Whether you’re already investing or planning to jump on the Airbnb real estate investing bandwagon, there’s one thing that you need to succeed: Airbnb analytics.
Today, almost all real estate investors know there’s a lot of money to be made from the short-term rental market. Revenue from the STR industry reached $83.9 million in 2019 alone, most of which was generated in the United States ($17.507 million). The said revenue figure is also expected to record an annual growth rate of 3.7%, resulting in a market volume of $97 million by 2023! However, besides being lucrative, the short-term rental market is also one of the most competitive markets for making money in real estate that you could get into.
As more and more people decide to invest in Airbnb vacation rentals, thriving requires a whole lot more than listing your home on the short-term rental site. You need to find out if your vacation home for rent is actually going to give you a good return on investment (ROI). The best way to figure that out is by using Airbnb data analytics. Of course, you don’t want to waste time searching for Airbnb data, organizing it into spreadsheets, and updating them every time you come across an investment opportunity. It is just unnecessary work, as you can find the data and analytics online.
So, where can you find Airbnb analytics in 2022? Keep reading as we explain what Airbnb data to look for and where to get it. By the end of this article, you’ll know exactly how to access Airbnb analytics that will help you identify and seize the best Airbnb investment opportunities in the US housing market 2022.
What Is Airbnb Analytics & Why Do You Need It?
Airbnb predictive analytics refers to gathering big Airbnb rental data, analyzing, and interpreting it. It includes all the crucial figures, ratios, and percentages that you need to understand how profitable buying an Airbnb property is and how to increase your ROI. But they aren’t just numbers; they’re much more.
Airbnb data analysis utilizes both traditional and predictive analytics – meaning it uses past and current data to make accurate projections for future market trends. If you’re a short-term rental host/investor, you’ll definitely want to take advantage of this amazing real estate investment tool.
Primarily, Airbnb data analytics will allow you to make sound investment decisions with confidence. That’s because you’ll be able to find the best cities to invest in Airbnb, as well as the best vacation homes for sale in your real estate market of choice.
Another benefit of Airbnb data and analytics is that they help you mitigate risk when investing in Airbnb rentals. The biggest advantage of having access to Airbnb host analytics, however, is the analysis of Airbnb return on investment metrics that’ll give you a better idea of how your vacation rental will perform in the long term. Together, they will help you succeed with the Airbnb rental strategy and keeps you ahead of the competition.
How to Access Airbnb Analytics
As mentioned earlier, you don’t need to look for Airbnb rental data on your own – can you imagine just how stressful finding and organizing real estate data analytics is? As a real estate investor, the only way to make sound decisions based on data and analytics is if you use the right tools and resources.
However, you can’t trust any just source that offers a form of Airbnb data. It begs the question: What is the best Airbnb analytics platform that allows you to run an accurate Airbnb investment analysis and ensure you’re making money in the short-term rental market?
While you might come across many real estate investor websites online, the best platform for your Airbnb rental business is Mashvisor. That’s a bold claim, we know, but we’ve got all the reasons to believe real estate investors will find the Airbnb data they’re looking for here. Mashvisor’s algorithms and machine learning models give you deep insights and predictive analytics related to Airbnb rentals in the US housing market.
The information is presented in an easy-to-understand format for investors to find precisely what they’re looking for in a matter of minutes. Whether you’re a first-time host or have been renting out your vacation home for years, keep reading to learn how Mashvisor’s Airbnb data analytics and tools can help.
What Airbnb Analytics You’ll Get with Mashvisor
Listed below are the different types of information you can get from Mashvisor’s Airbnb data analysis:
A) Market-Level Airbnb Data
The market-level Airbnb data from Mashvisors includes:
1. Real Estate Market Data
If you’re thinking of buying an Airbnb property in 2022, finding the best cities for Airbnb investment must be the first thing on your mind. Location is a major factor for successful Airbnb real estate investing and high Airbnb ROI. As a result, performing Airbnb data analysis on your neighborhood of choice is vital to make sure you choose a profitable location.
It is especially important, given that Airbnb regulations have been and continue to be passed in major tourist US cities that are typically an investor’s first choice for starting a vacation rental business. So, although your choices of where to invest in Airbnb may be limited, you can still easily find profitable locations using Mashvisor’s Airbnb data analytics.
As a real estate investor, you should study Airbnb regulations and find a few locations where running non-owner-occupied rental properties is legal. Make sure to also do a quick Google search to check what the state of the tourism industry and demand for short-term rentals is like in these locations. After doing your Airbnb market research, it’s time to see what Airbnb data analysis says about investing in these locations. The type of real estate data you’ll need to narrow down your list includes:
- Median Listing Price
- Average Airbnb Occupancy Rate
- Monthly Airbnb Rental Income
- Average Airbnb Return on Investment (Cash on Cash Return and Cap Rate)
There are two ways to find such types of Airbnb data on Mashvisor. First, you can head to our real estate investment blog. There, you’ll find the latest Airbnb data analytics of cities in the US housing market 2022. Not only that, but we also keep our readers up-to-date with the latest Airbnb laws and regulations in the said cities.
