For analyzing short-term rental properties, you need reliable tools.
Simply using a search engine tool like Google will not help you much, and it certainly won’t provide you with the information you need.
With that said, today’s topic is to compare the two calculators, their accuracy, and what they offer you. The situation is as follows:
AirDNA calculator vs. Mashvisor Airbnb Rental Calculator — which one does a better job?
To get an answer regarding which one’s more efficient for your investment strategy — AirDNA Calculator or Mashvisor Airbnb Rental Calculator — we must consider a couple of factors first.
Stay tuned for the verdict!
Why Do You Need AirDNA?
Before you rent out any property, you should know at least the numbers you’ll be dealing with in the process. It’s beneficial to your Airbnb return on investment to know the odds.
That is simply done by analyzing dozens of different properties online — all according to your criteria. More precisely, you should look at the price for the night, check in what condition the property is currently in, and how much of its calendar is booked.
In essence, you will need AirDNA to provide you with accurate data on the property you’re interested in here.
How Much Does AirDNA Rentalizer Cost?
AirDNA calculator is a subscription-based tool, and its cost depends on the number of active listings.
For example, if you’re interested in an area with 1,000 active listings (or more), it would cost you around $99.95 a month. Even if you decide to go with an area that has between 100 and 1,000 listings, the cost of the subscription will not change — and you’ll still be paying $99.95 a month.
Lastly, if you’re interested in a much smaller market and one with less than 100 listings, your subscription will be only $19.95 a month.
What Are the Metrics?
In addition to the standard information on how many rooms and bathrooms the property has, AirDNA Rentalizer offers you the following metrics that could tell you a little more about that location:
- Average Daily Rate
- RevPAR
- Occupancy
- Active Listing
- Rental Revenue
- Booking Lead Times
Each location is different, meaning the AirDNA market data for seasonality, rental growth, or amenities might vary during the seasons.
Who Are the People That Use This?
We said something about the critical aspects of the AirDNA Calculator and how to analyze a short-term rental — but one question remains:
Who are the users?
There are, generally speaking, two groups of people that use this tool:
- The first group of people is the ones that are already hosting and are merely looking to compare their Airbnb income to other hosts in their area.
- The second group includes investors who use the AirDNA rental analysis to make a smarter real estate investment.
Can You Stay Long-Term?
Although this calculator is solely based on short-term rentals, some hosts will still let you stay long-term. They might even throw in a discount — depending on your stay.
That may not be clear to you immediately after using the AirDNA calculator, but any stay that exceeds 28 days requires paying upfront each month. So, if you wish to cancel, you’ll still be billed for the length of your stay.
Why are we mentioning this?
So that you know that there’s a possibility to prolong your stay, even when relying on Airbnb.
The Pros And Cons Of Airbnb
No more stalling; let’s cut right to the point.
It is time to highlight the advantages and disadvantages of using an AirDNA calculator to analyze short-term rentals.
Potential Income
First on the list of advantages, and certainly one of the major ones, is that the host can freely determine its price for short-term rental. Basically, if you’re the owner, you have the power to adjust your pricing to the peak period in which you have the most potential guests.
Within this tool, there’s the “Smart Pricing” feature that will help you when it comes to putting the price on the property.
For some, this is merely a way to earn some extra cash. However, for others, being a host is a full-time job that requires constant dedication and checking the AirDNA calculator.
Easy to Manage
Using an AirDNA calculator is easy, and it doesn’t require you to hire someone to keep track of the information and updates. Know that the system does most of it for you, and it’s easy to manage.
The second advantage is communication between guests and hosts. It’s simplified, which again makes keeping track of information very easy. The info you need isn’t cluttered — and you can organize your platform pretty quickly.
The more effort you put into optimizing content and listings and keeping your prices up to date, the easier it will be for you to cope.
Unforeseen Circumstances
No matter how easy it is to use, there are certain circumstances that you cannot predict. The thing is, you bear the problems of clogged toilets, broken appliances, dissatisfied guests — all that.
Unfortunately, the AirDNA calculator can’t predict things like this, so you have to be prepared to deal with the consequences.
The good thing is that you have a backup plan that may get you out of these troubles without spending too much money.
Not Always Legal
You have to keep in mind that every business you do must be in accordance with the law; no exceptions there.
Whether you use AirDNA alternatives as an additional or your primary business, you need to be familiar with the rules of the game.
The US is a vast country, and the laws are not the same in every state. In some of them, you might not be able to list properties until you obtain some kind of license.
With an AirDNA calculator, you’ll still be able to check the metrics that we’ve mentioned — but this can cause legal problems for both potential investors and guests arriving.
Now, it’s time to move on to our second option — and one of our own:
Mashvisor Airbnb Rental Calculator.
How Mashvisor’s Rental Calculator Differs?
Mashvisor’s Rental Property Calculator is the tool that aims to assist potential real estate investors in comparing the numbers that are key to their decision.
