Last updated on February 23rd, 2023
Since Airbnb started in 2008, it has created a new business for short-term vacation rentals. Platforms like Airbnb and Vrbo are opening up the holiday industry to everyday homeowners and creating a sharing economy. This has given them the power to acquire vacation rentals as a full-time occupation. As a result of the modernization of the vacation rental industry, more people are offering their homes for this low-risk investment.
Property investors like to do their due diligence before investing and there are two well-known software tools – AirDNA and AllTheRooms.
But which is the best option the two? Continue reading and find out!
What is AllTheRooms?
AllTheRooms is one of the top providers of short-term rental hosts’ tools and services. Their short-term rental data and analytics packages are their major services. Vacation rental owners, investors, property managers, tourism boards, hotels, and other businesses benefit from such knowledge.
Their mission is simple: “to gather and catalog every room on Earth and to use those data to provide in-depth insights into the growing vacation rental market.”
As a software primarily focused to help Real Estate Investors, AllTheRooms has helped users with the following:
- Improve rental plan and determine how much money the property can generate
- Examine whether a standard or short-term rental is fitter for your property and neighborhood.
- Keep track of individual markets and their progress over time.
- Look for undervalued properties and investment prospects in established locations.
AllTheRooms provides all of the normal historical and future analytics. Some of their innovative dashboard insights are where they set themselves apart.
Every month, AllTheRooms calculates a Vacation Rental Score. This score compares revenue, ADR, and occupancy from a company’s listing and the market to give a single grade to performance. It’s the ideal solution for exhausted property managers who need a third-party metric to communicate with owners or investors.
Let’s go through some of the features of AllTheRooms:
- Market Intelligence
- Competitive Intelligence
- Vacation Rental Score
1. Market Intelligence
In this feature, you’ll learn everything you need to know about the short-term renting industry. You will find the ADRs (Average Daily Rates), Occupancy Rates, and Revenue for each property type and location.
- Market Insight: When you initially open or view a specific market, you’ll get to see the dashboard as seen above.
If you click the “Learn More” button below, you’ll get a more detailed trend over the last two years. This can be quite useful in determining the market’s direction. You can observe if the overall number of listings is increasing or decreasing.
- Market Revenue: Knowing the whole available supply, trends, and the overall market size is quite beneficial. Property investors who want to start a business will need this to determine the size of the total addressable market.
In other words, you want to make sure that the market is big enough for you to expand. This is especially important if you’re thinking about targeting smaller cities and want to know what the overall short-term rental demand is like.
- Occupancy Rate: The occupancy rate is an important key metric that needs to be looked at. The first thing it shows you are the total occupancy rate for that market for that month. When you click the “Learn More” button, you’ll see a more detailed view from the past 1-2 years.
- Comparison Tools: One of the best things about AllTheRooms is how simple it is to compare different factors. Imagine comparing the Occupancy Rate with the available supply to see if it drops as the whole supply grows.
2. Competitive Intelligence
This feature helps you track your property’s performance and compare it to the competitors in your area. It can also discover opportunities for improvement and competitive gaps.
3. Vacation Rental Score
This feature provides a personalized property score by analyzing bookings, earnings, and reviews for every vacation rental in your city.
Once you’ve received your property score from AllTheRooms, here’s what you can do to maximize your score:
- Examine your competitors’ rates, scores, and the amenities they provide. This can help you strategize and change yours if necessary.
- Consider your listing’s booking lead time. If it is lower than the industry average, you may need to fill in your calendar earlier.
- Check to see if any fresh supply has arrived and stay on top of new competitors!
What is AirDNA?
A leading source of vacation rental data, AirDNA offers a wide range of tools to help its users find profitable investment properties. It offers competitive insights, custom reporting, and interactive dashboards covering more than 10 million rentals across 120,000 markets worldwide.
