If you’re into real estate investing, maybe you’ve wondered about a good rental calculator. We’re going to focus on Mashvisor vs AirDNA here.
Many see the US short term rental market as a desirable investment option, and more real estate investors are considering jumping on board.
Table of Contents
- Three Rental Property Investment Trends to Watch
- AirDNA vs Mashvisor: Is Mashvisor Better Than AirDNA?
- Analyzing Rental Property
- Exploring Rental Strategies
- Mashvisor vs AirDNA: How Much Does it All Cost?
- Frequently Asked Questions
Moreover, the coming year will provide numerous appealing investment opportunities. As long as investors assess the market, use reliable information, and keep up with recent changes and predictions, they can expect favorable returns.
If you’re a complete novice, there are many tools to help you make the right decision. However, even if you’re an experienced short term rental investor, the same tools can point you in the right direction and help you calculate your short term rental ROI and projected 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?
However, let’s start first with some crucial real estate statistics you should know.
Three Rental Property Investment Trends to Watch
The previous few years brought about a series of problems in the real estate industry, particularly in rental property. The pandemic, the hottest real estate housing market in years, and the spike in interest rates on mortgages all significantly impacted the sector. They also affected how investors behave and think.
With that in consideration, let’s explore the three most essential trends.
1. The Short Term Rental Sector Is Recovering
Even though the pandemic adversely affected the vacation rental industry, the downturn was brief. We are now seeing a gradual recovery in the market.
The improvement is predicted to continue throughout the rest of 2022. When compared to long term rentals, short term rentals are predicted to regain their status as the more successful rental strategy.
The return to traveling is the most positive indicator. Moreover, monthly travel expenses in the US reached the pre-pandemic figure (April 2019) for the very first time, by about 3%, in April 2022.
Tourism is directly tied to short term rentals. As more people continue traveling, the need for short term rental properties will rise, allowing for greater daily prices and a bigger return on investment.
2. Long Term Rentals Are Gaining Popularity
Other significant development created by the global pandemic is the rise of a mixed rental strategy that incorporates the benefits of investing in both short term and long term rentals.
As professionals required temporary lodging in different areas, the number of long term Airbnb rentals, often known as furnished apartments, increased.
From an investor’s standpoint, the said rental approach offers better rental income than regular rental properties. Moreover, it provides greater predictability and consistency in terms of occupancy than short term rentals. The end result is the best return on investment.
As more people work from home, some will opt to travel to new places for longer periods of time, fueling the increase in furnished (monthly) rentals.
3. Technology Is Progressing
Thirdly, we must address the role of technology in order to explore developments in rental property investing. High-tech will be a major factor in all industry sectors and throughout an individual’s investment journey.
Furthermore, locating successful investment opportunities, buying income properties, renting out, and maintaining both short term and long term rentals are all part of the process.
In the coming years, we can anticipate current property technology companies to expand and new ones to emerge to fulfill all investor demands. It will make the real estate investing procedure easier and more rewarding.
The rental industry is predicted to remain lively. There will be various profitable investment options as long as investors carefully assess the industry and use credible data
Related: How to Start a Career in Real Estate Investing?
AirDNA vs Mashvisor: Is Mashvisor Better Than AirDNA?
At the beginning of your short term rental journey, the first decision you need to make relates to your investment property. You must 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 it is the only place you’re looking into, you could be missing out on some major opportunities.
It’s often the case that out-of-state properties 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?
In the video below, let’s compare Mashvisor vs AirDNA and see which is more suitable for your needs.
The team at Mashvisor developed two tools that would help you search for properties in an efficient manner. So, let’s focus on the Mashvisor vs AirDNA analysis.
Mashvisor Property Finder
The Mashvisor Property Finder suits the needs of both beginners and experienced investors. It’s also a popular tool for real estate agents and brokers.
You can use it to search for profitable short term rental investment properties in as many as 10 cities at the same time. The tool saves you lots of time searching for properties in individual cities. It also allows you to quickly identify the city with the best properties matching your investment goals.
Mashvisor’s Property Finder allows its users to search up to 10 cities simultaneously.
You can use a range of different criteria to narrow down your search for short term rental income properties. The Mashvisor filter options include the following:
- Price of the property
- Type of property
- Number of bedrooms
- Number of bathrooms
Once you’ve set your criteria, Mashvisor’s algorithm goes to work and provides you with a list of available rental properties for sale that match your requirements.
In addition, the properties are listed in decreasing order of their potential short term rental cash on cash return. It means at the top of the search results, you’ll find the short term rentals that can bring you the highest rate of return.
The next step for you is to access the detailed short term rental data analysis of the investment potential of each of the properties. This type of Mashvisor information will help you make an informed decision.
Want to give Mashvisor’s Property Finder a try? You can start by clicking here.
Investment Property Search and Heatmap
Another essential tool when it comes to comparing Mashvisor vs. AirDNA is the investment property search tool and the heatmap.
With Mashvisor’s investment property search, the process is somewhat 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 a comprehensive investment property analysis from the shortlist of properties.
As we always say, location is one of the most significant variables in real estate investing. That’s why Mashvisor provides the right tools to assist you in locating the best areas for investing.
In addition, neighborhood analysis is critical since various neighborhoods in the same location may provide varying results. Within the same market, two areas may provide varying rental earnings, property expenses, occupancy rates, and returns on investment.
That is where Mashvisor’s Heatmap tool comes in handy.
Mashvisor vs AirDNA: The Heatmap
The finest app for market analysis is Mashvisor’s real estate heatmap. The heatmap is a color-coded program that employs various colors to represent various results. The darker areas are frequently high-performing communities, whereas the lighter regions are dormant.
