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Airbnb Investment All About Airbnb

Florida Airbnb Rental Yield data

Florida Rental Yield Hotspots

Airbnb & Short-term rental market data on the best rental yields in Florida

  • Click the city name to see detailed market data. 
  • Used Home Values data from Zillow to calculate Gross Rental Yields.
  • Used 1-bedroom Airbnb revenue data from Airbtics App.
House Price Annual Revenue Airbnb Occupancy Rate Average Yield
Miami $338,450 $48,342 58% 14.28%
Fort Lauderdale $279,341 $28,490 57% 10.20%
St Augustine Beach $248,883 $32,579 59% 13.09%
Jacksonville Beach $314,580 $37,808 52% 12.02%
Orlando $155,167 $30,559 52% 19.69%
Tampa $235,172 $30,375 55% 12.92%
Clearwater $157,067 $30,820 57% 19.62%
Fort Myers $155,216 $12,398 47% 7.99%
Key West $705,980 $140,878 57% 19.95%
St Petersburg $175,035 $26,452 54% 15.11%

Available Dataset for purchase

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Airbnb Investment Blog posts

Airbnb Calculator | Host Profit Estimator

Airbnb Calculator

Instantly See Your Airbnb's Estimated Revenue

The leading Airbnb profit calculator in the short-term rental industry. Discover your Airbnb earnings potential.

Trusted by 50,000+ Short-Term Rental Businesses
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Check out our Free Airbnb Calculator

Wondering how to make the most money from Airbnb? Use the Airbtics Host Profit Calculator, a free Airbnb calculator to simulate your return on investment and cash on cash return, with any address worldwide.

Enter any address on earth to access the following data points for free with full transparency:

Airbnb Calculator by Airbtics
Airbnb Calculator

How much can I make on Airbnb?

A simple way to estimate your Airbnb revenue is by multiplying the year-round occupancy rate and your average daily rate of 10 Airbnb listings in your area. If they charge $150/night on average and achieve a 70% occupancy rate, it’s fair for you to assume that you will make around $150*0.70*365, which is $38,325 before expenses and taxes.

Airbnb Occupancy Rate x Average Daily Rate x 365 = Your Airbnb Revenue

Currently, there is a lack of good STR (short-term rental ) calculators in the market, and the ones that are available do not clearly show how they calculated the numbers. If you want to know how much can you make on Airbnb, then use Airbtics’ free Airbnb calculator to get a full transparent computation of your potential Airbnb earnings based on 10 to 40 comps.

We believe that making data-based decisions should be easy and accessible for you. Whether you’re an Airbnb host, property manager, property investor, estate agent, or anything in between, access valuable data most relevant to you and your business. 

 

 

Airbnb calculator - 2

3 Tips to Use Your STR Calculator More Effectively

1. Refine Comparable Listings: Review and remove comps that don’t match your property. Focus on those with reviews, close proximity, and similar property types to ensure accurate analysis.

2. Pull Additional Comps: If needed, use the Airbtics calculator to pull 30 more comps. This provides a broader data set, enhancing your market analysis.

3. Review Property Details: Check the details of each comp, including amenities, condition, and occupancy rates. This thorough review ensures a more accurate and insightful analysis.

How Does Airbtics Estimate Rental Income?

Airbtics is a short-term rental data platform providing historical, current, and forecasted rental income data. With the Airbtics app, you have access to over 15 million short-term rental listings from Airbnb and 54,000 visible markets globally. Since 2019, we’ve been tracking over 10 million rental properties weekly, which has enabled us to estimate rent of any address.

Our free Airbnb calculator has nearly 9,000 active monthly users–from Airbnb investors, hosts, property managers, real estate agents, and anyone who wants to know rental income on Airbnb investment property. Here are simple steps to use it:

We take our data accuracy seriously. Therefore, we update our data every week so our users can only get the fresh and latest Airbnb data from our app. Since 2020, the Airbtics data has 97% data accuracy in correlation with Airbnb’s financials. In fact, Awning’s Airbnb Estimator is powered by Airbtics. Learn more about our data accuracy..

Enter property address anywhere in the world

Enter the property address, select property type, choose the # of bedrooms, # of bathrooms, and whether the property has a pool. The provided details enhance the accuracy in generating optimal Airbnb estimated revenue.

You can also search directly in the Airbtics dashboard to calculate ROI of your property. All you need to do is to sign up for free.

What’s unique about our Airbnb Rental Calculator?

Our Airbnb profit calculator goes beyond the typical Airbnb calculators out there. With its notable features, you capture more insights to make smarter decisions.

  • Comps Transparency: Imagine you want to know how much money you can make from renting your house on Airbnb. This special tool not only tells you about houses nearby but also finds ones that are a lot like yours. That way, you can trust the information more and be sure you’re making a good choice for your rental.
  • Rental Arbitrage: This Airbnb calculator tells you how much money you’ll earn in Airbnb arbitrage by looking at things like how much you pay for rent, one-time costs, and monthly expenses. It helps you know if renting your place is a smart money move.
  • Mortgage Calculation: Let’s say you borrowed some money to buy your house, and you’re wondering if it’s a good deal. This free Airbnb estimator lets you put in the details, like how much interest you’re paying and how much you put down. It’s a calculator that helps you see if your house is making you money or not.
  • Comparison Tool: This free Airbnb tool is like having a magic way to see lots of different houses all at once. It helps you pick the best one by showing you how much money you can make, whether it’s all the money or just what’s left after paying bills. It helps you choose the one that will give you the most money. So, it’s like your money-making assistant!

Airbnb Investment FAQs

Is Investing in a vacation rental worth it?

Many studies have proved that housing is one of the most stable assets with a high average annual return. Note the annual return consists of home value appreciation and rental yield. By doing a vacation rental, you are renting it out for a shorter period at a higher price. This comes with a higher risk and seasonality, but the return is always higher. 

 

Are you investing in a good market? Have population, income, and property prices been inclining last couple of years? Is there good long-term rental demand? if so, you can always turn your vacation rental into a long-term rental. 

Where do I find short-term rental investment properties for sale?

