If you’re considering investing in short-term rentals in the US market, you’re probably curious about the leading source of Airbnb statistics. The dilemma of AirDNA and Mashvisor will undoubtedly come to your mind in this scenario. While both platforms have their own set of advantages and disadvantages, experienced investors must choose one to make profitable Airbnb investing decisions.
In this review, we will answer the crucial “is AirDNA accurate” question and examine how AirDNA and Mashvisor perform to help you choose the best Airbnb analytics tool for your investor needs.
The Complete AirDNA Review
As a new real estate investor, you may be unsure where to start your hunt for the ideal rental property. Although many first-time investors like to start in their local market, they may be losing out on significant opportunities because out-of-state properties usually offer lower prices and higher returns on investment.
As a result, the most advanced real estate software platform must enable investors to execute nationwide investment property searches and find short term analytics in a timely and effective way.
What Is AirDNA?
AirDNA is a data analytics solution for short-term rentals (Airbnb, VRBO). Scott and Will Shat Ford founded the company in 2015. It was designed to assist Airbnb hosts with Airbnb market data and make more accurate and calculated estimations. Previously, they concentrated on two products: Market Minder and Investment Explorer.
Now the real question is, is AirDNA accurate? Well, it appears that their primary focus has recently entirely changed to MarketMinder and Enterprise Clients. In addition, the Investment Explorer seems to have been removed from AirDNA’s main homepage. However, after analyzing their redesigned UI and website, there are numerous significant improvements.
How Much Does AirDNA Cost?
AirDNA has raised its prices and now offers three tiers on its website. Prices range from $19 to $99, with one separate enterprise solution. To start, AirDNA provides limited data for free. Yet, investors quickly learn that free data is inadequate for making informed real estate investment decisions based on good analysis.
On the other hand, Mashvisor is substantially less expensive for searching for and analyzing houses around the country. With AirDNA, you must pay to unlock each city market separately. So, if you are unsure where to invest in real estate or want to compare a few areas, the cost can be pretty high.
When it comes to AirDNA pricing, for MarketMinder, the prices range from $19 (one market with less than 100 active listings), $39 (one market with 100-1000 active listings) to $99 (one market with more than 1,000 active listings). Right now you can save 40% with the annual subscription.
Their Global Plan with unlimited access is $999 per month or $599 per month if billed annually.
Is AirDNA Accurate and How Does It Obtain Data?
AirDNA collects data from 4 million Airbnb properties, primarily by scraping the Airbnb website. A minor portion of their data is also derived from their collaborations with vacation rental operators. That enables them to re-evaluate their data to improve its correctness.
Each month, the first week of the month, they refresh their rental database. That is not an issue for most users, but keep in mind that the AirDNA data is NOT real-time. For example, AirDNA’s database is only updated 12 times per year. Whereas the bulk of new and older firms have a shorter time frame, for instance, Mashvisor.
Now let’s see is AirDNA accurate and how it compares to Mashvisor to get a clearer picture!
Mashvisor: Searching for Airbnb Properties
The Mashvisor team has created two tools for this task. The Property Finder and Search Engine. Firstly, both new and experienced investors can use the Property Finder to discover the most profitable Airbnb investment homes for sale in up to five locations at the same time. You may refine your rental property search by using several filters such as:
- Property price
- Property type
- Number of bedrooms
- Number of bathrooms
When you’ve defined your criteria, Mashvisor’s machine-learning algorithms will generate a list of available rental homes for sale that meet your exact specifications. What’s more, these homes are ranked in decreasing order of the Airbnb income property that they give, implying that the short-term rentals with the biggest rate of return will appear first. In the following step, you can view a complete report of each of these properties’ investment prospects.
Next, ambitious and beginner Airbnb hosts can use Mashvisor’s search engine to find MLS listings, foreclosures, and off-market houses in any US city. With this real estate investing tool, you have access to various filters, allowing you to narrow down your property search to a really precise point! You can create a:
- Property type
- Financing method: Cash vs. mortgage
- Minimum number of bathrooms
- Minimum number of bedrooms
- Airbnb rental income
- Airbnb cash on cash return
- Airbnb cap rate
Choosing any of the shortlisted properties according to your search parameters, similar to the Property Finder, will send you to a page with complete investment property analysis.
AirDNA: Searching for Airbnb Properties
AirDNA’s dashboard has undergone considerable alterations in the last six years. Specifically, adding new analytics and upgrading the user interface. The user interface should not be difficult to grasp for a newcomer. In reality, it was created with the mass market customer in mind. Therefore, the interface has been kept basic so that even a novice user may readily understand it.
Let’s see is AirDNA accurate and how the whole platform performs below.
The “Active Rentals” area is located in the middle of the “Overview Page.” This section summarizes Active Rentals in the region by rental type. There’s also a card that indicates the breakdown of properties listed on Airbnb, VRBO, or both.
