It’s crucial for Airbnb investors to access the current short term rental data and analytics. Read to learn what AirDNA can do for Airbnb owners.
Vacation rentals are thriving again. Since many people are getting vaccinated against COVID-19, we can expect the country’s tourism industry to flourish. It is why many real estate investors can find favorable opportunities in the Airbnb business.
To be successful in Airbnb investing, investors need access to the most up-to-date short term rental data and analytics so they can make educated decisions. The good news is, there is an abundance of real estate data platforms available online. However, since access to most of the platforms requires payment, finding one that is efficient and cost-effective can be challenging.
One of the most popular online real estate data platforms available is AirDNA. The platform provides data analytics solutions for short term rental investors and claims to help Airbnb hosts make accurate calculations on pricing. By assisting the investors with optimizing their pricing strategies, AirDNA claims that it helps investors maximize their returns and competitiveness.
How Does AirDNA Work?
AirDNA currently offers two types of services. The first one is called MarketMinder, which is marketed to provide short term rental research, dynamic pricing, and strategic planning services. The service includes providing different metrics for global Airbnb rental properties. It aims to help investors know where to invest and set the right price for their vacation rentals.
The second service is called Enterprise Solutions, which offers customized insights and Airbnb analytics that claim to help investors grow their business. The service includes solutions such as property-level data, real estate market trends, forecasts, and lead generation tools. Additionally, investors who subscribe to Enterprise Solutions can request and download the information they need.
MarketMinder: What It Does for Airbnb Investors
Real estate investors can conduct their market research through the MarketMinder. According to its website, AirDNA MarketMinder obtains data from over 10 million properties worldwide on both Airbnb and Vrbo. However, the said Airbnb analytics platform only updates its database once a month—that is, 12 times per year. It means that the data provided by AirDNA is not real-time. The lack of more frequent updates is something Airbnb investors need to consider, mainly because it’s crucial to access real-time information to make profitable investments.
Aside from doing market research, MarketMinder is also advertised to provide a dynamic pricing tool for short term rental investors. AirDNA claims to help investors optimize their Airbnb pricing strategy so they can improve their revenues and make profitable investments. The pricing tool, known as Smart Rates, can provide investors with personalized pricing suggestions for up to one year. According to the company’s website, Smart Rates use rental data and market demand analysis to create customized pricing for Airbnb investors.
AirDNA also states that its MarketMinder solution provides rankings, resources, and reports to help investors find the best places to buy rental property. In addition, MarketMinder allows short term rental owners to connect their Airbnb listings to the platform’s database and create their custom comparable set. It aims to gauge their properties’ performance based on future occupancy, booked rate, and lead time for reservations.
Enterprise Solutions: What It Does for Airbnb Hosts
The Enterprise Solutions service is not only targeted at real estate investors. Its website states that other industries like academics, property managers, tourism organizations, and hedge funds managers can also benefit from this service. This service provides industries with information such as market intelligence, pricing and revenue management, investment research, and lead generation tools.
AirDNA markets its Enterprise Solutions as an industry-specific solution that seek to help vacation rental investors find the information they need to grow their Airbnb business. It aspires to provide real estate market insights and reports that include property performance, market trends, and forecasting. Airbnb investors can also get access to complete reports, including reviews on every Airbnb property.
Moreover, Enterprise Solutions also provide investors with tourism reports, vacation rental valuations, and AirDNA’s most recent outlook report on the Airbnb industry. The service for real estate investors includes all the features in MarketMinder, as well as a short term rental calculator and market comparison tools.
AirDNA Rentalizer: What Is It and How It Works
The AirDNA Rentalizer tool works like a rental property calculator. It calculates the earning potential of an investment property. It’s good for investors who want to get a general overview of their potential revenues and returns. According to AirDNA, the Rentalizer tool also provides estimates for vacation rental appreciation and/or depreciation. Moreover, it can be used to help investors calculate future returns based on seasonality.
To use the Rentalizer tool, you need to enter a street address, the number of bedrooms and bathrooms, and how many persons a property can accommodate. AirDNA’s algorithm collects a list of relevant properties, considering other metrics like seasonality, demand, and revenue growth. The Rentalizer calculator then makes predictions on the earning potential of the property based on annual revenue, average daily rate, occupancy rate, one-year forecast, and Airbnb comparable analysis.
The downside of using the Rentalizer calculator is that you are required to enter an address before you can use it. The need to enter a specific street address is a drawback, especially for investors who are unsure of where to invest. An article from Medium.com says short term rental calculators can help Airbnb hosts find the most profitable locations for future Airbnb investments. However, with AirDNA Rentalizer, investors cannot search for a property directly on the platform. Such a limitation makes the Rentalizer tool not useful for those who are not familiar with the available homes for sale.
Fortunately, investors can search for properties using another platform, like Mashvisor’s Property Finder tool.
How Much Do AirDNA Solutions Cost?
The cost of AirDNA depends on the subscription plan you choose. Currently, it offers three subscription plan options, including:
- MarketMinder: A platform for hosts and investors, which comes with three available pricing options:
- Access to one market with less than 100 active listings: $19/month
- Access to one market with up to 1000 active listings: $39/month
- Access to one market with more than 1,000 active listings: $99/month
- Enterprise: The Enterprise plan provides custom data solutions—investors need to contact the sales support for a custom quote.
