The Only Airbnb Estimator You Need in 2021

Are you looking to invest in short-term rentals in 2021? If you are just getting started, you might be asking yourself, “Is Airbnb profitable?” The short answer is YES. Becoming an Airbnb host is one of the best ways to make money in real estate. Generally, short-term rentals generate more annual revenue than traditional rentals. Furthermore, Airbnb CEO Brian Chesky has recently announced that millions of new Airbnb hosts will be needed in the coming months as travel resumes.

However, it is common knowledge that not all Airbnb properties generate good returns. If you want to power your Airbnb business, you need to forecast your potential returns before buying an Airbnb investment property. The best way to this is to use Mashvisor’s Airbnb estimator.

In this article, we are going to discuss how Mashvisor’s Airbnb calculator can help real estate investors make better investment decisions and beat the competition in 2021. So keep reading.

What Is an Airbnb Estimator?

An Airbnb income estimator is a variation of the investment property calculator (also known as a rental property calculator) that helps investors conduct Airbnb investment property analysis. Mashvisor’s Airbnb estimator uses reliable Airbnb data and analytics to accurately analyze the profitability of Airbnb investment opportunities in the US housing market.

The Airbnb data provided by the Mashvisor real estate investment tools comes straight from Airbnb.com. So, you don’t have to spend weeks gathering Airbnb data and doing projections on spreadsheets. All the key Airbnb data and analysis you need to make smarter Airbnb investment decisions can be found using Mashvisor’s Airbnb estimator in a matter of minutes.

What Airbnb Estimates Does the Airbnb Estimator Provide?

Mashvisor’s Airbnb estimator provides investors with a wide range of Airbnb big data and Airbnb analytics that you need to find the best Airbnb investment property for sale.

Here is a list of the Airbnb data and analytics that you can access with our revenue calculator:

Start Analyzing Airbnb Properties

1. Airbnb Occupancy Rate

Vacation rentals tend to experience fluctuations in bookings due to seasonality, which is usually unique to each short-term rental market. Therefore, to determine the expected Airbnb rental income of an investment property, it’s crucial to know the Airbnb occupancy rate. The higher the Airbnb occupancy rate, the more Airbnb rental income you’ll be able to generate each month. High Airbnb income will ensure that you are covered during off-season and that you avoid cash flow problems. Mashvisor’s Airbnb estimator provides investors with Airbnb occupancy rate estimates based on the performance of comparable rental properties in the area.

2. Airbnb Rental Income

Airbnb rental income is a key number for investors as it determines potential cash flow and return on investment. For any property listed on the Mashvisor online property marketplace platform or any off market property whose address you enter, our revenue estimator will provide highly accurate estimates of potential Airbnb rental income. This rental estimate is based on the Airbnb daily rate and Airbnb occupancy rate of comparable short-term rental listings in the neighborhood (Airbnb rental comps).

Apart from calculating Airbnb cash flow and return on investment, investors can use this data to determine how much to charge for rent. Our rental income calculator also provides rental income estimates for traditional properties. This allows you to easily compare the profitability of the two rental strategies and determine the optimal rental strategy in terms of rental income.

3. Airbnb Rental Expenses

When it comes to real estate investing, spending money is a must. You have to spend money to make money. Having an estimate of expected Airbnb rental costs will help you be prepared before you buy Airbnb property. These estimates are also useful in calculating expected cash flow and return on investment. Our rental calculator will provide you with a list of the major one-time startup costs as well as the monthly recurring rental expenses. You will also get the total for each of these categories.

Airbnb rental expenses that are readily available on Mashvisor’s Airbnb estimator include:

One-Time Startup Costs

Inspections
Closing costs
Total repair costs
Furniture and appliances

Monthly Expenses

Property tax
Rental income tax
Insurance
Property management
HOA dues
Property maintenance
Cleaning fees
Utilities

As an Airbnb owner, you’ll typically have more recurring costs than a traditional rental owner, or a landlord. Some of these expenses may not be included in the calculator. The good thing about our rental income calculator is that it allows you to modify the provided expenses and to add custom costs as you see fit.

4. Airbnb Cash Flow

Airbnb Estimator 2021: Mashvisor Investment Property Analysis

Mashvisor’s Airbnb Estimator

Airbnb cash flow is the difference between monthly Airbnb rental income and monthly expenses. As a beginner real estate investor, it is recommended that you focus on positive cash flow properties. A positive cash flow property will pay for itself and provide you with a monthly income stream.

To ensure you only invest in a positive cash flow property, conducting cash flow analysis is important before buying. Our Airbnb profit calculator provides you with readily calculated Airbnb cash flow estimates for any property you analyze.

5. Airbnb Cap Rate

Capitalization rate, or cap rate, is a return on investment metric that real estate investors use to quickly compare the profitability of investment opportunities without taking into account the financing method. However, calculating Airbnb cap rate can be time-consuming if you analyze multiple income properties for sale. Fortunately, you can access readily-calculated cap rate estimates on our Airbnb estimator.

6. Airbnb Cash on Cash Return

Airbnb cash on cash return is another key return on investment metric. But unlike the Airbnb cap rate, this metric takes the financing method into consideration. If you are financing your purchase with a real estate investment loan, your Airbnb property analysis is not complete without calculating Airbnb cash on cash return. If you don’t know how to calculate it, don’t worry. With our Airbnb income calculator, you have it pre-calculated for you.

7. Airbnb Rental Comps

When you decide to invest in Airbnb property, one important question to answer in order to maximize your rate of return is, “How much should I rent my house for?.” To get an answer to this question, you need to conduct a detailed rental market analysis. This involves running Airbnb rental comps, which means Airbnb rentals in the area which are as similar as possible to the one that you are considering buying or already own.

While there are different ways to find rental comps, the easiest and fastest way is to use Mashvisor’s Airbnb price estimator. This tool provides you with a list of active Airbnb rental comps for each property on the platform. You’ll be able to see how the rental comps are performing in terms of nightly rate, rental income, occupancy rate, and rating.

With this information, you can determine how much you can charge in terms of Airbnb rent to maximize your occupancy rate and rental income. If you want to be competitive in the local Airbnb rental market, running Airbnb rental comps is a must in 2021.

8. Financing Method

Before you purchase an Airbnb rental property, you should keep in mind that your financing method will have a huge impact on your cash flow and return on investment.

If you want to know if your method of financing will yield a good ROI, our Airbnb estimator has an inbuilt mortgage calculator. You simply enter your mortgage details, and you’ll be able to see how each the size of the down payment, the loan type,and the interest rate affect your Airbnb cash flow and Airbnb cash on cash return.

The Bottom Line

Airbnb hosting can be a lucrative business in 2021 but only if you purchase the right property and rent it out at the right rate. If you want to make the best investment decision, one of the most important Airbnb tips is to find run the numbers. Mashvisor’s Airbnb estimator makes your rental property analysis easier as you can access accurate and reliable Airbnb data and analytics in a matter of minutes.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

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Mashvisor: The Only Airbnb Estimator You Need in 2021