Many interesting cards may be found in the lower area of the “Overview Page.” The “Rental Size,” “Rental Growth,” “Amenities,” and “Airbnb Ratings” cards, to be specific. If you are employing AirDNA to identify your first rental home, the most significant ones are “Rental Size” and “Rental Growth.” As their name implies, the labels allow you to examine a summary of the number of properties of a specific size in the region and quarterly growth in the area.
AirDNA Rentalizer: Is It Worth It?
The Rentalizer feature is a good tool for planning your revenue and ROI on a property. You can enter an address or zip code, as well as filters such as the number of bedrooms, bathrooms, and visitor capacities. Furthermore, Rentalizer forecasts a property’s future revenue and occupancy rate using previous data.
However, keep in mind that the AirDNA Rentalizer analyzes the investment possibilities of every property in the United States whose address you enter. Although this is a vital element of the best Airbnb analytics platform, it is insufficient to suit the needs of novice investors. Because first-time investors are unfamiliar with available homes for sale, they require all the assistance they can get searching for successful prospects.
Rental Property Analysis: Mashvisor vs. AirDNA
Is AirDNA accurate? Unlike Mashvisor, AirDNA does not enable rental property search; nevertheless, investment property analysis is provided on both Airbnb analytics platforms under consideration. Regardless, there are some significant distinctions between the two systems that we should study more.
Both the AirDNA Rentalizer and the Mashvisor investment property calculator, in general, provide a pretty similar analysis of the investment potential of short-term rental properties in the US real estate market. Both tools offer access to the anticipated:
- Airbnb income
- Airbnb daily rate
- Airbnb occupancy rate
- Airbnb cap rate
- List of startup costs that are broken down into the following categories: closing fees, repairs, and improvements, and furniture
- List of property tax, insurance, utilities, property management costs, property upkeep, cleaning fees, and HOA fees as recurrent rental charges
The presence of a mortgage calculator is a significant distinction between the AirDNA financial calculator and the Mashvisor Airbnb calculator. The first does not have a mortgage calculator, whereas the second does.
Mashvisor’s rental property calculator can generate a more complete investment property analysis because it considers the financing strategy. For example, as experienced investors understand, whether you pay for an income property in cash or with a mortgage produces quite different results in terms of ROI.
Unlike the Mashvisor software, the AirDNA Rentalizer does not estimate the cash on cash return for Airbnb rentals. That implies that by using the Mashvisor rental property calculator, you will know precisely what return you can anticipate on the money you spend on buying and renting out a home.
Comparable rental properties in the same neighborhood as your property are critical in property investment evaluation. The performance of similar Airbnbs is a good predictor of how your short-term rental property will manage.
AirDNA and Mashvisor provide a list of Airbnb rental comps for every examined property. Nonetheless, Mashvisor’s list is substantially longer and more complete. As a result, you may quickly get a list of comparable Airbnb rentals and study the data on your own to supplement the platform’s analysis.
Data Accuracy: AirDNA vs. Mashvisor
Most AirDNA and Mashvisor’s short-term rental data comes straight from the Airbnb website. That means that the research is based on actual Airbnb property performance instead of assumptions and guesses.
What is vital to distinguish is the mechanism used by each of these platforms to acquire the average numbers. For example, Mashvisor looks at the medians, whereas AirDNA focuses on the means. That makes Mashvisor’s technique far more precise, stable, and dependable because, unlike the mean, the median excludes outliers that could distort and misguide the analysis.
So, is AirDNA accurate? Mashvisor’s Airbnb data is also more accurate because it only uses confirmed Airbnb listings with three or more Airbnb ratings. That assures that the data comes from actual Airbnb hosts who have been renting out for longer, rather than individuals who tried but gave up on Airbnb.
The data available on the Mashvisor platform is more accurate and reliable than the property data on the AirDNA site. The explanation for this is that Mashvisor obtains property data directly from the MLS, but AirDNA gets it through public documents, which contain some inaccuracies.
The easiest method to ensure accuracy is to base your investment property study on remarkably similar properties.
Is AirDNA Worth It? The Final Judgment
It’s a fantastic tool that will come in handy if you’re just getting started or a seasoned user. When considering investing in a rental property, AirDNA data can be valuable in making judgments. However, AirDNA’s post-purchase features fall short of delivering correct data when managing a property. When making choices on a daily or short-term basis, AirDNA data falls a bit short relative to Mashvisor.
When AirDNA was first introduced, it was a genuinely groundbreaking tool. It put power in the hands of hosts and provided them with a means to utilize data and increase income. However, given the present market conditions, AirDNA has lagged in keeping up with some of the new and unique tools that allow hosts to do more with data.
In conclusion, is AirDNA accurate? AirDNA is a good platform; however, there are solutions on the market that provide more precise data and a lot more statistics with a lot less effort. With AirDNA, you’d have to put in a lot more effort and have a thorough understanding of your location or the area for which you’re looking for data.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.