So, there comes an important question: What kind of Airbnb occupancy rate can you expect? That is, for what proportion of the time can you reasonably expect your Airbnb rental property to be occupied each month?
Well, to answer this question, let’s look at the Mashvisor data.
Range of City Airbnb Occupancy Rate
One of the many great things which Mashvisor offers to you is an evidence-based, reliable estimate of the occupancy rate which you can expect for a particular available property as well as for entire neighborhoods in a city. Mashvisor data tells us that among the cities included in the platform, the absolute highest Airbnb occupancy rate is in Seaside, CA at 71.3%. Meanwhile, the absolute lowest Airbb occupancy rate is in Stratton, VT at 13.4%. No wonder with the climate difference between those two, right?!
But you should keep in mind that these are the extremes. The average Airbnb occupancy rate for the cities available on Mashvisor is 44.3%.
To get an even clearer picture of what Airbnb occupancy rate you should expect if you decide to go into this real estate rental strategy, let’s look at the occupancy rates for some of the most popular Airbnb destinations:
- San Diego: 66.6%
- Boston: 61.2%
- Los Angeles: 55.6%
- Dallas: 55.5%
- Houston: 49.3%
- Chicago: 46.9%
- Seattle: 40.8%
- Miami: 33.9%
Airbnb Occupancy Rate on Mashvisor
Now that we’ve looked at the range of Airbnb occupancy rate across the US, that’s still not the whole story. The Airbnb occupancy rate can differ significantly not only between cities but also between neighborhoods in the same city. For example, the Airbnb occupancy rate reaches nearly 80% in some areas of Los Angeles, while others exhibit much lower rates, resulting in a city average of 55.6%, which is quite good.
That’s where Mashvisor really comes in handy. Some basic search on Mashvisor will provide you with the average Airbnb occupancy rate for all major neighborhoods in a particular city, in addition to many other important and interesting figures such as the average cash on cash return and cap rate. Thus, once you are settled on a city for your next investment property, Mashvisor will inform your decision of which neighborhood there is likely to get you the best occupancy rate. Then, after you have decided on a neighborhood, you can look at actual properties across the US available at the moment and obtain predictive figures about the Airbnb occupancy rate for any offered property based on solid data research and analysis of other properties around. Moreover, Mashvisor will provide you with the expected Airbnb rental income (per month) as well as the estimated costs associated with owning and renting out each property which will help you understand what profits you can expect from any specific property.
Note: Click Here to find the highest Occupancy Rate properties in the US!
Related: 4 Don’ts for Airbnb Occupancy Rate
How to Raise Your Airbnb Occupancy Rate
As we said, Airbnb rental income is determined by the per night rate in addition to the occupancy rate. The more money you charge per night, the higher your monthly income. The higher your Airbnb occupancy rate, the higher your monthly income. However, raising your daily rate is risky because it might push tenants away from you. Thus, it is really important to work on increasing your Airbnb occupancy rate. Here is a list of the things you can do to that end:
1. Don’t Overprice.
At least at the beginning, don’t let yourself get tempted by quick profits. With Airbnb investment properties, it is best to start with a reasonable price, maybe even something 5-10% below the average for the same kind of property in your area. Do your homework and figure out the average Airbnb night rate for properties like yours in your neighborhood. You can use Mashvisor to do that. Then, set a price just below this average level. It is extremely important to attract guests at the very start. This will help your long-term strategy.
Meanwhile, if you’ve already had your property for a couple of years, and your Airbnb occupancy rate is not where you want it to be, try to lower your price a bit. This should attract new guests to your property. Remember that your profit is positively correlated to both your per night rate and Airbnb occupancy rate, and it is very likely that the positive effect of the rise in the occupancy rate will exceed the negative effect of the drop in the price.
2. Differentiate Between Seasons.
Most top Airbnb cities are highly seasonal, and here we don’t mean just the four astronomical seasons but also weekdays versus weekends, workdays versus holidays, etc. To increase your Airbnb occupancy rate throughout the week, the month, and the year, it is of crucial importance to ask for very different rates when there is low demand and when there is high demand. This price differentiation will help you remain competitive in low-season, while still allowing you to make your due profit during the high-season.
3. Know Your Location Well.
Following up on #2, you have to know your local market and your location. There are cities and neighborhoods which get more tourists and other visitors during the summer and such which get more demand in the winter. Business hubs are busy during the week, while vacation spots are occupied mostly on weekends. In addition, you must study well the local events – conferences, festivals, celebrations, and others – which are most popular in your city.
4. Get A LOT of Reviews.
You might be surprised to hear that quantity is more important than quality when it comes to reviews of your Airbnb investment property. But it works that way. When people consider whether to book your property for their summer vacation or business trip, it feels reassuring to see that many more have already stayed there. So, we go back to the idea above – start with low prices to attract many guests initially and to get numerous reviews. It will pay off soon by bringing your Airbnb occupancy rate up. And once you have a lot of people wanting to book your property, which means a lot of competition among customers, you can afford raising prices.
5. Get Quality Reviews.
OK, even if quality is more important than quantity with regards to Airbnb property reviews, this doesn’t mean that your reviews should be bad. People function in such a way that the small things – the details – make all the difference. So, work on the details – leave a welcome card or a small box of chocolate or some flowers or a fruit basket or just fold the towels in a nice way – to make a first positive impression on your guests. This will play a very significant role when they sit down to write a review of your property after their stay.
6. A Picture Is Worth a Thousand Words.
This old saying is so true in the Airbnb business. You are not going to attract new guests to your property and thus raise your Airbnb occupancy rate by simply writing how amazing your place is without having an attractive picture. Put the necessary efforts into taking a really good picture of your property that shows how amazing it is. This picture will do miracles for you.
Note: Want to find the highest Occupancy Rate properties in your area of choice? Click Here and start searching right away!
Airbnb investment properties are here to stay, so really – consider this option for your existing or your next income property. And make sure to work hard to get a high occupancy rate. It is not less important than charging a good price. Meanwhile, remember to check out Mashvisor for thousands of available properties throughout the US and their estimated Airbnb occupancy rate, as well as the average Airbnb occupancy rate in the neighborhood.