Starting off the New Year with plans to invest in an Airbnb rental property? Then you’re asking the right questions- Just what is the best Airbnb analytics platform? You need to know the answer to be able to carry out an accurate Airbnb investment analysis. How else will you be able to know if the property you’re eyeing will make you any money in the short-term rental market?
I can tell you that the best Airbnb analytics platform for your vacation rental business is Mashvisor. Our bold claim to the title lies in a few different unique factors, all of which come down to one key – Airbnb predictive analytics. So, if you want to learn how to invest in Airbnb, keep reading to find out how this Airbnb analytics platform can help.
Airbnb Predictive Analytics – What Is It? Why Do Airbnb Investors Need It?
Predictive analytics for vacation home rentals involves gathering Airbnb big data and analyzing and interpreting it. The job of an Airbnb analytics platform like Mashvisor is to present this info in an easy-to-understand format for the real estate investor.
With Airbnb predictive analytics, the world of vacation rental investing is opened up to the investor. That’s because you’ll be able to find the best places to buy a vacation home to rent out and the best Airbnb properties for sale in that housing market!
This is crucial given all of the new short-term rental regulations being passed across the US. What this means is that even though your choices for places to invest in Airbnb may be limited, you can still easily find the best one using an Airbnb analytics platform.
Learn More: Airbnb Rental Data: Why Investors Need It Now More Than Ever
To get a complete picture of Airbnb predictive analytics, let’s take a look at 8 different things Mashvisor provides for its real estate investors.
Best Places to Buy Airbnb Property
Looking for the best cities for an Airbnb investment? Well, using data provided by a trusted Airbnb analytics platform will make sure you choose the most profitable locations.
Where can you find this information on Mashvisor? On our blog! There, we share the latest Airbnb data analysis of major cities. That way, you’ll always know the next best place to buy a vacation rental property!
Check out “8 Best Cities for Airbnb Investment” to find out which cities in the US housing market will have the highest return on investment (ROI) for short-term rentals this year. (Not to mention Airbnb is legal in all 8 cities!)
Best Neighborhoods to Invest in Airbnb Rentals
Next, you can use Airbnb data analytics in order to find the best neighborhood to invest in Airbnb property. This is even more important than narrowing down the city. Why? Because every neighborhood’s investment potential differs within the same city.
One neighborhood may be one of the most popular Airbnb locations while another never sees a single tourist during the year. And while it’s a good idea to dig a little deeper and research tourist stats on neighborhoods, this info can be hard to find.
Instead, Airbnb rental data can reveal everything you need to know. If investment properties have done well in that area in the past, Airbnb predictive analytics will reveal how well they’ll do for a future purchase as well. You won’t be steered wrong!
Mashvisor’s Airbnb Heatmap Analysis Tool is what you want to use here. This is what the real estate investment tool likes look:
As an Airbnb investor (future or current), you’ll notice the filters that are the most useful for you with the Heatmap:
- Listing Price– because you want an Airbnb investment property that you can afford
- Airbnb Rental Income– this is where your return on investment will come from
- Airbnb Cash on Cash Return– this is one of the best metrics for measuring ROI
- Airbnb Occupancy Rate– without tenants to occupy your vacation home, what good is it?
If you play around with these different real estate market filters, you’ll find the most profitable Airbnb location in the city of your choice! One with an affordable listing price, high Airbnb rental income, a good ROI, and lots of tenants. That’s the power of the best Airbnb analytics platform.
Try Out the Airbnb Heatmap Here
Find Out More: Heatmap Analysis: The Secret to Successful Real Estate Investing
Now you have a great location for starting an Airbnb business. Next, our Airbnb analytics platform will help you find the best investment properties for sale to use with this rental strategy. This requires an investment property analysis involving the following elements.
Costs of Owning an Airbnb Rental
Owning a vacation rental property can be quite expensive. There are plenty of rental expenses to consider from tenant turnover to property management fees to insurance and taxes. The worst thing that can happen is if you buy an Airbnb property only to end up with negative cash flow. That’s when the rental expenses outweigh the Airbnb rental income.
Thanks to Airbnb predictive analytics and Mashvisor’s Profit Calculator, you can view quick estimates for any listing on the platform. The cost estimates are typically averages of the area. And once you narrow down a few investment properties for sale, you can start digging into each property to find more accurate cost estimates- from previous owners, real estate investment agents, or the property seller.
Once you have your own estimates, the interactive Airbnb Profit Calculator allows you to enter in your costs- both one-time startup and reoccurring. You’ll get to see how they affect your return on investment and if you still end up with positive cash flow.
Airbnb Rental Income
Of course, to complete the calculation of cash flow, you need to know how much Airbnb rental income you can make. The best Airbnb analytics platform finds rental comps for you and figures out the expected rental income.
The cash flow is displayed, along with the rental income and total expenses for a complete Airbnb investment analysis.
Related: The Best Ways to Increase Airbnb Rental Income
Airbnb Occupancy Rate
What kind of occupancy rate can you expect for your vacation home rental? Using Airbnb predictive analytics, you can get this information easily. Every investment property on the platform has the Airbnb occupancy rate listed. It’s taken into account in all of the ROI metrics (like rental income) for the most reliable rental data.
Airbnb Cash on Cash Return and Cap Rate
Here’s the most unique investment property information our Airbnb analytics platform provides. It’s also the most important to a real estate investor. That’s the ROI metrics of cash on cash return and cap rate.
Airbnb cash on cash return is the amount of cash flow a rental property produces in ratio to the total cash investment. The latter includes everything from the down payment, to closing costs, to any renovation costs you might find are needed in a later home inspection.
In combination with the mortgage calculator on the Airbnb analytics platform, you’ll get a good idea of what kind of CoC return you’ll get based on the down payment, loan type, and interest rate info you enter in the calculator.
Airbnb cap rate is the amount of cash flow in ratio to the purchase price of the property. So this metric doesn’t take into account your method of investment property financing.
As you can see, both essentially tell you how profitable a real estate investment will be and how quickly if you look at the annual ROI. Using different forms of real estate market data and Airbnb predictive analytics, Mashvisor provides the most reliable cash on cash return and cap rate values for every property and neighborhood.
This also helps you to be sure that you’re choosing an investment property with which Airbnb is the optimal rental strategy. How? Well, every property will display all of the previously mentioned figures (rental income, cash on cash return, cap rate, and occupancy rate) for both a long-term and Airbnb rental strategy for the same property.
Try the Airbnb Profit Calculator Here.
Rental Comps for an Airbnb Investment Property
The best Airbnb analytics platform wouldn’t be the best if it couldn’t also perform real estate market analysis. Making money with Airbnb requires that you avoid a bad real estate deal and an overpriced property. Finding real estate comps takes a lot of time and effort and doing it manually can lead to mistakes. Mashvisor provides them automatically for every listing on the platform.
Rental comps are also crucial to your Airbnb business because they help you set a competitive rental rate. You can learn more about how to use an Airbnb analytics platform to set your nightly rate by reading How Much Should I Charge for Rent?
How Many Airbnb Reviews Does It Take to Raise Your Occupancy Rate?
Ever wonder how many positive Airbnb guest reviews you need to increase your occupancy rate? This is another thing that is possible with Airbnb predictive analytics. For many properties on the analytics platform, you get to see how many reviews you need and just how much the occupancy rate will increase. This is a big help when dealing with reviews as a property manager.
So, Is Mashvisor the Best Airbnb Analytics Platform?
The only way to really know is to try the platform. Click Here to Start Your 7-Day Free Trial Now and decide for yourself.