The short-term rental market in the US has become a desirable investment option, and many people are considering jumping on board. If you’re a complete novice, there are many tools to help you make the right decisions. However, even if you’re an experienced short-term rental investor, the very same tools can point you in the right direction and help you calculate your Airbnb return on investment and projected Airbnb income.
There is, however, one thing that can be very challenging, and that’s choosing the right tools to use. In this post, we’re going to look at a couple of very popular sources of Airbnb data: Mashvisor vs AirDna. Both platforms offer unique pros and cons, but there’s little sense in using both, so which is the best Airbnb analyzer?
Searching for the Best Rental Property
At the beginning of your Airbnb journey, the first decision you have to make relates to your investment property. You need to find the best rental property, but where should you start your search?
The most obvious place to start for many real estate investors is in their own backyard. However, if this is the only place you’re looking, you could be missing some major opportunities. It’s often the case that properties out of state are more affordable. In addition, they may well offer a higher return on investment.
Luckily, there is a software you can use that allows you to conduct a property search nationwide. There are two top-rated options, but which one to choose. Let’s compare Mashvisor vs. AirDNA and see which is more suitable.
The team at Mashvisor has developed two tools that help you search for properties in an efficient manner.
Mashvisor Property Finder
The Mashvisor Property Finder suits the needs of both beginners as well as experienced investors. It’s also a popular tool for real estate agents and brokers.
You can use it to search for profitable Airbnb investment properties in as many as five cities at the same time. This property search saves you lots of time searching for properties in individual cities and allows you to quickly identify the city with the best properties matching your investment goals.
You can use a range of different criteria to narrow down your Airbnb income property search. The filter options include:
- Price of the property
- Type of property
- Number of bedrooms
- Number of bathrooms
Once you’ve set your criteria, the Mashvisor algorithms go to work and provide you with a list of available rental properties for sale that match your requirements.
In addition, the properties are listed in decreasing order of the Airbnb cash on cash return which they offer. This means at the top of the search results, you’ll find the short-term rentals that have the potential to bring you the highest rate of return.
The next step for you is to access the detailed Airbnb data analysis of the investment potential of each of the properties. This information will help you make your decision.
Mashvisor Property Marketplace
Another essential tool when it comes to comparing Mashvisor vs. AirDNA is Mashvisor’s Property Marketplace. It allows you to search for MLS listings, off-market properties, and foreclosures in cities across the USA.
The Mashvisor Property Marketplace is an excellent real estate investment tool that gives you a range of filter options. Having the opportunity to look for properties that match your criteria means your property search can be really precise. You can set up the following filters:
- City
- Neighborhood
- Type of property
- Method of financing, whether it’s cash or mortgage
- Minimum number of bedrooms
- Minimum number of bathrooms
- Airbnb rental income
- Airbnb cash on cash return
- Airbnb cap rate
The process is similar to the property finder. Once you’ve entered your criteria, the platform presents you with a list. You can then access more information and comprehensive investment property analysis from the shortlist of properties.
Can AirDNA Help you Search for Property Rentals?
Does AirDNA offer the same? Unfortunately, there is nothing similar if you’re looking for lucrative short-term rental properties. Instead, there is an AirDNA rentalizer.
What you can do with this tool is analyze the investment potential of any property in the US. However, to access the AirDNA rental analysis, you first have to enter an address. This is an important feature, but when it comes to comparing Mashvisor vs. AirDNA, the tool falls short if you’re not sure what you’re looking for.
This is especially important for beginner investors who aren’t yet familiar with what properties are available. Even more, experienced investors might be looking to invest somewhere new. Both types of investors need additional help in searching for profitable opportunities in the first place.
Rental Property Analysis
AirDNA might not offer the same, but investment property analysis is available with both Mashvisor and AirDNA. Both Mashvisor and AirDNA market data gives you the following information:
- Airbnb income
- Airbnb daily rate
- Airbnb occupancy rate
- Airbnb cap rate
- A breakdown of startup costs which might include closing costs, repairs, improvements, and furniture
- A breakdown of recurring rental expenses such as property tax, insurance, utilities, property maintenance, property management fees, cleaning fees, and HOA fees.
That being said, there are some differences you should be aware of.
Mortgage Calculator
Both Mashvisor and AirDNA provide access to financial calculators, but when you compare Mashvisor vs. AirDNA, the former features a mortgage calculator, while the latter doesn’t. For the investor, this is a significant difference.
Mashvisor’s rental property calculator produces a more detailed investment property analysis as it takes into account the financing method. As any savvy investor will know, how you pay for your income property impacts the return on investment quite significantly.
There are no estimates for the cash on cash return for Airbnb properties with the AirDNA rentalizer. However, with the Mashvisor rental property calculator, you know exactly what return you can expect on the cash you spend purchasing the property and renting it out.
