Learn how to use Mashvisor to buy the most lucrative investment properties. In this category of our Investor Blogs, you will find all the tools and resources which Mashvisor gives to first-time real estate investors as well as experienced ones. Learn how to use our Heatmap, Property Finder, and Investment Property Calculator in order to figure out the best places for investing in real estate in the US housing market and to find the properties with the highest return on investment which fit your budget and other search criteria in a time- and cost-efficient manner. Once you find a property, choose between a traditional and Airbnb rental strategy for maximum rental income, occupancy rate, cash flow, cap rate, cash on cash return, and appreciation in your location of choice. Our Mashvisor tools resources are your one-stop shop for finding money-making traditional and Airbnb rental properties in a matter of minutes.
Finding the right investment property can be complicated. It is why different platforms provide an Airbnb income calculator for investors.
Short term vacation rental properties are one of the most successful investments. In this article, we will discuss what Airbnb is and how to make a successful investment in the vacation rental market. Then, we will discuss the best Airbnb rental income calculators available to investors.
What Is Airbnb?
The term Airbnb refers to a short term vacation rental property. The properties are usually a type of residential property, such as traditional homes, condominiums, or apartments, that their owners rent out to travelers. Though the said property types are the most common, Airbnb can be as majestic as a mansion or as simple as a spare room in your home.
Typically, Airbnbs are rented out to travelers looking for a place to stay for a short period of time. They are usually owned by investors with multiple travel properties or individuals looking to make some extra money. Investors with an Airbnb business may even own several properties in the same city.
Airbnbs are a popular type of accommodation for travelers as, depending on the type of property, they can sleep more people. So, if you’re traveling in larger groups or going with a bigger family, Airbnb may be the best option to keep everyone together for your stay.
People commonly use Airbnb.com as their main way to find short term vacation properties. The website allows people to list their property themselves, and people book their location straight through the site.
Pros and Cons of Investing in an Airbnb Rental Property
Along with any real estate investment, there are different benefits and drawbacks you should consider. Below, we will take a look at some of the biggest pros and cons of investing in an Airbnb rental property.
Pros
Here are the benefits of Airbnb rental property investments:
1. A High Income Potential
The main reason many people consider investing in a short term rental property is the potential income they can generate. An Airbnb in the right location can bring substantial profit for investors. However, there is some research that must be done before deciding on a property.
Additionally, as an Airbnb owner, you can set your own prices for guests who wish to rent your property. It means that during peak seasons, you are able to raise the price as much as you want and change it back when you please. It helps ensure your property is rented and you are making money in real estate.
There are even tools available to help adjust your pricing based on the season. The smart pricing tools evaluate other Airbnbs in the area and compare them to yours. Then, it can suggest a price that is guaranteed to get your location rented. Many smart pricing tools can be found in Airbnb income calculator tools, as well.
2. Easy to Manage by Yourself
Owning and operating an Airbnb is fairly easy to manage on your own. To start, most of the time, you are your own boss, so you can do as you please with the property. Other times, people hire a property manager to oversee their Airbnb business. Even with a manager, you are their boss and have the final say on any decision.
It is also likely you will be using some kind of website when listing and renting your Airbnb. The sites offer easy communication between the host and the guests, as well as solutions to any potential problem. Overall, managing an Airbnb by yourself can be quite simple if you are using the right resources.
3. Can Help Get Your Foot in the Door for Other Opportunities
Real estate investing can be a tricky profession. One good way to start your investment journey and see if it is the profession for you is to invest in Airbnb to start. Short term vacation properties are pretty low maintenance and easy to invest in. There are several websites that guide users through the entire process.
If you find you enjoy vacation properties, then you can purchase more and own an entire group of Airbnbs across multiple cities in the US. You can invest in as many as you can afford; there are no limits.
After you have experienced short term rentals, you may decide to move on to a larger project like a traditional rental or even a fix and flip property. Airbnbs are a great way to get some experience in real estate investing before committing to the profession full-time.
4. Protection Insurance
Often, people are scared to invest in real estate as they think tenants may damage their property, and then they wouldn’t be able to afford to fix it. There is no need to be anxious, though. Most websites on which you list your vacation rental, such as Airbnb.com, offer damage protection insurance programs.
The programs offer up to a certain amount of money to cover any damages that the renters might have done. It should be noted that such programs don’t cover every type of damage, but primarily ones done on purpose by renters looking to cause harm to your property. With such programs in mind, you can list your Airbnb worry-free and focus on collecting income.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Cons
Along with the benefits, below are some of the drawbacks of investing in an Airbnb rental property.
1. Hosting Can Be Complicated
If you are managing your own Airbnb properties, sometimes it can get complicated. You would be responsible for talking to guests and confirming reservations. You must also handle any problems that come up on the property during a stay and be available to fix the issues immediately. If you are not able to be available 24/7, you may want to consider hiring a property manager.