The results are displayed in accordance with your search criteria. You can use the following filters to set up your search:
- Long term and short term rental cash on cash return
- Short term rental occupancy rate
- Listing price
- Long term and short term rental income
This Mashvisor app is a quick way to discover the best areas to invest in, depending on your budget and income needs.
If you want to try it out yourself, you can find the Mashvisor heatmap tool by clicking here.
Can AirDNA Help You Search for Property Rentals?
Does AirDNA offer the same functionality as Mashvisor? 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 the Rentalizer tool is analyze the investment potential of any property in the US. However, to access the AirDNA rental analysis, you must first enter a property address. However, when comparing Mashvisor vs. AirDNA, the tool falls short if you’re not sure what you’re looking for.
This AirDNA factor 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.
Analyzing Rental Property
Regarding the Mashvisor vs AirDNA topic, AirDNA might not offer the same functionalities, but investment property analysis is available with both Mashvisor and AirDNA. Both Mashvisor and AirDNA market data give you the following information:
- Short term rental income
- Short term rental daily rate
- Short term rental occupancy rate
- Short term rental cap rate
- A breakdown of startup costs, which 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 when it comes to Mashvisor vs AirDNA that you should be aware of.
Mashvisor vs AirDNA: Mortgage Calculator
Both Mashvisor and AirDNA provide access to financial calculators. However, when you compare Mashvisor vs. AirDNA, the former features a mortgage calculator, while the latter doesn’t. For the investor, it is a significant difference.
Regarding the Mashvisor vs AirDNA topic, 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 your ROI quite significantly.
There are no estimates for the cash on cash return for short term rental 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 the performance of similar property types.
Both AirDNA and Mashvisor offer comparison lists for each analyzed property. However, Mashvisor’s list is more comprehensive. You can download the list of comparable short term rental listings and analyze the data as you see fit. You can then use it to supplement other analyses available on the Mashvisor platform.
Related: What Are Real Estate Comps and Why Are They Important for Real Estate Investors?
Short Term Rental 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. It means that you can be sure it is based on the performance of actual short term rental properties, as opposed to approximations and guesswork.
However, the accuracy of the data both Mashvisor and AirDNA use is different. 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.
Accuracy of the Data: Mashvisor vs. AirDNA
AirDNA uses mean values, while Mashvisor uses medians. Does it 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. Regarding Mashvisor vs AirDNA review, another reason for the higher degree of accuracy is that Mashvisor only uses data from Airbnb listings with three or more Airbnb reviews.
What it means is that the data is from actual Airbnb hosts already renting out their property for a time, instead of homeowners who gave Airbnb a try but quickly gave up.
Finally, the property data on the Mashvisor platform demonstrates a greater degree of reliability and accuracy than the data on the AirDNA website. Such 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 the 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 gathered from public records. The problem with such a method 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.
Exploring 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 the analysis one step further. It also provides data to investors who are considering renting out a property on a long term basis, such as a long term 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 a short term rental 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 short term rental properties generate a higher return on investment, on average. However, it’s not all plain sailing. Short term rental properties also face restrictions and stricter regulations. In many US markets, short term rentals are subject to operational limitations and, in some cases, prohibited altogether.
A number of other markets are also considering joining the trend. The property you purchase might be in a location where short term rental 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 reconsider the short term rental industry is that being a short term rental host requires a lot of hard work. Yes, there’s always the option of hiring a short term rental management company to take care of things. However, the practice comes at a cost and ultimately reduces your rental income.
A few months or years down the line, you may no longer be interested in being a short term rental host. You may want to consider whether you’re better off becoming a long term rental landlord instead.
Savvy real estate investors should always keep their options open and be prepared to switch strategies if circumstances dictate a change.
Related: A Guide to Investing in Short-Term Rental Properties With Ease
Mashvisor vs AirDNA: How Much Does It All Cost?
One final thing to consider is the cost of all the Mashvisor vs AirDNA short term rental data.
AirDNA offers a limited amount of data for free. However, you’ll quickly realize that the free data is not enough 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 can end up paying a lot of money if you’re not sure where you want to invest.
Conclusion
After a long Mashvisor vs AirDNA review, we’ve come to the conclusion. So, let’s see how things stand at the end.
There are numerous real estate apps available. Mashvisor, on the other hand, is the best real estate app for investors. It assists investors in overcoming many potential obstacles, such as being unable to select a lucrative location or estimate the income of a property.
Moreover, the platform also helps to estimate the return on investment and cash flow of the property accurately.
Now that 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 features 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. When you sign up for a full subscription, you’ll be able to access everything you need to start making money from a short term rental.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.
FAQs
What Is Better, Mashvisor or AirDNA?
Regarding Mashvisor vs AirDNA topic, Mashvisor offers much more overall features if you invest in both short and long term rentals. Both platforms include tools for finding, analyzing, and comparing properties based on rental revenue, cap rates, occupancy rates, cash on cash return, and other factors.
Is Mashvisor Reliable?
Yes, it is. Mashvisor is a dependable, user-friendly platform that can assist you in achieving short term rental profitability. It can help both seasoned short term rental managers and owners, as well as newcomers, in locating profitable properties in high-demand locations.
Is AirDNA Owned by Airbnb?
No, it is not. AirDNA uses Airbnb information, and AirDNA CEO Scott Shatford is an experienced short term rental manager. However, AirDNA is not owned by Airbnb.
Is Paying for AirDNA Worth It?
It depends on the plan you choose and what services you need. When it comes to investments where you could potentially lose a great deal of money, you should use more dependable data from the start.