Airbtics, Rabbu, The Offer Sheet, AirDNA, and Mashvisor are known companies providing property for sale data nationwide. All companies only provide such services to US investors, with the exception of Airbtics, which covers the UK, Australia, Canada, and European markets. Fill out the form below if you want to receive highly profitable deals. 

Should I list my short-term rental property on VRBO?

Airbnb is the biggest platform for booking vacation homes, but VRBO is more prevalent in some areas. Using our VRBO calculator, you can see how many VRBO and Airbnb listings are in your address. See how many VRBO listings are there in your market.

Airbnb Earning Calculator FAQs

Which expenses should I include?

Monthly Expense: You should include 1) repayment portion of mortgage 2) bills and utilities and 3) supplies fee. You should not include cleaning fees. Airbnb guests pay the cleaning fee, so it isn’t included in either ADRs or expenses. 

Yearly Expense: You should include 1) property depreciation 2) any other annual recurring fees. 

What is a one-off cost?

One-off cost is a one-time expense (legal fees, refurbs, transaction fees, mortgage fees etc) you pay when purchasing property and paying for renovations. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return

I'm confused with profit tax

In most countries, you need to pay taxes on any profit generated from your properties. However, the way they calculate tax isn’t a flat rate. For example, in the U.K., you won’t have to pay tax on a certain amount of profit at first. 

In that case, you can first simulate the profit with 0% profit tax, which will then show you how much your revenue and expenses are. Then, you can calculate yourself around how much % of tax you need to pay from your profit, then put that % in the profit tax section. 

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Airbnb Investment All About Airbnb

Fractional vacation home ownership provider reviews (Pacaso, Kocomo, Everomes, ReAlpha etc)

Do you want to take advantage of the rapid rise of the home-sharing economy but don’t have the capital to invest?

In 2022, you can be an Airbnb or vacation homeowner with $100, via investing in a fractional short-term rental fund. They will allow you to buy a share of vacation property similar to buying a share of a company. Keep on reading to learn more!

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    Why invest in Short-term Rentals?

    Before diving deeper into fractional short-term rental funds, let’s see why one would want to invest in vacation homes. 

    The home-sharing economy is rapidly growing even during the pandemic, in fact, the pandemic was the opportunity for Airbnb to take a big share of hotel businesses. In major staycation destinations in the US, we have observed a 32% – 51% surge in 2021 alone. 

    fractional vacation home ownership

    A typical long-term rental property generates 1-5% a year but a short-term rental produces 5-25% a year. It is riskier and less passive than managing long-term rentals, but this can be an attractive option for someone who has retired and is looking forward to doing a small amount of work while befriending guests! 

    How do I choose the right fractional vacation home ownership company? 

    Companies like Pacaso, Here, Everomes, Kocomo, and PartBnb allow you to purchase a share of a specific vacation home. This gives you full control of choosing a vacation home for investing.  On the other hand, ReAlpha is a short-term rental fund, so they’ll manage a bunch of short-term rental portfolios and you are buying a fractional share of the portfolios.

    One of the benefits of investing in a fund is a lower risk since they will hedge their risk by investing in multiple properties. 

    fractional vacation home ownership

    As I mentioned earlier, you can invest with as little as $100 for Here or $1,000 for ReAlpha. Yet, if you are looking to have more “real” ownership (also known as vacation home co-ownership) like staying at the property you partially own, Picasso or Everomes offer what you need. You have to purchase at least 15% of the entire property price, yet you can stay in those properties for up to 6 weeks a year. If staying at a vacation rental a few weeks a year is what you need, these offers may work better. 

    Looking for Partial vacation homeownership in the US & Mexico?

    Kocomo probably is the best bet if you are looking for somewhere close to the US. It is a Mexico-based startup with about a $60M fund available for investing in vacation rentals. They currently have 27 vacation rentals in both Mexico and Miami. 

    fractional vacation home ownership

    Here.co was only founded in 2022, and they have secured $2 million in funding in a pre-seed round,  and they will start investing in Florida vacation homes. You can start investing with as little as $100, but they only have 1 property for investment currently! PartBNB focuses on Caribbean vacation homes, and they have 3 upcoming investment opportunities. 

    how much can you make on airbnb

    Investing via fund? 

    ReAlpha was founded in 2020 founded by Giri Devanur who has experience in taking a company to NASDAQ in the past. This company has a $6 million fund as of now, with 40 employees based in Ohio. They are planning to invest in Texas primarily. 

    fractional vacation home ownership

    You can invest with as little as $1000, but here’s a thing, you are not investing in a specific vacation home, but you are investing in the fund. They will purchase a bunch of vacation homes on your behalf and generate profits and will share that with you. We have written an in-depth review of ReAlpha below. 

    Looking for Shared ownership of Luxury vacation homes? 

    fractional vacation home ownershipPacaso focuses more on luxury short-term rentals, and they have around 85 vacation homes that investors can choose from, as of 2022 March. The minimum amount of investment you need to make starts from $500,000 for 15% (⅛) of ownership. Second home shared ownership in the US just got easier with Pacaso! 

    Everomes focuses on European holiday homes, and they have about 55 different investment options. You will share a vacation home investing with 7 other people, so you will own 15% of the ownership. They have homes in beautiful Alpes and the Mediterranean sea. If you are looking to have a luxurious stay in Europe while generating some passive income, Everomes could be your best bet! 

    Is reAlpha a good investment? 

    Here are our reAplha reviews.  Once you sign up, they will ask you a series of questions, such as your name, address, and if you are an accredited investor or not. You will be able to invest even if you are not an accredited investor, so don’t worry. They’ll ask how many shares you’d like to invest and then generate a contract for you. That is it! 

    This was quite an obscure process since we want to exactly know which properties they will be investing in before signing a contract. So we dug into the contract a little deeper, and there were a few fine prints, which other Reddit users have discovered. 

    We have looked into a few communities to understand what the actual users say. There seem to be a few caveats. 

    realpha rental investmentOne anonymous user from Reddit warns: “I was super excited about ReAlpha till I spent the time reading the Reg A+ Circular. Investing in ReAlpha Asset Management is not the same as investing in ReAlpha Tech. Read pages 2 & 37 of the Circular: Investors who invest in the Reg A+ offering are putting up nearly all the money (~90%) for less than 16% ownership.

