Investing in Airbnb and short term rentals is a great way to earn a lucrative income from real estate. Since the rise of home-sharing platforms like Airbnb in the late 2000s, short term rentals have become popular among both vacation-goers and business travellers.
To be successful in short term rentals, you’ll need to invest in the right market. Fortunately, the RentoCalculator—Mashvisor’s Airbnb investment calculator—can help you find the best short term rental investment in less than 15 minutes.
Mashvisor’s Airbnb calculator collects its data from reliable sources, including actual Airbnb rental properties. It provides accurate and up-to-date information that can help you make the right investment decision in just a few minutes.
While there are several vacation rental calculators available online, none of them provides the accuracy, convenience, and ease that the RentoCalculator offers.
Other Airbnb rental calculators online require you to input the data needed to calculate your potential Airbnb income. This means that you need to perform your own research to access the information that you need, which can be prone to error.
With the RentoCalculator, you don’t need to do your own research because all the necessary data is already provided for you.
Moreover, this Airbnb income calculator computes all other important metrics, including:
Cash on cash return
Using the RentoCalculator is fairly simple:
Search for an investment property by simply typing your preferred city or neighborhood using Mashvisor’s Property Finder tool.
From the search results, find a property that interests you the most and then click on it.
From the property’s information page, scroll down to find the rental strategy. You will see the cash flow, cash on cash return, cap rate, and occupancy rate of the property based on its comparable rental income and monthly expenses.
Customize the expenses as you see fit.
Use the mortgage calculator to customize your preferred financing.
Mashvisor’s RentoCalculator is considered the best Airbnb calculator in the market because it provides a complete analysis of the property that you are eyeing. If you’re asking yourself, “How much can I make on Airbnb?” — then this tool will give you the right answer.
Using the RentoCalculator helps you:
Identify the property’s potential Airbnb rental income
Determine the property’s profitability based on several metrics—including cash flow, cash on cash return, cap rate, and occupancy rate
Get accurate and customized results by allowing you to add custom expenses and customize your financing options
Compare the property’s profitability based on long term and short term rental strategies
Decide whether the property will make a good investment or not
The potential income you can earn from an Airbnb investment will greatly depend on the market in which you are investing.
While short term rentals are generally a lucrative investment, you have to remember that not all locations are optimal for short term rental investing. Also, there are several metrics to consider when determining the profitability of an investment property.
With the help of the RentoCalculator—Mashvisor’s Airbnb profit calculator—you can easily find the Airbnb income estimate of a particular investment property.
It’s crucial to look for an investment with positive cash flow that can generate a cap rate and cash on cash return of at least 8 to 10%. Also, the investment property should have an occupancy rate of 50% or more.
In general, investing in Airbnb is a great source of passive income. In fact, since home-sharing platforms became famous more than a decade ago, many Airbnb hosts have benefitted from earning generous returns.
Here are a few good reasons why Airbnb will make a good passive investment:
To start investing in Airbnb, you need to identify the best short term rental market with high demand from renters that can provide the highest possible profits.
The process for investing in Airbnb is pretty straightforward:
The most profitable type of Airbnb property will greatly depend on your location and target market.
In most cases, hosting a single-family Airbnb home can generate better profits if you target families or groups of friends to rent the entire property at once. The Airbnb rental estimate for renting out an entire property is usually much higher compared to renting out a single room.
In some areas, owning a condo unit to rent out as a short term rental provides better profits, especially if you target solo travelers and/or business travelers. It’s important to compare different types of Airbnb properties using the RentoCalculator—Mashvisor’s Airbnb occupancy calculator—to see which one has higher occupancy rates and can generate better profits.
Since Airbnb is a seasonal business, the amount you can charge as an Airbnb host should depend on whether it is peak or low season.
As an Airbnb owner, it’s crucial to be aware of the events in your local area to know the seasonality of vacation rentals. You are also recommended to use a dynamic Airbnb estimator to determine the best Airbnb daily rate depending on the season.
With Mashvisor’s Airbnb hosting calculator, you will have a general idea of the average short term rental daily rate in a particular location, as well as the comparable monthly rental income. This Airbnb income estimator gives you an idea of how much you can possibly earn from a particular investment property.