You can also find Airbnb analytics and regulations in our Market Reports. There, we provide an in-depth market analysis of major US cities, including an Airbnb investment analysis already done for you. This will help you decide on your location for investing in Airbnb and make smart decisions accordingly.
2. Neighborhood Data Analytics
When talking about location in real estate investing, we don’t just mean which city to invest in – but the specific neighborhood as well. Having access to the relevant neighborhood data related to Airbnb investments is crucial because different neighborhoods within the same city have different investment potentials.
For example, some neighborhoods never see tourists during the year while others (those close to popular and attractive places like city centers, beaches, or universities) can be packed with tourists, making them ideal for Airbnb real estate investing. So how can you find out which neighborhoods are best in your city of choice?
Digging a little deeper and researching tourist stats on neighborhoods is one way, but this info can be hard to find. Instead, Airbnb data analytics reveals everything you need to know! If vacation home rentals have performed well in the past in a certain area, predictive analytics will determine if buying an Airbnb here is expected to remain profitable in the future as well.
An Airbnb host/investor can find this info in our blogs as well since we typically list the best neighborhoods for investing in Airbnb in different cities. But, the best place to access Airbnb data analysis for neighborhoods is Mashvisor’s Heatmap Analysis Tool. This is what this real estate investment tool looks like:
As you can see, this is basically an overview of different areas within a city. There are different filters that you can use to analyze the different neighborhoods based on Airbnb analytics. Simply play around with these filters, and you can find the most profitable neighborhood for Airbnb in your city of choice.
You want to find one with an affordable listing price, high Airbnb rental income, good cash on cash return, and a high Airbnb occupancy rate. This combination of Airbnb data analytics means you’ve found a neighborhood where you can afford to buy an Airbnb investment property that will promise a good ROI. Want to try it out?
B) Property-Level Airbnb Data
Now that you’ve found a great location for starting a short-term rental business in 2022, it’s time to find the best Airbnb investment property in that location. Luckily for you, this can also be done using our Airbnb analytics platform. Mashvisor comes with an Airbnb Profit Calculator that provides eight types of data that every real estate investor needs to carry out an Airbnb investment analysis.
1. Airbnb Rental Income
Wondering how much to charge for rent for your Airbnb? You probably know that to compete in the short-term rental market, you can’t just set whatever rental rate you want. You need to have an Airbnb pricing strategy that takes into account local rental listings, expenses, and occupancy rates. When you have an Airbnb calculator like the one Mashvisor provides, you won’t have to look for all of that on your own!
The first Airbnb data analytics that our tool provides is the comparable rental income for your investment property. Mashvisor finds rental comps for you and estimates the expected Airbnb rental income based on data for every listing. Keep in mind, however, that the results you get aren’t a given. Airbnb host analytics only produces estimated figures based on which you can decide for yourself.
2. Airbnb Costs & Fees
Owning a vacation home rental is much like owning a traditional, long-term rental in the sense that it can be quite expensive. Rental expenses that come with investing in Airbnb properties include tenant turnover, property management fees, property insurance, taxes, etc.
Before setting a final rental rate, Airbnb hosts need to factor in these costs and fees of owning an Airbnb. After all, no one wants to buy a rental property that they can’t afford and end up losing their investment. Thanks to the Airbnb predictive analytics provided by Mashvisor, you can rest assured that you won’t make this mistake.
Our Airbnb Profit Calculator shows estimates of property expenses for any listing on the platform. These estimates are typically averages of the area. Moreover, our interactive investment tool breaks down these estimates and allows you to adjust any of the costs and fees based on your Airbnb market research.
You’re even able to add any extra costs (both one-time startup and reoccurring) that are unique to you and your vacation rental property. Mashvisor will then re-calculate the ROI metrics so you’ll get to see how rental expenses affect your Airbnb return on investment.
3. Airbnb Cash Flow
When investing in rental properties, cash flow is king. Cash flow in real estate is basically the rental income minus expenses. The number you have left is the money and profit that goes into your pocket. Airbnb hosts/investors should make sure they’re investing in vacation homes that generate positive cash flow – it means the rental income outweighs your expenses and allows for profits. There is nothing worse than buying an Airbnb property only to end up with negative cash flow!
Just because you have Airbnb data analytics on rental income and expenses doesn’t mean you need to calculate cash flow on rental properties manually. Mashvisor’s Airbnb Profit Calculator takes all the Airbnb data and automatically runs the numbers. So by just clicking on a listing that interests you, you can immediately tell whether or not it has rental potential to make positive cash flow as an Airbnb short-term rental.