    ReAlpha Asset Management only owns a few Airbnb homes but is selling shares at a valuation of $400 million. This is technically not illegal because it is disclosed, however, they are taking advantage of people’s laziness to do their own due diligence.” 

    short-term rental reviewsAnother anonymous user from Reddit stated: “Buy equity in specific properties just like you would buy stock or shares in a company. We pair you with a few like-minded investors to form a syndicate, so together you can cover the down payment. Investment properties usually require a 25% down payment, but with reAlpha it’s 10% because of our relationship with lenders, making it more affordable. reAlpha is also part of each syndicate, retaining 51% ownership of each property so you know our interests are always aligned with yours.” 

    Conclusion 

    short-term rental investment fund review

    Fractional homeownership isn’t something new. There have been many shared ownership for short-term rentals, even private equity-like KKR or Blackstone have been investing in short-term rentals and making them available to their exclusive investors. However, with the rise of Airbnb, investing in short-term rentals is getting easier and more attractive with these new innovative startups. 

    Did you know that you can find out the return on investment of a vacation home with actual data points?

    Sign up to our app now! Some of these companies are powered by Airbtics data as it allows investors to understand the market.

    Categories
    Airbnb Investment

    Airbnb Calculator: How to estimate your earnings

    Want to estimate your Airbnb earnings? Our Airbnb Calculator is just the right tool for you. Even before you buy a rental property to utilize with the Airbnb method, you’ll need to put in a lot of effort. The Airbnb income estimation process is a part of this study. This is the process of attempting to calculate a rate or figure that represents the investment property’s potential for profit. The higher the number, the greater the revenue property’s potential. So, how do you calculate Airbnb Profits and earnings in order to locate good rental properties?

    Our Airbnb income calculator allows you to simulate potential revenue generated through the properties you are/will be investing in and operating as short-term rentals. 

    From the average daily rate (ADR) growth and occupancy percentages to one-off costs, our Airbnb calculator can help you simulate your potential profit after tax and your potential cash on cash return.

    Make a market analysis of Real Estate –

    First and foremost, you must choose a decent location for your Airbnb investment property– one that is profitable– before attempting to calculate Airbnb income for a specific rental property. And after you’ve found one, you can estimate the total Airbnb income for the location. Of course, you may achieve all of this by doing a real estate market study. Essentially, this technique aids the real estate investor in determining the following:

    1. Research the area’s real estate appreciation rates.
    2. Combines historical Airbnb data with current rental statistics, as well as predictive analytics. In other words, you’ll have information that “predicts” the housing market’s future. In this manner, you’ll be able to learn about future real estate market changes and how they’ll affect your Airbnb earnings.
    3. It determines whether the area you’ve chosen is suitable for Airbnb investment properties. Specific neighborhoods are sometimes better for traditional rentals, which means you won’t make as much money as you’d like.
    4. The real estate market study will offer a great deal about the area’s rental demand. This is something you should be aware of because it will have a direct influence on your Airbnb rental income.
      You’ll have a preliminary Airbnb income estimate for the location once you’ve gathered all of this information from your market analysis.

    Analyze Potential Investment Properties

    Completing an investment property study is the next step in estimating Airbnb rental income. Start exploring Airbnb properties for sale now that you’ve identified a good location. Once you’ve found a few rental houses that appeal to you, calculate the following Airbnb return on investment metrics:

    Flow of Cash

    You may estimate Airbnb’s earnings by looking at your cash flow first. Airbnb rental income minus monthly rental expenses are the primary sources of cash flow. Assume you earn $1,000 per month from your short-term rental property and spend $600 on the mortgage, upkeep, and insurance. After deducting $600 from $1,000, you will have a $400 positive cash flow.

    Rate of Capitalization

    The next step is to calculate the capitalization rate using the cash flow analysis. In a nutshell, the cap rate is the rate at which Airbnb returns are calculated in relation to the property price. As a result, the cap rate formula is as follows:
    Net Operating Income/Property Price = Cap Rate

    Return on Investment in Cash

    The cash on cash return is the final return on investment metric for estimating Airbnb income. The capitalization rate is fairly comparable to this metric. Instead of dividing the net operational income by the property price, we divide it by the amount you spent out of pocket. Investment property finance is involved in this case. So you would have put down 20% or $32,000, as a down payment, with the remainder covered by the mortgage. As a result, we use the following formula to calculate the cash on cash return:
    Net Operating Income / Actual Cash Investment = CoC Return
    CoC = $4,800 / $32,000 * a hundred percent = 15%

    Airbnb data
    Airbnb Income Calculator
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    ADR Growth
    Annual Appreciation
    Expenses Increase
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    Availability
    House Price
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    Interest Rates
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    Profit Analyzer

    Cash on Cash Return
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    Airbnb data

    Investing in Real Estate Tools

    Estimating Airbnb income manually or using a real estate investment research worksheet and inaccurate tools like Airdna Calculator is impossible. To produce such estimations, any real estate investor, especially a rookie, requires the appropriate real estate investment instruments. At present, Airbnb calculators are scarce, and those that are available (like the Airdna calculator) do not clearly show the calculation process. As a result, we recommend that you use our Airbnb calculator to estimate Airbnb income more accurately. The core engine of our calculations is transparent and available online.

    Read More:
    Airdna Alternatives
    5 Short-Term Rental Tools for Perfect Pricing

    Airbnb Income Calculator FAQs

    Most frequently asked questions and answers

    What should I include in expense?

    Monthly Expense: You should include 1) the repayment portion of the mortgage 2) bills and utilities and 3) the supplies fee. You should not include cleaning fees. Airbnb guests pay the cleaning fee, so it isn’t included in either ADRs or expenses. 

    Yearly Expense: You should include 1) property depreciation and 2) any other annual recurring fees. 

    What is a one-off cost?

    One-off cost is a one-time expense (legal fees, refurbs, transaction fees, mortgage fees, etc) you pay when purchasing property and paying for renovations. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return

    I'm confused with profit tax

    In most countries, you need to pay taxes on any profit generated from your properties. However, the way they calculate tax isn’t a flat rate. For example, in the U.K., you won’t have to pay tax on a certain amount of profit at first. 