Precisely, we’re talking about:
- Expected rental income
- Expenses
- Potential profit from a specific area
Some essential metrics available within Mashvisor’s Rental Calculator include:
Cash Flow
Cash flow might be the most important one on the list right now.
By definition, cash flow is the difference between your property’s monthly rental income and the monthly expenses. It goes without saying that, as potential investors, you want to invest in a profitable property that will result in a positive cash flow.
And just as the positive cash flow brings profit to the investor, negative cash flow means that your expenses exceed gains — and your chances are not looking good.
If you’re considering using Mashvisors’ calculator, you won’t have to worry about inaccurate information. Our tool ensures that all numbers and Airbnb data analytics are compared and accurate.
Capitalization Rate
Another on the list of priorities would be the capitalization rate, or the cap rate. In essence, the capitalization rate represents the ratio of net operating income or NOI.
To make this clearer for future real estate investors, let’s use this as an example:
Suppose the NOI of the property you’re renting out is $20,000, and its value is $200,000. In that case, your capitalization rate will be 20%.
As investors, you’re advised to invest in a property with a higher capitalization rate than 10% if you want to achieve a good Airbnb return on investment.
With Mashvisor, you don’t have to dwell on the capitalization rate and live in uncertainty. We have thousands of capitalization rates calculated and ready for you to evaluate and choose the right one.
Cash-on-Cash Return
Finally, we have cash-on-cash return — an indispensable part of a successful calculator.
Primarily, this adds to the last factor we’ve mentioned — the NOI. It helps investors see the potential profit. And simply put, the higher the CoC return, the better.
On the statistical side, if the CoC is higher than 8%, that makes the property “fruitful” for an investment. It essentially means that paying in cash or taking out a mortgage is worthwhile.
Here at Mashvisor, our tool provides investors with accurate numbers on CoC returns so that they can be sure they’ve made the right choice.
The Core of Mashvisor’s Data
The data that is presented come from median prices shown on real Airbnb platforms so that you can get a precise estimate on the following:
- Occupancy rate
- Mortgage details (selling prices, down payments, loan terms, etc.)
- Initial costs
- Monthly running expenses
Mind you, these are just some of the estimates you can look into with Mashvisor’s tool.
You can also add your custom costs. The calculator will then use the data and evaluate them according to the factors we have mentioned above — cash-on-cash return, capitalization rate, and rental income.
Where Does the Data Come From?
It’s imperative to note that the data we employ on the Mashvisor platform and during the use of the calculator is 100% accurate and comes from actual Airbnb platforms.
The data presented is based on objective performance from current and available short-term rentals all around the US.
More importantly, Mashvisor keeps up with all the changes and trends, so you’ll always have the updated version.
What Types of Analytics Can You Get?
In terms of Airbnb data analytics, the information that investors are presented with includes the following:
- Property Details: Street address, number of bedrooms, selling price, property type, lot size, year in which it was built, tax history, etc.
- Rental Income: As we’ve already mentioned, Mashvisor’s calculator estimates the property’s rental income by considering the occupancy rate as one of the metrics.
- Airbnb Costs: Since it is a short-term rental, you will undoubtedly encounter certain fees that will later be deducted from your gross income. Well, Mashvisor’s calculator will readily give you an estimate on those start-up costs.
- 10-Year Investment Payback Time: Another great feature of Mashvisor’s calculator becomes visible when you scroll down; there’s a helpful 10-year investment balance table. It summarizes the property’s metrics and provides the investor with a detailed breakdown of expenses and income.
That’s an easy way to visualize your investment and pitch ideas to your partner — or if it’s just you, have a better insight into the numbers.
What Makes Mashvisor Exceptional?
We have gone through many features that make it obvious why Mashvisor should be your #1 choice — but we’re not quite done yet.
There are a couple more you should know about before we wrap things up.
One of Mashvisor’s most popular features is Neighborhood Analysis. Unlike many other AirDNA alternatives, our tool gives potential real estate investors the opportunity to compare hundreds of neighborhoods around the US — and interpret investment success.
Optimal Rental Strategy is another feature that makes it easier for potential investors to decide on the strategy for their investment property. The calculator works around traditional and Airbnb data alike.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Final Thoughts
We’ve successfully managed to compare the AirDNA calculator to Mashvisor’s Airbnb Rental Calculator — and now, it’s time to look back at some crucial points we’ve mentioned so far.
In all truth, both options are undoubtedly helpful for potential real estate investors and hosts because they’ll provide the user with an abundance of info on the property, possible income, expenses, and so on.
However, we’ve come to realize that Mashvisor’s calculator has performed better in certain aspects by providing additional features — including the Neighborhood Analysis and 10-year investment payback.
That makes it easier for the real estate investor to make a decision faster and helps visualize the investment strategy.
Most importantly, with Mashvisor’s tool, you won’t have to worry about getting outdated and inaccurate information.
Everything you need is in one place — and it’s up to you to join us and put your investment plan into action! Click here to sign up for Mashvisor today.