Are you considering investing in Airbnb rentals? That’s a smart move as owning an Airbnb investment property can end up being quite profitable. But to make good money with Airbnb rentals, you need to do a lot of research upfront. And researching how much to charge for rent is one of the most crucial tasks for an Airbnb investor. After all, to get more bookings and increase your Airbnb rental income, you need to have the right Airbnb pricing strategy. One way to optimize your Airbnb pricing is to use an automated Airbnb pricing tool.
There is a variety of Airbnb pricing tools available that are designed to help real estate investors make their investment properties more profitable. Thanks to these tools, you no longer have to spend hours devising an Airbnb pricing strategy. They do the heavy lifting when it comes to doing the math. One popular example is Airbnb Smart Pricing which sets your Airbnb nightly rate automatically. The tool will also continue to update the set price, pushing it up or down based on changes in demand for comparable listings.
However, most Airbnb pricing tools that you’ll come across in the market only tell you how much to charge. While this data is important, any savvy Airbnb investor will tell you that this data alone is not enough to maximize your potential return. Since competition in the short-term rentals industry is quite tough, real estate investors need to arm themselves with the top Airbnb tools available to beat the competition. That’s why investors need an Airbnb pricing tool that can do more – that’s why they turn to Mashvisor’s Airbnb calculator.
In this blog, we are going to introduce you to Mashvisor’s Airbnb pricing tool and the array of important Airbnb data it provides.
How to Use Mashvisor’s Airbnb Calculator to Price an Airbnb
Mashvisor’s Airbnb pricing tool can help you determine how much to charge for rent for any Airbnb property listed on the platform or even for an off-market real estate property whose address you manually add to our database. It does this by providing Airbnb nightly rate and monthly Airbnb rental income data:
This dynamic pricing software provides highly accurate estimates for nightly rates based on Airbnb rental comps from hundreds of active listings.
Because you need to estimate Airbnb income to know how much money you can expect to make each month, Mashvisor also provides this data. The estimated monthly Airbnb rental income is a product of the nightly rate and Airbnb occupancy rate of these comps.
What Else Does Mashvisor’s Airbnb Pricing Tool Offer?
As mentioned, becoming a successful Airbnb investor is not just about choosing the right nightly rate. Even before you invest in Airbnb, you want to make sure that the property has the highest profitability potential. Mashvisor’s Airbnb calculator is a type of rental property calculator that has been designed to help Airbnb investors make the best investment decisions through Airbnb analytics. With a few clicks of a button, you can access a comprehensive list of key Airbnb metrics that you need to optimize your short-term rental investment.
The tool uses data gathered from Airbnb and all of our calculations and analytics are verified by hosts, so you can be confident in the numbers you’re seeing. It basically turns several months of research into a few minutes. This allows you to locate profitable Airbnb investment properties for sale before everyone else.
Apart from helping you figure out how much to charge, here is a breakdown of the additional data that our Airbnb pricing tool provides:
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
1. Airbnb Rental Expenses
Our calculator will provide you with estimates for one-time startup costs and recurring rental expenses you should expect to pay. These numbers are based on the prevailing market rates. This data is useful in calculating other key Airbnb metrics.
One good thing about this Airbnb pricing tool is that you can manually adjust any of these readily available Airbnb rental expenses and also add other expenses you know of that may not have been included. The tool will immediately show how other calculations have been affected.
2. Airbnb Occupancy Rate
As stated earlier, Airbnb occupancy rate is one of the variables used to forecast Airbnb income. Mashvisor’s Airbnb pricing tool provides investors with Airbnb occupancy rate data too. Naturally, the higher the Airbnb occupancy rate, the higher the rental income regardless of the seasonal fluctuations in demand. This means that the property will generate enough income to cushion you during off-seasons and prevent cash flow problems.
Related: Where Can You Find Airbnb Occupancy Rate Data for Real Estate Investing?
3. Airbnb Occupancy Rate Insights
Airbnb reviews can seriously affect your occupancy rate. But do you know how much of an impact they will have? Mashvisor answers this question with our Airbnb occupancy rate insights. Find out how many positive reviews you need to boost your occupancy rate and how much the rate will go up.
4. Cash Flow
To keep your short-term rental property profitable, your Airbnb rental income must cover the rental expenses. If not, you will end up with negative cash flow and risk falling into foreclosure due to missed mortgage payments. Therefore, a cash flow analysis should be part of your Airbnb investment analysis if you want to invest in positive cash flow properties. The Airbnb calculator provides readily calculated cash flow estimates so that you don’t have to do the calculations manually.
5. Airbnb Return on Investment
The most important performance measure for evaluating the profitability of an Airbnb investment is the Airbnb return investment. This is usually calculated using two metrics depending on whether the method of financing is taken into account or not. These metrics are Airbnb cash on cash return and Airbnb capitalization rate (cap rate). Our Airbnb pricing tool computes both of these metrics too.
6. Airbnb Rental Comps
Before buying an Airbnb rental property, it’s important for investors to run a rental market analysis to see how other similar Airbnb properties in the area (Airbnb rental comps) are performing. Mashvisor’s Airbnb pricing tool makes your work easier by providing active Airbnb rental comps.
Related: Where Can You Find the Best Airbnb Rental Data?
The Bottom Line
Using a typical Airbnb pricing tool to do your due diligence on pricing can help you devise an effective strategy and help you gain a competitive advantage. However, most of the Airbnb tools are quite shallow and won’t provide you with all the Airbnb data that you need to maximize your return on investment.
What makes Mashvisor’s Airbnb calculator the best Airbnb pricing tool is the tremendous amount of useful data and analytics it offers. Apart from Airbnb nightly rate and Airbnb income estimates, you can get access to many other important metrics and measures. Together, all these numbers will help you make more profitable Airbnb investments.
To get access to our Airbnb investment tools, click here to sign up for Mashvisor today.