    In that case, you can first simulate the profit with s 0% profit tax, which will then show you how much your revenue and expenses are. Then, you can calculate how much % of the tax you need to pay from your profit, then put that % in the profit tax section. 

    Categories
    Airbnb Investment All About Airbnb

    Best Cities for Airbnb investment in 2022 Europe

    Table of Contents
      Add a header to begin generating the table of contents

      Since Airbnb’s launch in 2008, many property owners have found that renting out holiday homes to short-term guests on the platform is a lucrative way to make money. Purchasing a rental property and renting it out on Airbnb is another popular real estate investment method. Real estate investors are presently conducting research to determine the best cities for Airbnb investment in Europe this 2022.  

      So, if you’re looking to invest in real estate this year by purchasing a short-term rental home, this article the greatest locations for Airbnb investing in 2022.

      Best cities for Airbnb investment in 2022- Europe

      1. Ballstad, Norway

      Ballstad is the place to go if you’re looking for some excitement. It is well-known on a global basis due to its magnificent terrain. Local and international visitors are sure to flock to your event. Furthermore, because the allure is on the outside, you won’t have to worry about interior design or internal facilities (though they are still vital!).

      In addition to this, Airbnb is legal to operate in Norway. According to Airbnb rules in Norway, there is a default limit of 90 days to host Airbnb in a condominium property type and a right to host 30 nights without permission.

      Best Cities for Airbnb investment in 2022 Europe
      Best Cities for Airbnb investment in 2022 Europe

      According to our Airbtics Dashboard, Ballstadtops the list of  Best cities for Airbnb investment in 2022-Europe. In summary, 89% of revenue comes from Multiple Nights Stays and an average listing gets 12 bookings annually, which generates $912 from cleaning fees. The average occupancy rate for a 2-bedroom property in Ballstad is 42%, with a nightly rate of $175 and annual revenue of $26,722.

      2. Shanklin, England

      Despite the fact that Brexit was a major setback for intercontinental travelers, it resulted in a shift in domestic travel for British citizens. Many Brits are electing to holiday in their own backyard rather than combing through paperwork, new laws, and visas, generating a surge in popularity for coastal communities like Shangri-La. This charming English town is located on the Isle of Wight, which has long been a popular British vacation destination.

      The exciting part is, Airbnb is certainly legal in England. According to Airbnb rules in Isle of Wight, there are lesser regulations to operate Airbnb in this area.

      Best Cities for Airbnb investment in 2022 Europe
      Best Cities for Airbnb investment in 2022 Europe

      According to our Airbtics Dashboard, Shanklin  tops the list of best cities for Airbnb investments in 2022. 60% of revenue comes from Multiple Nights Stays. An average listing gets 36 bookings annually and generates £1,917 from cleaning fees. The average occupancy rate for a 2-bedroom property in Shanklin is 81%, with a nightly rate of £107 and annual revenue of £34,045.

      3. Athens, Greece

      Athens is one of the best Airbnb investments in 2022 because it has the highest return rate in comparison to other major European cities. With over 5% yield per annum, Athens attracts more property investors as its demand consistently grows.

      The good news is, Athens has no strict laws against Airbnb. According to Airbnb rules in Athens, hosts will need to register and have a certain amount of time within a calendar year to operate an Airbnb in Athens.

      Best Cities for Airbnb investment in 2022 Europe
      Best Cities for Airbnb investment in 2022 Europe

      According to our Airbtics Dashboard, Athens  tops the list of best cities for Airbnb investments in 2022. 70% of revenue comes from Multiple Nights Stays. An average listing gets 24 bookings annually and generates €796 from cleaning fees. The average occupancy rate for a 2-bedroom property in Athens is 70%, with a nightly rate of €80 and annual revenue of €20,301.

      Airbnb data
      4. Marseille, France

      Marseille is a gateway to the Mediterranean, combining the magnificence of French architecture, food, and culture. It benefits from year-round tourism due to its combination of beautiful summer weather and inexhaustible cultural attractiveness. This is an excellent investment for a business owner who wants to keep bookings coming in the year.

      According to Airbnb rules in Marseille, hosts are not allowed to let on a commercial basis of an entire property. This means that a property cannot be used as a primary residence to visitors staying for short time periods.

      Marseille
      Marseille STR

      According to our Airbtics Dashboard, Marseille tops the list of best cities for Airbnb investments in 2022. 65% of revenue comes from Multiple Nights Stays and an average listing gets 24 bookings annually, which generates €1,311 from cleaning fees. The average occupancy rate for a 2-bedroom property in Athens is 59%, with a nightly rate of €110 and annual revenue of €24,536.

      5. Funchal, Portugal

      Funchal, located in the heart of Madeira, is one of Portugal’s most popular surf destinations. Funchal making waves in the real estate market. Popularity is extending beyond the major centres and into tiny communities like Funchal, like a younger brother to some of Madeira’s larger towns.

      Here’s what you need to know: It is legal to operate an Airbnb in Portugal – also known as local accommodations. According to Airbnb rules in Portugal, hosts will need to register and get certain permits from local city councils.

      Best Cities for Airbnb investment in 2022 Europe
      Funchal STR

      According to our Airbtics Dashboard, Funchal tops the list of best cities for Airbnb investments in 2022. 60% of revenue comes from Multiple Nights Stays. An average listing gets 24 bookings annually and generates €1,272 from cleaning fees. The average occupancy rate for a 2-bedroom property in Funchal is 89%, with a nightly rate of €75 and annual revenue of €25,898.

      Categories
      Airbnb Investment All About Airbnb

      Best Cities for Airbnb investment in 2021


      Table of Contents
        Add a header to begin generating the table of contents

        Since Airbnb’s launch in 2008, many property owners have found that renting out holiday homes to short-term guests on the platform is a lucrative way to make money. Purchasing rental property and renting it out on Airbnb is another popular real estate investment method. Real estate investors are presently conducting research to determine what the best cities for Airbnb investment in 2021 are.  

