Name a city where you think an Airbnb rental property will succeed. As a beginner real estate investor making this kind of guess without Airbnb rental data, you’re likely to run into the following issues:
Airbnb is illegal in that city or there are strict regulations in place there.
This is the first reason why real estate investors need Airbnb rental data now more than ever. Many of the most popular cities- the ones where we’d think an Airbnb rental would thrive in- are looking to eliminate this form of short term rental. That leaves an Airbnb investor with two choices:
- Turn to the other popular cities you can think of
- Look for hidden real estate investing opportunities
You may already see an issue with the first choice. Any “popular” city that still allows Airbnb rentals in the US will probably end up being so competitive that you may struggle to break into this market. And don’t forget, your short term rental won’t only be competing against other investments. Homeowners renting out on Airbnb will also be your competitors.
Learn about one reason why Airbnb regulations are being adopted: Housing Market Trends: How Airbnb Affects Home Prices and Rents
There may also be cities that come to mind that allow a non-owner occupied property to operate as an Airbnb rental. However, there could be restrictions in place such as:
- High tax rates
- Limited days the property can be rented out for
- Required permits/business licenses that have annual fees
- A limit on how many properties can be rented out on Airbnb
Real estate investing 101- Every single thing on that list will affect your cash flow (how much money you make with your Airbnb investment property after deducting rental expenses). So even when a city allows Airbnb investments, it may not be the most profitable location.
That leaves a real estate investor with the second choice: Identify hidden Airbnb investment opportunities. These are cities that not only allow Airbnb real estate investing, but they’re places you can really make a profit with your rental property. This is much harder to achieve using the old-fashioned methods like turning to your network or word of mouth. Because while these methods can lead you in the right direction, you won’t be able to confirm the location makes for a smart investing move. Only with Airbnb rental data can you be sure.
How can you find hidden investment opportunities using Airbnb rental data?
The first step to achieving this would be to do your homework on where Airbnb is legal.
Be sure to research cities where, not only is Airbnb legal now, but it will remain legal in the long term future. These are typically cities where the short term rentals are recognized, pay taxes, and are lightly regulated.
Once you have your list, you’ll see some cities on there that you may never have considering buying an investment property in to rent out on Airbnb. Those are the cities we are looking for.
Now, choosing any of those cities and any neighborhood in those cities to buy rental property in would be a mistake. Further research on the health of the real estate market, economy, and tourist trends will help you narrow down the list. It’s unlikely you’ll end up with one city, however. Only Airbnb rental data can bring you to that one, great investment opportunity. But what kind of Airbnb rental data do you need here? You need:
- Median property price of Airbnb rentals
- Potential Airbnb rental income
- Airbnb occupancy rate data
- Average return on investment of an Airbnb rental property
Unless you analyze all of these things, you won’t be able to hone in on that ideal location. And because not many real estate investors utilize rental data (or at least the right kind), you will likely have the upper hand in that market.
Where can you find this kind of Airbnb rental data?
The best way to get Airbnb rental data is with using online real estate investment tools. They’ll help you analyze an Airbnb location within minutes. The easiest tool to use in this case is a heatmap. With a heatmap analysis, you can view specific locations and review the Airbnb rental data listed above.
You can find this kind of heatmap with Mashvisor. Sign up here to start looking for the best locations to invest in real estate now. And it’s not just for Airbnb investors!
Mashvisor’s heatmap allows you to view neighborhoods within a city that have high Airbnb rental income, occupancy rate, and ultimately a high return on investment (cash on cash return). With this kind of tool, you can easily access Airbnb rental data in a user-friendly manner.
Related: Heatmap Analysis: The Secret to Successful Real Estate Investing
It can be hard to find a profitable Airbnb investment there.
No matter where a real estate investor looks, it can be hard to find a profitable Airbnb rental property. If it were easy, every investor would be a successful one. That’s why, now more than ever, you need Airbnb rental data.
Think of it like this, if there’s a market where strict regulations are in place, you need to find an investment property that can still make you a good ROI.
If you’re choosing to invest in a popular real estate market where Airbnb is legal, you’ll need something to give you that competitive edge.
If you follow our advice above and decide to seek out markets that aren’t oversaturated with investors, you still need to move quickly. Nothing stays hidden long.
But any rental property won’t suffice. You need a profitable one and that’s what Airbnb rental data can get you.
Related: Want to Succeed with Airbnb Real Estate Investing? Read This!
How can you find profitable investment properties with Airbnb rental data?
Airbnb rental data that is specific to an investment property should include:
- Expected rental income
- Rental expenses (estimates)
- Cash flow
- Cap rate
- Cash on cash return
- Occupancy rate
- Rental comps
Every type of rental data on this list is a key indicator of profitability. Eliminate one and you won’t have the full picture of whether or not you have a successful property on your hands.
Where can you find this kind of Airbnb rental data?
For this kind of Airbnb rental data, you’ll have to turn to another digital investment tool: the Airbnb profit calculator. The ideal Airbnb profit calculator is one that will let you know if a rental property used as a short term rental will make you money or not- plain and simple.
Get a closer look at this tool: Airbnb Profit Calculator: The Ultimate Real Estate Investment Tool
The great thing about Airbnb rental data is that, even though not all real estate investors have discovered its power, it is easily accessible through online platforms. Mashvisor is one of the best for providing up-to-date Airbnb rental data (and traditional data) for every investor- from the beginner to the expert.
To take advantage of the heatmap and Airbnb profit calculator, click here to start your 14-day free trial with a 20% discount after!