- Unlimited Access: The plan provides unlimited access to MarketMinder’s insights and global markets. It costs either $599 or $999 per month, depending on your billing preference (monthly or annually).
How Does Mashvisor Compare With AirDNA?
Mashvisor is a one-stop shop for real estate investors who need access to real estate market data, insights, and analysis. Mashvisor is also an Airbnb data analytics platform that provides an in-depth investment property analysis to help Airbnb investors find the most profitable Airbnb investment. Further, the platform provides access to comprehensive and accurate data and analytics to help assess the performance of actual Airbnb rentals.
Unlike AirDNA, the Mashvisor web page allows you to search for properties available for sale by typing your preferred state, city, neighborhood, or zip code. It also offers several real estate investing tools that are useful for your real estate investing journey. The tools can help you understand the market trends, get an overview of a property’s earning potential, and optimize your rental income strategy.
Let’s do a Mashvisor review and check how its investing tools and features work. Let’s also find out how it can help both novice and experienced investors achieve their goals.
Mashvisor’s Property Finder and Search Feature
Mashvisor includes Property Finder and a Search feature to help both new and experienced real estate investors find the best place to invest in vacation rentals. The Property Finder tool allows you to search for the best performing Airbnb investment properties for sale in up to five areas at a time. You can use filters to narrow down your results, such as property price, property type, and the number of bedrooms and bathrooms.
Mashvisor uses machine-learning algorithms to generate a list of available investment properties for sale that meet the criteria that you specified. The generated results are ranked according to the properties’ rates of return, meaning the ones with highest returns will appear first. It helps investors quickly find the most profitable properties available for sale in a particular location.
Mashvisor’s search engine feature is also available to help investors find listings from MLS, as well as foreclosures and off market properties. You can also use the filters to customize your results. Once you choose a property from the search results, you will then be directed to a page where you can find the complete Airbnb dataset and investment property analysis.
Mashvisor’s Property Analytics
After searching for available properties for sale using your customized specifications, you can then click on a property that interests you. It will lead you to a page where you will see the details of the property, including rental income, expenses, cash flow, cash on cash return, cap rate, and occupancy rate. You can also view the neighborhood analytics to see the rent analysis of similar properties within the area.
The AirDNA’s interface requires investors to go to other tabs to see more detailed information about a specific investment property. On the other hand, Mashvisor presents the real estate market data and insights of an Airbnb property in a way that even new investors (who have no prior experience in short term rental investing) can understand.
Mashvisor’s Property Analytics provides comprehensive analysis of an Airbnb investment property. It includes reports and insights for Airbnb comps so you will see how other similar listings perform. What’s more, you can also directly contact the agent or the seller of the property through the Mashvisor’s interface. It allows you to close the deal quickly, especially if you are really interested in buying the property.
Mashvisor’s Airbnb Calculator
Another important feature of Mashvisor’s investing platform is the Airbnb calculator, which is an interactive tool that allows you to input your own figures to get more personalized estimates. The goal of Mashvisor’s Airbnb calculator is to provide accurate data analysis to investors so you’ll get an idea of what the property’s income potential look like before buying it.
The best thing about Mashvisor’s Airbnb calculator is that you can enter your own numbers, such as comparable rental income, mortgage details, and expenses. The calculator will then use your data to compute the potential cash flow, cash on cash return, and cap rate of an investment property.
At the bottom portion of the page, you’ll find the 10-year investment payback balance table. The table is a projection of your estimated accumulated earnings based on the figures that you entered. Don’t know what figures to input? No need to worry! Mashvisor includes its own estimates based on in-depth research and AI algorithms.
Unlike the AirDNA’s short term rental calculator, Mashvisor allows you to browse for investment properties for sale using the search feature or the Property Finder tool. When you click on a listing that you like, you will find the property’s details and the Airbnb calculator on the same page. It lets you see all the important information that you need in one page, without the need to switch tabs. It is advantageous if you want to view all the necessary data and analyze how it can affect your profitability.
Mashvisor’s Subscription Plans
Mashvisor offers three subscription plans to choose from, which are:
- Lite: $17.99 /month
- The Lite plan provides estimates for long term and short term rental rate, offers rental ROI projections, and helps investors choose the best properties based on investment opportunity scores.
- Standard: $49.99 /month
- The Standard plan includes all the features from the Lite plan, plus it allows investors to discover the most profitable properties and markets and compare similar Airbnb and long term rental rates. It also provides a side-by-side comparison of properties and exports 20 searches to Excel per month.
- Professional: $74.99 /month
- The Professional plan includes all the features from Lite and Standard plans, plus it helps investors find multifamily and foreclosure properties and export 60 searches to Excel per month. It also exports property PDFs, as well as upload and analyzes property listings.
Mashvisor vs. AirDNA: Which Is Better?
When deciding which real estate investing online platform to buy, it’s essential to know all the features and services offered by each company. It’s also important to take a close look at or test the tools so you can see how each platform works and which one is easier to use.
Based on our research, both AirDNA and Mashvisor offer accurate real estate data analysis. However, Mashvisor’s interface design contains all the important information you need, including the rental calculator, on the same page. Further, when using the rental calculator, it allows you to search for a property without a specific street address. It is why Mashvisor is easier to use for investors of all levels.