        So, if you’re looking to invest in real estate this year by purchasing a short-term rental home, you’ll want to know where the greatest locations for Airbnb investing in 2021 are.

         

        Best cities for Airbnb investment in 2021

        Incline Village, NV

        Some of Lake Tahoe’s most stunning properties found in Incline Village. Homes with water views are desirable on the lake’s north bank, and beach access is even better. Incline Village has the atmosphere of a large country club rather than a normal vacation destination. Tennis facilities and golf courses are available for those who want to work off some sweat; thrill junkies can try mountain biking down the Flume trail, a steep road with spectacular views of the turquoise waters below. In the winter, there’s plenty to do, such as skiing at Diamond Peak Ski Area or visiting the spas and casinos.

        best cities for airbnb investment in 2021 incline village

        According to our Airbtics Dashboard, Incline Village tops in the list for Best cities for Airbnb investment in 2021. There are overall more than 562 Airbnb listings out of which 39 are 1 bedroom. Monthly revenue for most properties being more than $6260/month with occupancy being more than 49%.

        Sea Isle City, New Jersey

        Sea Isle City is a charming seaside town on an island off the coast of New Jersey, complete with canals fashioned after Venice. Because it’s a small town, there aren’t many houses for sale, and prices might be high. However, given its proximity to both New York and Philadelphia, it’s simple to see why the city’s population swells throughout the summer. Condos or town homes with seaside views and close access to the downtown area are a more inexpensive option.

        best cities for airbnb investment in 2021 sea isle city

        According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 2204 Airbnb listings out of which 287 are 1 bedroom. Monthly revenue for most properties being more than $4833/month with occupancy being more than 42%.

        Fredericksburg, TX

        Fredericksburg is a community in Central Texas with ruggedly gorgeous landscape, scattered live oaks, and tall-grass prairie. This region, dubbed “Texas Hill Country,” has drawn wealthy transplants looking for a gorgeous setting close to urban conveniences. Austin, to the east, and San Antonio, to the south, are each only an hour and a half distant. In this German-influenced town, there are plenty of places to dine and shop, and this is also Texas wine country, so there are dozens of vineyards where you can enjoy some fine Lone Star State pinot noir. Aside from the strong cowboy vibe, there are several cultural activities, including museums, theatres, art galleries, and a variety of festivals.

        best cities for airbnb investment in 2021 Fredericksburg

        According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 790 Airbnb listings out of which 241 are 1 bedroom. Monthly revenue for most properties being more than $4488/month with occupancy being more than 47%.

        Airbnb data
        Leavenworth, Washington

        Leavenworth, a Bavarian hamlet on the West Coast, is full with Alpine-style structures and German restaurants. The community is located about two hours east of Seattle and serves as a gateway to local ski resorts and wineries. The Nutcracker Museum, which has hundreds of figurines, some dating back centuries, is a good option for those who prefer to stay near to downtown.

        best cities for airbnb investment in 2021 leavenworth

        According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 219 Airbnb listings out of which 42 are 1 bedroom. Monthly revenue for most properties being more than $3829/month with occupancy being more than 46%.

        St. George, Utah

        St. George, which is just 90 minutes from Las Vegas and four hours from Salt Lake City, is a popular weekend getaway spot, with the whole range of sought-after resort-area amenities—golf, buzzy cafes, and outdoor adventure!—well-represented. Take in the red Navajo sandstone on the trails in Snow Canyon State Park, or cool off in the enormous reservoir at nearby Sand Hollow State Park. For the more adventurous, St. George is also a wonderful base camp for visiting certain national parks—Zion National Park is less than an hour away, and the Grand Canyon is about two and a half hours away.

        best cities for airbnb investment in 2021 st. george

        According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 756Airbnb listings out of which 131 are 1 bedroom. Monthly revenue for most properties being more than $3698/month with occupancy being more than 57%.

        FIND STATS FOR YOUR CITY – CLICK HERE

        Read More – How much can you make on Airbnb

        Categories
        Airbnb Investment All About Airbnb

        Best Cities to start Airbnb Rental Arbitrage Business in the US.

        Best Cities to Start Airbnb Rental Arbitrage Business

        The pandemic has hit short-term rental businesses all over the world, but it’s not the case in the US. It’s backed by data that many of the remote US destinations have experienced the most profitable Summer in 2020 and are looking for another profitable Summer in 2021. So it might seem the world is falling apart and everything is going down. But the data is speaking otherwise, according to 2020 airbnb data this is a great time to start your STR journey. The market is about to bounce back as people are craving the outdoors. So to help you focus more on the important things in your STR journey, and not the boring research part, we have compiled a list of the best cities to start Airbnb in US.

        The Airbnb business is booming

        The rental arbitrage model is extremely attractive for hungry and motivated entrepreneurs. You don’t need much money to get started with your first rental. In fact, you can even start by renting out your own room (and you stay the night at your car or friend’s house) to save up the initial deposit to start your first arbitrage unit. However, the rental arbitrage won’t generate passive income – It’s not true passive income because you constantly need to pitch to landlords and manage day to day operations.

        Rental Arbitrage is booming
        dashboard of best cities to start airbnb

        What is Airbnb Rental Arbitrage?

        Maximize your rental property revenue with more inventory and dynamic pricing tools.

        Data-backed Market Research: You start with conducting thorough research about the market to find the profitable neighborhoods, amenities, and styles.  

         

        Pitch to landlords: Now you know the number and you know this property will generate profit for sure. It’s time to contact landlords to get permission to do rental arbitrage and get accepted.

          

        Efficient operation & Profit: A lot of hustles in putting your listings on various channels, right pricing, and many other tactics. Still, I trust that you will be able to learn along the way as long as you have started with the right properties. 

        man jumping

        How to identify profitable rentals for rental arbitrage?

        Make more informed decisions with the power of accurate data.

        short term rental data use case for property investors

        Definition of Arbitrage: In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets. 

