Airbnb occupancy rate is the number one factor that determines your success in investing in short term rentals or Airbnb rental properties and your key on how to make money in Airbnb rentals.
As Airbnb rental income and return on investment depend entirely on Airbnb occupancy rate, you have to check what Airbnb occupancy rate to expect in 2018, how to maximize your Airbnb occupancy rate and much more. This blog, like many other blogs published on Mashvisor’s website, is here to help you succeed as a real estate investor and make the best real estate investments.
It is unquestionable that location heavily affects Airbnb occupancy rate and also how much you can charge guests. For instance, if you have an Airbnb listing in Manhattan, NYC that is close to big attractions in the city, more people will want to book your listing compared to an Airbnb listing in the city of Fairfax, Virginia that requires an uber or a car to reach any subway or the downtown. You can, for example, have a room for two guests in Manhattan and charge an average nightly rate of $125 compared to $50 in Fairfax for the same dates.
However, before buying Airbnb investment property, there are many things you need to know. Thus, read “What You Need to Know Before Buying an Airbnb Investment Property“ to learn more.
What Does Mashvisor Data Tell Us About Airbnb Occupancy Rate in 2018
One of the many beneficial features provided by Mashvisor is that it has accurate and precise data about Airbnb occupancy rate. Interestingly, Airbnb occupancy rate differs not only between cities in the same state but also between neighborhoods in the same city. According to Mashvisor, the highest Airbnb occupancy rate for 2018 can be found in Mission, a neighborhood in San Francisco, California, where the Airbnb occupancy rate is 74.91%. The Airbnb cash on cash return for this neighborhood is 0.54%. On the other hand, the neighborhood of Central City in Phoenix, Arizona scores the lowest Airbnb occupancy rate of 20.15% and consequently, an even lower Airbnb cash on cash return.
Although the element of location is a very important factor that affects Airbnb occupancy rate, there are many other factors such as how close the listing is to restaurants and touristic sites, etc.
Does data make real estate investors rich? Read “How Data Makes Real Estate Investors Rich: A Mini Guide“ to know.
However, focusing only on Airbnb occupancy rate as a separate element in investing in Airbnb rentals is misguided. Occupancy rate matters a lot for investors investing in traditional or long-term rentals because having a property sit empty for weeks or months can cost investors dearly. However, when it comes to Airbnb rentals, there is an obvious equation between Airbnb occupancy rate and nightly rate. Therefore, with Airbnb, you should not focus exclusively on Airbnb occupancy rate and ignore the nightly rate. You certainly can get almost 100% Airbnb occupancy rate, but at what price? There is an equation between charging too little and getting high Airbnb occupancy rate vs. charging too high and ending up with many unfilled nights.
Locations With the Highest Airbnb Occupancy Rate For 2018
San Francisco, California: 86%
New York City, New York: 80%
Boston, Massachusetts: 77%
Seattle, Washington: 77%
Washington, DC: 71%
Chicago, Illinois: 71%
Philadelphia, Pennsylvania: 64%
Factors That Affect Your Airbnb Occupancy Rate
With the increasing use of Airbnb, there is no doubt that the competition between Airbnb hosts is only going to intensify. Therefore, you need to make sure that your Airbnb listing is optimized and able to stand out on the Airbnb website. In order to do that, there are certain questions that you need to check and be aware of, including:
Does your Airbnb listing have reviews?
Is your listing rated well?
Is your listing clean and furnished nicely?
Does it have all the basic amenities that all travelers need?
Are you publishing clear and different photos of your listing?
Do you have an eye-catching and realistic description of your property?
Are you a quick responder to inquiries?
First impressions matter a lot, so make sure you represent your listing on the Airbnb website in a way that appeals to guests that you want to attract. Moreover, having reviews, whether good or bad, is better than not having reviews at all and plays a role in increasing your Airbnb occupancy rate. In other words, you have to market your listing in a way that meets the guests’ expectations and never overprice.
Are You A Good Airbnb Host?
If you notice, most of the views on Airbnb, whether good or bad, focus on the way the host deals with guests. Travelers choose Airbnb not only because it is easy to book and can be more affordable than hotels or motels, but also because they want to stay in a place that feels like home, away from hotels’ vibes. Therefore, it is your responsibility as a host to be in constant communication with them and make sure they have a safe and comfortable stay at your place. Make sure to answer all their questions prior to and upon their arrival and prepare a friendly and convenient place for them to stay in.
Read “The Ultimate Guide on How to Become an Airbnb SuperHost“ in order to become one.
Tips on How to Guarantee a Successful Investment in Airbnb Rentals and High Airbnb Occupancy Rate
Before buying an investment property for the purpose of short-term rentals, make sure to conduct investment property analysis to estimate cash on cash return and other important figures related to a real estate investment.
Always try to price your property in accordance with its location, the type of amenities you provide, your property’s age and the season of the year.
Make sure to get reviews and always encourage your guests to write reviews as they play a role in increasing your Airbnb occupancy rate.
When thinking about investing in Airbnb or listing your property as a short term rental, think about the way in which you can optimize your prices to create a balance between Airbnb occupancy rate and nightly price by keeping your Airbnb property as full as possible with the highest price possible.
But wait, that does not happen without getting proper real estate education and professional tools needed to make the best real estate investments and that is why Mashvisor was createHurryrry up and sign up here to enjoy successful investing.