4. Airbnb Occupancy Rate Data
This is the main driver of your vacation home rental business. Airbnb occupancy rate is the ratio of the time in which your rental is occupied compared to the time it’s vacant. If it’s low, Airbnb hosts need to charge a lower rental rate in order to attract people and, thus, face the risk of negative cash flow.
To avoid buying an Airbnb investment property that’ll sit vacant most of the time, you must understand what affects occupancy rates. It includes factors like location, seasonality, the vacation home itself, and Airbnb reviews. However, the best way to understand what kind of occupancy rate to expect is through Airbnb occupancy rate data.
For every rental property for sale listed on Mashvisor, you’ll find Airbnb occupancy rate data. Mashvissor’s Airbnb data analysis is based on rental comps in the housing market where the vacation home is located. To get this type of Airbnb data analytics, Mashvisor pulls Airbnb listings, calendar bookings, host information, reviews, and more details from Airbnb from the past five years.
Using the said historical data, we then calculate the property’s Airbnb occupancy rate by counting its bookings over the past 12 months, day by day and month per month. As a result, we provide both monthly and annual Airbnb occupancy rate data.
Furthermore, because our Airbnb Profit Calculator is interactive, you can adjust the occupancy rate and see how it affects your Airbnb return on investment. It is especially helpful if you’re thinking of buying an Airbnb property with low occupancy with a plan to increase it.
5. Airbnb Return on Investment
The Airbnb return on investment is probably the most important type of Airbnb data analytics investors need. When you’re in the initial stages of investment property search, it can be difficult to calculate the potential ROI. First, you need to gather different types of data and make sure that they’re accurate. Then, you must run the numbers following different calculations on the rate of return on rental property (the cash on cash return and the cap rate calculations).
If done manually, anyone can easily get mixed up and end up with false results. In turn, it would lead to making the wrong investment decision! This is why you need a tool that puts Airbnb data to work and calculates ROI metrics like CoC return and cap rate with the power of predictive analytics.
This tool, of course, is the Airbnb Profit Calculator. Using predictive real estate data, Mashvisor provides reliable cash on cash return and cap rate values for every property to tell you how profitable it’ll be as a rental investment. CoC return is the ratio between a property’s cash flow and your total cash investment.
You can use the built-in mortgage calculator to adjust your total investment, which includes your down payment, closing costs, and any needed renovation costs. As for the cap rate, it’s the rate between cash flow and the property’s purchase price (you don’t need to include financing details).
Mashvisor offers all of the above real estate data for the same property as an Airbnb rental vs. traditional rental to provide a rental strategy comparison. It should help you make sure that Airbnb is the optimal rental strategy. In other words, you’ll guarantee that the property you’re choosing to invest in comes with a higher Airbnb return on investment than a traditional ROI.
6. Airbnb Rental Comps
Having Airbnb comps is crucial for everything from determining property value to setting the right nightly rate. To create your own set of Airbnb comps, you need Airbnb data for every short-term rental that is similar to yours in the real estate market. As mentioned, gathering such Airbnb data analytics on your own is going to take a lot of time and effort.
In addition, having to organize them into spreadsheets to then manually identify which ones qualify as comps is not only hard but can lead to mistakes in your Airbnb data analysis. Hence, it only makes sense that the best Airbnb analytics platform allows you to access Airbnb comps. With Mashvisor, you don’t have to go through this trouble as we provide readily available Airbnb comps for any listing you find on the platform!
7. Data on Airbnb Reviews
Successful Airbnb hosts/investors know how important it is to get positive reviews. As mentioned, it’s one of the factors that affect your Airbnb occupancy rate. It means that positive reviews can boost your occupancy, while bad ones can ruin your short-term rental property business. But have you ever wondered how many positive reviews you need to actually see an increase in your occupancy rate?
It is something that any real estate investor wants to know but can only be done with Airbnb data analysis that you can get from Mashvisor. When analyzing vacation homes using the Airbnb Profit Calculator, our predictive analytics will show you how many Airbnb reviews you need and how much the occupancy rate is expected to increase. This is only a small glimpse of the power of data and analytics, which can be helpful for hosts, investors, and even Airbnb property managers.
8. Airbnb Investment Payback Balance
The last Airbnb data analytics that you absolutely need when investing in Airbnb rentals is your investment payback balance. This type of real estate data allows you to see the amount of money or profit the rental property will have generated in the future based on its current Airbnb statistics. You can switch between monthly or annual calculations to track how the short-term rental will perform over the next 12 months or 10 years.
Mashvisor takes the gross revenue, total expenses, net rent, Airbnb tax, cash flow, and startup costs all into account to calculate and give you an estimate of the Airbnb property’s projected investment payback balance. It allows you to know if the property will be making or costing you money, as well as the amount of time it’ll take for the Airbnb investment property to generate X amount of money.
Get Access to Airbnb Analytics Today!
Now you know how to get Airbnb data and exactly what Airbnb analytics you need to thrive in the short-term rental market this year.
If you want to access them all, start out your 7-day free trial with Mashvisor now.