In addition to being available at all times for your guests, you are also responsible for maintaining the property between each stay. It means making sure it is clean and stocked for the next stay. If you fail to do so, it is possible guests will leave bad reviews. It can make your Airbnb lose money as potential renters will read the reviews and not want to book your property.
You can still invest in vacation rentals if you are not available 24/7. It can be done by hiring others to perform these tasks. A property manager can oversee the location and handle all of the tasks mentioned above. Additionally, you can hire cleaning services to clean the property between stays.
If you choose to hire outside help, be sure to keep it in mind as it will impact your Airbnb cash flow, as you will need to pay for such services.
2. There Is a Potential Risk
Though there are different types of insurance or protection programs you can get for your Airbnb property, they don’t always cover every circumstance that can occur. You can never know for sure that guests have the best intentions for your property.
Additionally, unexpected problems can happen when guests are staying on the property. It can be a random accident caused by the weather or a person not involved in the Airbnb. If such unexpected accidents happen, you will be responsible for not only fixing the problem but ensuring your guests are fine after the issue occurred. There is no guarantee that your Airbnb will always run smoothly.
3. Airbnb’s Are Not Always Legal in Every City
Though your desired city may approve traditional rental properties, it doesn’t always mean Airbnbs are also allowed. Each city (or state) imposes its own laws regarding owning and operating a short term rental. Always make sure to check with the local city government to ensure you can operate an Airbnb.
Even if short term rentals are legal in your location, it is likely you will need to obtain multiple registrations and licenses in order to run your business. They can be both city and state requirements. It is important you always do your research as to what licenses you need to obtain to operate an Airbnb.
Why Use an Airbnb Income Calculator
When finding your perfect short term rental property, you want to ensure you are making the right investment. The best way to do it is to rely on the data. Using an Airbnb income calculator is an excellent way to keep track of all of the data and make sure it is accurate. An Airbnb income potential calculator not only provides you with estimated Airbnb data and costs but helps you see how profitable that investment can be.
Airbnb demand is always growing, and an Airbnb income calculator is the best resource to keep track of the changing markets and how your property will perform.
What Data You Will Get on Mashvisor’s Airbnb Income Calculator
The best Airbnb calculator available to investors is Mashvisor. It is also referred to as our Investment Property Calculator. The tool makes finding a successful short term vacation property easy. We use up-to-date housing market information and reliable data from sources like Airbnb.com and the MLS to conduct our Airbnb analysis. It ensures we are providing our users with the most accurate information.
Below are some of the data you will get on your Airbnb property when using Mashvisor’s Airbnb income calculator:
- Monthly Airbnb rental income
- One-time expenses
- Monthly expenses
- Cash flow
- Cash on cash return
- Airbnb cap rate
- Occupancy rate
- Rental comps and neighborhood insights
Mashvisor provides an Airbnb income calculator that allows investors to calculate potential rental income based on several metrics.
How Mashvisor’s Airbnb Income Calculator Works
Our Airbnb host income calculator is very easy to use. We let our investors use their own numbers on their property to make the pre-calculated data as accurate as can be. To use the tool, you simply enter the relevant information on your Airbnb property and let our calculator do the rest.
To start, we offer you pre-calculated real estate costs for your Airbnb. They can include property taxes, interest rates, and possible maintenance and repair costs. It makes it easy to formulate a budget for your vacation rental property and generate a profit.
Then, we offer a comprehensive rental strategy comparison. Basically, it compares the data on your specific Airbnb property between how it would perform as a traditional rental vs an Airbnb vacation rental. We do so by comparing the necessary data such as cap rate, cash on cash return, and monthly income. It helps ensure you are making the best rental strategy for your property.
Overall, Mashvisor’s Airbnb income calculator saves investors time with complicated real estate data and lets you make money in real estate as quickly as possible. Start looking for profitable investment properties in your preferred location here.
Recap
Short term vacation rentals are always a growing industry in the US housing market. Investors can make quick and generally easy money with Airbnb properties. The hardest thing about vacation rentals is finding a property in a location that will be profitable. Whether you want to purchase the location yourself or resort to an Airbnb arbitrage, it is tricky to find a property.
Finding reliable sources to run Airbnb comps can be complicated. You want to make sure to choose a site that is trustworthy, reliable, and up-to-date with the current housing market trends. It is why we recommend Mashvisor’s Airbnb income calculator for your vacation rentals.
Our Airbnb income calculator is easy to use and offers you accurate information. We not only offer estimated costs but a comparison between properties and rental strategies to show you how successful your location will be. You can trust you are making the best decision in your real estate investment using our Airbnb calculator.
To access our real estate investment tools, click here to sign up for Mashvisor today.