It comes as no surprise that the key factor that affects your Airbnb investment property is Airbnb occupancy rate. Your Airbnb rental income and return on investment depend greatly on Airbnb occupancy rate. However, finding locations that offer high occupancy rates can be overwhelming. That is why this blog post was prepared to shed light on the best Airbnb occupancy rate by city in the US housing market for 2018.
Location not only affects your Airbnb occupancy rate but also how much rent you can charge your guests per night. Most of the areas that have high occupancy rates are the ones that attract tourists. In tourist destinations, there is usually a high demand for Airbnb properties which gives Airbnb hosts the opportunity to raise rents to match the increase in demand. Before we jump into the best Airbnb occupancy rate by city let’s take a look at some of the factors that affect your Airbnb occupancy rate.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Related: What Kind of Airbnb Occupancy Rate Can You Expect?
What Factors Affect Your Airbnb Occupancy Rate?
1. Advertising your Airbnb property
With Airbnb investments becoming so popular, there is a lot of competition to look out for. The key to attracting guests and maintaining a high Airbnb occupancy rate is through marketing. How you market your short-term rental determines your occupancy rate. You need to make sure that your Airbnb listing stands out and is found on multiple homes rental websites like Airbnb, HomeAway, and booking.com etc.
Make sure your Airbnb listing is precise and has accurate details for your property. Nobody wants to rent out a property only to find out that the owner over exaggerated with the description. Also, include pictures of your rental property to show potential guests exactly what your property looks like from the inside. In simple words, you have to market your listing in a way that meets your guests’ expectations.
2. Your Airbnb hosting skills
Are you a good Airbnb host? If not then this could affect your Airbnb occupancy rate. The first thing that guests write about in their reviews is the host. Was the host good or bad at dealing with the guests? People choose Airbnb rentals as an alternative to overpriced hotels, but that does not mean that they don’t expect to stay in a place that feels like home and is comfortable. As an Airbnb host, it is your responsibility to communicate with your guests and ensure they have a comfortable stay at your place. Airbnb reviews give potential future guests the opportunity to know how a certain rental property is from previous Airbnb guests’ experiences. They can evaluate the short term rental based on the reviews they read. So if your Airbnb rental property has positive reviews, people will always recommend your property to others and this will boost your occupancy rate in the long run.
However, if you do end up with negative reviews for whatever reason it may be, you should take some action in order to fix the issues. When you improve your property based on the reviews, you will show your guests that their opinion matters and is taken seriously. If you want to learn more about how to get positive Airbnb reviews, read: “How to Always Get Positive Airbnb Reviews.”
3. Seasonal demand
When people think about Airbnb rentals, they usually think about summer vacation and beach locations. There are times of the year where your Airbnb occupancy rate will drop because of low demand. This doesn’t necessarily have to be during the cold winters. It can be due to many reasons. If you want the best Airbnb occupancy rate by city, look for a location that is not affected by seasonal changes. Look for a location that offers attractions both during summer and winter. Start thinking like a smart real estate investor and educate yourself on how you can make money from your Airbnb rental even during the off-season.
Read Also: How to Make Money with Airbnb During the Off-Season
How to boost your occupancy rate
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Set a reasonable price charge
Your Airbnb rental income is determined by the amount of rent you charge per night. The more you charge, the more your rental income will be. However, charging the wrong rent price can affect your Airbnb occupancy rate. Charging a price too high will leave you staring at a vacant property while charging a price too low will have you miss out on a high return on investment.
It’s best to start out with a reasonable rent charge, something below the average of properties in your area. That way you will have a better chance of attracting guests to your property than other property owners in your area do. If you want to figure out the average Airbnb nightly rate in your area, then you need to conduct a real estate market analysis. Mashvisor can help you do that with our various real estate investment tools.
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Of course, you need to keep in mind that each season has its own demand for Airbnb properties meaning that each season has its own rent charge. During the off-season, lowering your rent charge is a smart investment decision. However, during the season with high demand, you can use it to your advantage and increase your rent charge. It’s all about strategically planning everything out.
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Invest in the Right Location
This is the first point we mentioned early in our blog. Finding the right location to invest in is the most important part for any real estate investment strategy (long-term rental strategy or short-term rental strategy). Some locations are better for long-term investments and offer high cash on cash return while others are better for short-term rentals like Airbnb investment properties. The key to obtaining a high Airbnb occupancy rate is in the LOCATION! Which brings us to our main point: where is the best Airbnb occupancy rate by city in the US housing market found? Let’s find out!
Related: Best Cities for Airbnb Occupancy Rates
NOTE: All the data below was taken from Mashvisor’s rental property calculator, a tool that helps real estate investors locate the best performing cities nationwide for both rental strategies.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
Best Airbnb occupancy rate by city: San Francisco, CA: 66.14%
Top-performing neighborhoods for Airbnb occupancy rate
- North Beach, San Francisco: 76.73%
- Bernal Heights, San Francisco: 76.12%
- Outer Sunset, San Francisco: 75.9%
- Nob Hill, San Francisco: 75.7%
- South of Market, San Francisco: 70.29%
Best Airbnb occupancy rate by city: Honolulu, HI: 68.24%
Top-performing neighborhoods for Airbnb occupancy rate
- Waikiki, Honolulu: 79.32%
- McCally –Moiliili, Honolulu: 23%
- Ala Moana, Honolulu: 74.58%
- Kaimuki, Honolulu: 73.87%
- Hawaii Kai, Honolulu: 73.07%
Read Also: Where Can You Find Airbnb Properties for Sale?
Best Airbnb occupancy rate by city: Washington, DC: 51.85%
Top-performing neighborhoods for Airbnb occupancy rate
- Columbia Heights, Washington: 70.72%
- Cleveland Park, Washington: 69.26%
- Adams Morgan, Washington: 63.79%
- Brightwood Park, Washington: 63.35%
- U Street Corridor, Washington: 59.76%
Best Airbnb occupancy rate by city: San Jose, CA: 62.95%
Top-performing neighborhoods for Airbnb occupancy rate
- Willow Glen, San Jose: 74.86%
- East San Jose, San Jose: 74.6%
- Alum Rock-East Foothills, San Jose: 56.67%
- Evergreen, San Jose: 50.3%
A Final Thought
If you’ve been searching for the best Airbnb occupancy rate by city in the US housing market, then you just received a golden ticket to start what could be the best investment decision you make. Airbnb investments are a great way to generate positive cash flow and make money in real estate. Begin by using Mashvisor to find the best location for Airbnb investment properties.