        As the definition suggests, you need to find the gap between the “long-term rental market” and the “short-term rental market”. Fortunately, finding a long-term market base price is straightforward. You can easily find the market prices for the long-term rental market in Zillow. Finding the short-term rental market price is more difficult since looking at “daily rate” and “cleaning fees” on Airbnb isn’t enough because you also need to know “occupancy rates”. Therefore, the key to the success of rental arbitrage research is in short-term rental market research.

        Then, what is the “key” of short-term rental market research? It is basically clearly identifying the range of profit of properties in different neighborhoods and by the size of properties

        The profit consists of three variables – 1) occupancy rate, 2) average daily rate and 3) expenses. The size of properties is a little bit more complex as it consists of the “number of bedrooms, bathrooms, and the total number of beds”. I will go through different tools to find out the occupancy rate and daily rate of different neighborhoods a little bit later. 

        How much does it cost to start your first rental arbitrage?

        Stay up-to-date with relevant industry trends.

        Don’t panic. After all, the starting cost is quite predictable once you do enough research. 

        • Deposit 
        • First-month rent 
        • Furnishing (Beds, Sofa, Dishes etc) 
        • Supplies (Here’s a checklist)

        If I were you, I would start with basic furniture only – one mattress with a base and a cover per room, one used sofa, a pot, a pen, and plastic cutleries. Once I receive a few bookings, then, I will start investing more stuff like lamps, coffee pots, and so on. Starting with a huge budget will make you feel pressured to get a better return, so please be a minimalist when you get started. 

        Airbnb Analytics dashboard image

        Tips to do market research effectively and correctly

        Use competitive and intelligent data to your advantage.

        You need to make a comparison table to structure your research and efficiently search for your next properties. The template could look like below. 

        Profit before paying rent = (occupancy rate * daily rate) + cleaning fees (that you charged from guests) – cleaning fees (that you actually spent) – other expenses 

        Now you know the profit before paying rent, so now you can just identify which properties on Zillow can be profitable when you rent them. On Zillow, as of today (2021-06-20), there is only one property that can profit $500 a month to you.

        best cities to start airbnb - redwood

        How much does it cost to start your first rental arbitrage?

        Stay up-to-date with relevant industry trends.

        Now I guess you are wondering how much a short-term rental around your neighborhoods is making. 

        You can use our research tool to find it. You can choose one city, and if you zoom in to a specific neighborhood, it will show the average daily rate and occupancy rates from the short-term rentals on the map. 

        If you do research, you will find out that there are so many profit combinations (neighborhoods x property size). 

        Now let’s take a look at the best cities to start airbnb in the US.

        best cities to start airbnb - airbtics

        Best Cities to Start Airbnb in US

        To make it easy for you, below are some (not all) best cities to start Airbnb in the US that have possible profitable combinations for rental arbitrage. 

        There’s no point in giving you some numbers of expected rental arbitrage returns because it will be depending on the exact neighbourhood and the size of properties you are going to rent. Please do your thorough research to find out some areas where there’s a high demand for short-term rentals while having excessive long-term rental supplies. 

        San Antonio

        New York City

        Las Vegas 

        San Diego

        Chicago

        Miami

        Milwaukee

        Columbus

        Indianapolis

        Memphis

        Philadelphia

        Kissimmee

        Phoenix

        What's next?

        If you are doubtful about using data solutions, I’d recommend you to 1) speak to a property manager in your area 2) ask other Airbnb hosts in various Airbnb host’s communities 3) collect data on your own from Airbnb website. 

        If you are lost, you can find other Airbnb hosts from the following links. 

        Read More from me
        Rental Arbitrage Florida 
        AirDNA Review: Does it still hold up in 2021? 
        5 Short Term Rental Tools for Perfect Pricing

        Categories
        Airbnb Investment All About Airbnb

        Best Airbnb deals in Dallas (2021 Updated)

        Bring out your cowboy boots and get ready to explore the best deals in yet another amazing southern city of Dallas, being bordered with Mexico and with more than 42% Hispanic population, you’ll find fusion foods that are so amazing and unique that it’ll be hard to find such combinations anywhere else in the country. Dallas is the fastest growing city in the US currently with a 1.3 million population and it’s inviting more people to come and explore the culture. Here is the list of 9 Best Airbnb deals in Dallas that you can’t find anywhere else.

         

        Downtown/Deep Ellum 1 BR – 3 guests  ($60)

        Deep Ellum house in dallas

        Located within walking distance to the city center, this place is great if you aren’t bringing your car with you, Sheraton Downtown and Deep Ellum are 2 min walking from this location. At this price point finding a place in the city center is near impossible.

        Why is it the Best Airbnb Deal in Dallas?

        • Great location – walking distance from major Dallas attractions
        • Affordable with sufficient amenities for the price.
        • Free Parking
        • Experienced Host with 4.7 ratings and 650+ Review

        Click Here to Book

         

        Artist’s Loft Near Deep Ellum & Fair Park – 1BR | 2 Guests ($77)

        artist's loft near deep ellum in dallas

        If you love colors and artistic stuff and want to inspire the artist in you, then this loft near Deep Ellum is the perfect place for you, surrounded by trees and featuring the old original artwork the design and overall architecture will surely inspire you as soon as you enter the house, and the price will surely motivate you to stay a day extra. 

        Why is it the Best Airbnb Deal in Dallas?

        • 15 mins from the Downtown Dallas
        • Beautiful design and artwork throughout the house
        • Free Parking
        • Super-Host with 4.99 Rating & 130+ reviews

        Click Here to Book

         

        Belle 2BR Bungalow | Downtown Med Center Stadium ($145)

        best deal in dallas

        This is an 1100 Sqft Duplex apartment on a half-acre property, located in the central Metroplex in a safe and quiet neighborhood. Great location only 30 mins from fort worth and 15 mins from the airport. This house is perfect for someone looking for some extra space and a quiet neighborhood to stay in peace with some lush greenery around the house. 

        Why is it the Best Airbnb Deal in Dallas?