Rental Comparison
A critical part of investment property analysis is being able to compare rental properties in the same area. For example, you can get a good indication of how your short-term rental property will do by comparing similar Airbnb property performance.
Both AirDNA and Mashvisor offer comparison lists for each analyzed property. However, Mashvisor’s list is more comprehensive and longer. You can download this list of comparable Airbnb listings, analyze the data as you see fit, and augment other analyses available on the Mashvisor platform.
Airbnb Data Analytics
Whichever analytics platform you use, it’s only ever as good as the data. How the data is collected and analyzed is critical. The accuracy of the information is equally relevant. For example, Mashvisor and AirDNA obtain most of their short-term rental data directly from the Airbnb.com platform. This means that you can be sure it is based on the performance of actual Airbnb properties, as opposed to approximations and guesswork.
However, the accuracy of the data both platforms use is different.
Accuracy of the Data: Mashvisor vs. AirDNA
The devil is in the detail when it comes to data and analysis. What differentiates Mashvisor from AirDNA is the method each platform uses to obtain the average values.
AirDNA uses mean values, while Mashvisor uses the medians. Does that really make a difference? Actually, yes, it does. Mashvisor’s approach is more robust, reliable, and accurate because it doesn’t take into account outliers which might misinform and skew the analysis.
But that’s not all. Another reason for the higher degree of accuracy is that Mashvisor only uses data from Airbnb listings with three or more Airbnb reviews. What this means is that the data is from actual Airbnb hosts who have been renting out their property for a time. Rather than homeowners who gave Airbnb a try but quickly gave up.
Finally, the property data on the Mashvisor platform exhibits a greater degree of reliability and accuracy than the data on the AirDNA website. This reliability and accuracy make Mashvisor tools more than just AirDNA alternatives.
The data is more accurate because it pulls directly from the MLS (Multiple Listing Services). What is the MLS? It’s a database established by cooperating real estate brokers to provide data about properties for sale.
An MLS allows brokers to see one another’s listing of properties for sale. The ultimate goal of this service is to connect home buyers to sellers. Under this arrangement, both the listing and selling brokers benefit by consolidating and sharing information and by sharing commissions.
Multiple listing services create a book or an electronic database with all of the houses for sale by affiliated brokers, who update it on a regular basis.
AirDNA, on the other hand, uses the information it’s gathered from public records. The problem with these records is that they often feature a certain degree of error. The best way to ensure accuracy is to base your property investment analysis on very similar properties.
Rental Strategies
Both AirDNA and Mashvisor provide helpful information for investors who want to analyze income properties to be rented out on a short-term basis through Airbnb. However, Mashvisor takes this analysis one step further. It also provides data for investors who are considering renting out a property on a long-term basis, such as a traditional rental.
Being able to analyze both rental strategies is a significant advantage for anyone looking for an analytics platform. Even if your immediate focus is short-term rental and an Airbnb income property, it’s also advantageous if you’ve got the option to explore other rental strategies as well.
Why you might want to explore other rental strategies
There’s no denying that Airbnb rental properties generate a higher return on investment, on average. However, it’s not all plain sailing. Airbnb properties also face restrictions and stricter regulations. In many US markets, short-term rentals have been limited and, in some cases, prohibited altogether.
A number of other markets are also considering joining this trend. The property you purchase might be in a location where Airbnb is legal right now. But who knows what might be around the corner. You may be forced to change your rental strategy to stay on the right side of the law.
Another reason you might be reconsidering the Airbnb rental industry is that being an Airbnb host requires a lot of hard work. Yes, there’s always the option of hiring an Airbnb management company to take care of things, but this comes at a cost and ultimately reduces your rental income.
A few months or years down the line, you might have had enough of being an Airbnb host and want to consider whether you’re better becoming a traditional landlord instead.
Savvy real estate investors should always keep their options open and be prepared to switch strategies if circumstances dictate a change.
How Much Does it All Cost?
One final thing to consider is the cost of all this Airbnb data.
AirDNA offers a limited amount of data for free. However, you’ll quickly realize that the free data is not sufficient for making educated real estate investment decisions based on solid analysis.
In this Mashvisor vs. AirDNA review, we’ve already looked at the advantages in terms of data. But Mashvisor also excels when it comes to price. So if you’re looking for and analyzing properties nationwide, Mashvisor is a far more affordable option.
Another downside with AirDNA pricing is that you pay to unlock individual city markets. So, potentially, you could end up paying a lot of money if you’re not sure where you want to invest.
Final Thoughts
Now you appreciate the advantages and disadvantages of both platforms, you’re in a better position to make an informed decision and the best one for your needs.
If you like the sound of the Mashvisor platform, you’ll be pleased to learn that a free trial is available. Try the Mashvisor platform for free before you make a financial commitment. After that, you should have everything you need to start making money from Airbnb. To learn about your options for signing up for our services, click here.
