (note: this can get extremely pricey).
So as you can see, there is a lot that goes into determining the rental price(and there is more, we just wanted to provide you with some key factors) of a private estate and we are here to help determine that.
If you have any questions and would like to know what you can rent your home out for, please contact us today.
Or feel free to ask your question in the comments below...