        • 15 mins from the Airport and Fort Worth
        • Safe and beautiful neighborhood with a big back and front yard
        • Free Parking
        • Super-Host with 4.91 Rating & 162+ reviews

        Click Here to Book

         

        2BR – 6 Guests | Near Main Street Garden Park ($164)

        main street garden park dallas

        This house is managed by Sonder, which is a professional Airbnb management company. The overall vibe and design of this place are very modern and have been recently renovated so everything here feels new. This place has large windows and receives plenty of sunlight throughout the day, this place also has a fully functional equipped kitchen and all the smart appliances. There is a theater room, gym, and lounge in the complex which is accessible by the guests as well. 

        Why is it the Best Airbnb Deal in Dallas?

        • Modern design and recently furnished
        • 10 mins walking from downtown
        • Digital Self-Check In
        • Gym, Lounge, and Theater Room
        • Experienced Host with 4.42 Rating

        Click Here to Book

         

        1BR house with hot tub, backyard, and private entrance ($70)

        1BR house with hot tub, backyard and private entrance dallas

        This spacious 1 bedroom house is located in Downtown Dallas and within walking distance of all the major spots in Dallas center. This is a pet-friendly house, also the host provides a bike to stroll around downtown and in the neighborhood. The house is also equipped with an electric car charger for all the Tesla drivers. This place also has a hot tub, fireplace, smart tv with Netflix, and free parking. For $70 this place is a steal in the center of downtown Dallas.

        Why is it the Best Airbnb Deal in Dallas?

        • Super Host with 4.93 Rating
        • Plenty of amenities for the price 
        • Budget-Friendly
        • Pet Friendly

        Click Here to Book

         

        1BR – 2 guests | Cozy Private Room  ($45)

        Cozy Private Room in dallas

        If you are on a budget and don’t mind sharing your place with someone else then this place can provide you a comfy home away from home at just $45, you will be a lockable private room and bathroom, this place is great for a solo traveler on a budget looking for a comfy place with all the basic amenities without shelling out a lot of money.

        Why is it the Best Airbnb Deal in Dallas?

        • Super Host with 4.89 Rating
        • Super Affordable with all basic amenities
        • Fully functional stocked kitchen
        • Free Laundry
        • 15 mins from Downtown

        Click Here to Book

         

        Bardo Lofts Studio | 3 Guests ($80)

        Bardo Lofts Studio in dallas

        If you are a sucker for modern design then this studio house is perfect for you, located in this newly constructed residential building. This place is perfect for anyone who wants to live in peace and luxury at the same time. Though being in a residential complex there are a lot of rules that you need to follow but if you love the design and price of this place then it’s totally worth it.

        Why is it the Best Airbnb Deal in Dallas?

        • Modern Design and Architecture
        • Walking distance from Bishop Arts
        • New construction
        • Experienced Host with 4.70 Rating

        Click Here to Book

         

        3 BR – 6 Guests | Green House by Downtown  ($102)

        This is a perfect place for people looking for some extra space and is traveling with Pets. With a huge front and side yard, this palace is the perfect place for your pets to run around and it also has a deck patio to hang out and read some books in peace when your dog is creating havoc in the garden. This palace has 3 decent-sized rooms with 2 queens and 1 double bed. Free parking on premises is available for the guests.

        Why is it the Best Airbnb Deal in Dallas?

        • Located in Downtown Dallas
        • Pet Friendly & Self check-in
        • Free Parking
        • Ample of space in the house
        • Super Host with 4.78 Rating

        Click Here to Book

         

        9 Guests – 3 BR | Cozy Bungalow Retreat by Downtown Dallas ($127)

        best deals in dallas 2021

        Situated Northwest of Dallas and a short drive away from the Airport this large apartment can host up to 9 guests. The house is in close proximity to the historic Bird’s Fork Park which is great if you want to go on a morning hike. The apartment comes with 1 full-sized bed, 1 king-size bed and 1 Queen sized bed, and one Air Mattress, a fully stocked kitchen, and a backyard. 

        Why is it the Best Airbnb Deal in Dallas?

        • Great Location with private Backyard
        • 60” TV with Netflix, Amazon Prime, Chromecast, HBO & Satellite
        • Pet Friendly & Self check-in
        • Free Parking
        • Super Host with 4.72 Rating

        Click Here to Book

         

        Categories
        Airbnb Investment All About Airbnb

        Best Airbnb deals in Houston (2021 Updated)

        There are a whopping 11,000 restaurants in Houston to tingle your taste buds, which is still way less when compared to the reasons why one should visit this amazing city, be it the Space Centers, Rodeo or NightLife, Houston has something for everyone, and the best way to explore Houston is to become a local, live like one and experience the lifestyle. We have curated the best Airbnb deals in Houston here so you don’t have to spend hours finding the right host and location, this list has something for everyone, from studio apartments to container homes most of which are located in prime areas.

         

        3 BedRoom – 1100 Sq Ft Montrose Apartment with Patio ($99)

        3 Bed Room Mont rose apartment Houston

        Accommodate 9 guests with 7 beds and a huge patio, for $99 this is a great apartment if you are a group of friends, or a couple looking for an amazing location to stay in Montrose, Houston. With 1 Gbps fast internet, 55” 4k TV with ESPN, HBO, Amazon, Netflix, and Hulu there will be plenty of content to keep you entertained throughout your stay. The place is Centrally Air-Conditioned with extra parking right in front of the building.

        Why is it the Best Airbnb Deal in Houston?

        • Major places like Texas Medical Center, Sports Stadium, Airports are in close proximity.
        • Pet Friendly & Self check-in
        • 2 Free Parking
        • Super Host with 4.8 ratings and 4000+ Review

        Click Here to Book

         

        Minimalist 1BR House | East Downtown ($142)

        Minimal 1 BR House East Downtown | Houston

        If you love small and minimalist houses, then this is the perfect place for you to consider on your next trip, located in Downtown Houston near the University of Houston, Bush Intercontinental Airport, and Sports Stadiums it’s hard to find a better deal than this. Apart from the great location, the house itself is very modern and doesn’t feel small from the inside at all. The blue tones inside and outside with Red Oak flooring elevates the overall aesthetic of this place and makes it perfect for modern architecture lovers.  

        Why is it the Best Airbnb Deal in Houston?