Vacation rental investors can leverage historical and future-looking data to maximize revenue potential with this tool. However, there are several users who look for Airdna alternatives as they find the tool inaccurate.
If you compare AirDNA vs Alltherooms, you’ll find that AllTheRooms offers a more reliable service. Although they are both useful tools, AirDNA is ideal if you are a moderate subscriber.
AirDNA MarketMinder: Product overview and key features
Investors can use the MarketMinder feature to understand how their vacation rentals compare to others and set their prices based on real-time demand predictions.
MarketMinder can help investors with the following:
- Locate investment opportunities
- Compare future demand with nearby comps
- Price smartly and accurately
- Grow portfolio with profitable listings
The Market Comparison tool in MarketMinder allows Airbnb investors to compare cities, neighborhoods, and zip codes with the number of bedrooms and guests it can accommodate. Investors and second-home buyers can analyze annual revenue, ADR, and occupancy trends over the past years to find the most profitable properties.
Calculate Revenue Potential & Cap Rate
Rentalizer, the Airbnb Financial Calculator, allows you to enter any address in the world and immediately receive projections on revenue, occupancy, ADR, and nearby comps. By customizing your bedroom count, purchase price, and major expenses, you can also receive operating income figures and cap rates to guide your investment decision.
These are MarketMinder’s most important features:
- Short-Term Rental Research feature with interactive maps
- Data-Driven Dynamic Pricing
- Customized Comp Sets
- Forward-Looking Airbnb Data
- Market Comparison
- Calculate Revenue Potential & Cap Rate
1. Short-Term Rental Research
This feature is handy for gaining competitive insights on Airbnb and VRBO rental properties. You can use interactive maps to examine how some neighborhoods and vacation rental properties perform. The feature includes over 25 crucial performance metrics: average daily rate, occupancy, rental revenue, booking lead times, active listing, etc.
2. Data-Driven Dynamic Pricing
With this feature, one might compare market rates to recommended rates based on property performance to have the most personalized dynamic pricing recommendations. Among the questions that could be answered are:
- At what particular hours guests are willing to pay a premium?
- How probable is it to be booked last minute?
- What types of events are increasing rates in your area?
3. Customized Comp Sets
MarketMinder also allows you to upload your property and connect your listings. One can leverage the dataset to curate an accurate list of nearby akin listings. You can sort and filter the competitive set according to ARD, occupancy rate, amenities, revenue, distance, experience, and quality.
4. Forward-Looking Airbnb Data
By using VRBO and Airbnb data, you are able to see what exact dates over the next six months are getting booked now. By doing so, one can adapt their strategy and gain a competitive advantage. This feature also makes it possible to understand how the market advertises prices and how much they are booked for.
Let’s take a quick look at different short-term rental analytics providers available in the market:
If you want to buy a house just to rent it out on Airbnb, you’ll need accurate and reliable data to study and make the best choices. You can estimate the return on your investment and how much to invest in a property if you know the occupancy rates and revenue of an area.
If utilized correctly, having the right tool will save you not only time but also money. Let’s have a look at our first candidate from AllTheRooms vs AirDNA.
If you’re just getting started or are a moderate user, AirDNA is a fantastic tool. When considering investing in a rental property, AirDNA data might be extremely beneficial. When managing a property, AirDNA’s post-purchase features fail to provide correct data. When making decisions on a daily or short-term basis, the facts may not be totally correct.
In comparison to AirDNA, AllTheRooms offers a reliable and easy-to-use service that shows the performance of short-term rentals in a given market to present it to you in an understandable manner. You can check to see if the market is performing well overall.
The good news is that there is a handful of Airdna free alternatives like Airbtics. Airbtics is the perfect software where you can find all the Airbnb tools you need to locate the most profitable property for your investment. Using accurate historical data from Airbnb, Airbtics draws out a clear path for you to discover the right property.
Months of market research are just a few clicks away using Airbtics Airbnb data tool. Get the actionable analytics and accurate data you need today!