        • Major places like Texas Medical Center, Sports Stadium, Airports are in close proximity.
        • Pet Friendly & Self check-in
        • 2 Free Parking
        • Experienced Host with 4.8 Rating

        Click Here to Book

         

        Belle 2BR Bungalow | Downtown Med Center Stadium ($145)

        Belle 2 bedroom bungalow downtown Houston

        If Minimal isn’t your thing and you like to have some extra space in your house or maybe you are traveling with your friends then this 2 bedroom house which can accommodate 6 people will be a great choice for you, hosted by the same host as the above mentioned minimal apartment, here also you get 2 free parking and the house is in the vicinity of Downtown University of Houston and Rice University, major airports and sports stadiums.

        Why is it the Best Airbnb Deal in Houston?

        • 2 Free Parking
        • Pet Friendly & Self check-in
        • Experienced Host with 4.8 Rating
        • 95% of guest gave the host and property a 5-star rating
        • Major places like Texas Medical Center, Sports Stadium, Airports are in close proximity.

        Click Here to Book

         

         Casa Clare 2BR | Downtown Medical Center ($137)

        2 BR Casa Clare houston

        A perfect blend of comfort, great location and great service, this recently remodeled 2 bedrooms 1 bath located in the city center in the proximity of all the major hubs is a great place for its price. Equipped with Wifi & Smart TV to keep you entertained and beautiful Red Oak flooring and Quartz countertop makes this place feel homely and luxurious. It also has a front yard that your dog will love. 

        Why is it the Best Airbnb Deal in Houston?

        • 2 King size beds with backyard and patio
        • Major places like Texas Medical Center, Sports Stadium, Airports are in close proximity.
        • Pet Friendly & Self check-in
        • Free Parking
        • Experienced Host with 4.70 Rating

        Click Here to Book

         

        The Heart of Midtown ($75)

        The heart of mid town houston

        When it comes to location no other place can beat this property in this price range of $75, this room is just 5 mins walking distance from great midtown restaurants, the most exuberant place at night time, it’s also 5 min walking distance from the metro rail, Med center, and NRG stadium. If you are on a budget and looking to spend few nights in Houston for some conference or business then this place will be a great option and will save you some bucks as well.

        Why is it the Best Airbnb Deal in Houston?

        • Super Host with 4.91 Rating
        • Great Location
        • Budget-Friendly
        • Patio with unique entrance and design

        Click Here to Book

         

        Montrose place: The Spa | Spacious Studio  ($99)

        Montrose spacious studio Airbnb in Houston

        This recently remodeled apartment is perfect for someone who loves modern luxury and design. This is a spacious studio that can host up to 3 guests, designed by super host John this place is a modern masterpiece. Everything in this house feels like it’s supposed to be there, this house gives its guests a feeling of being comfortable and makes them feel at home. At this price, this house is a bargain because of its zen-like decor and amazing proximity to Houston nightlife.

        Why is it the Best Airbnb Deal in Houston?

        • Super Host with 4.87 Rating
        • Ample natural lighting and zen decor
        • Smart Technology to control lighting and appliances.
        • Very comfy bed with parachute linen and plush king-size mattress
        • Great Location

        Click Here to Book

         

        East Downtown Micro-Luxe Container Living Pod  ($54)

        This Container pod isn’t for your everyday traveler, it will take some time to get used to, and for people who are looking for something new and unique, this is the place for you available for just $54 in the city center. The sheer uniqueness of this place can be one reason for you to live here and experience the lifestyle of someone who lives in these metal boxes. This house is designed to give you a unique experience without compromising on comfort, this house definitely looks different but living in this won’t make you feel out of place at all. The structure is thoughtfully designed to have all the basic amenities and comforts of a regular home. 

        Why is it the Best Airbnb Deal in Houston?

        • Unique Design
        • Great Location
        • Affordable Price
        • Free Laundry
        • Super Host with 4.86 Rating

        Click Here to Book

         

        East Downtown Modern Luxury Retreat ($252)

        East downtown Airbnb in downtown

        This is the most expensive house on our list but the design, space, and architecture of this place are totally worth the dollar. The large living area with a beautiful kitchen island is a perfect place to hang out with your friends and have some drinks, as this house can accommodate up to 10 people. The 15ft high ceiling and ample natural lighting make this place vibrant and modern. Being a newly constructed loft everything here feels new and is perfect to elevate your mood every time you step into this house.    

        Why is it the Best Airbnb Deal in Houston?

        • Beautiful Design and Architecture
        • 400 MBPS fast internet and smart appliances
        • New construction
        • Private Driveway
        • Outdoor Fire Pit
        • Super Host with 4.74 Rating

        Click Here to Book

         

        Tiffany Blue Apartment ($60)
        Tiffany Blue Apartment Houston

        This cute little 320 sq ft apartment in the Montrose neighborhood is perfect for couples who are looking for a great deal in the city center, major destinations like George R. Brown convention center, Museum of Art, etc all are within walking distance, which will save you a lot of traveling time. Also, the colors and overall vibe are very pleasant and fun and for just $60 this place is a steal. 

        Why is it the Best Airbnb Deal in Houston?

        • Super host with more than 800 Ratings
        • Major attractions like NRG Stadium, Zoo, Rockets within a 5-mile radius.
        • 500 Mbps fast internet with Netflix, HBO, Amazon, and Hulu
        • Pet Friendly & Self check-in
        • Free Parking

        Click Here to Book

         

         

        Categories
        Airbnb Investment All About Airbnb

        How to invest in Airbnb property – Kuala Lumpur Malaysia

        This post was written by Wei Hong Low

        Airbnb has grown 21% compared to August 2019 earning gross revenue $4,308,726,681. More impressively, it has grown to 150 million users and a current 6,370,563 property listings across 191 countries. So far, it has been very successful for Airbnb.

        In Southeast Asia, Malaysia continues to be the fastest-growing country for Airbnb for the second year running. There is a total of 53,000 listings in Malaysia which brings in an estimated RM3 billion direct economic impact in 2018 alone. Knowing that Airbnb business is growing fast in Malaysia, there is a question keeps looming over my head.

        What is the best area to start an Airbnb business in Kuala Lumpur — the capital of Malaysia?

        Before thinking about the above question, there is another question that immediately pops up in my mind. What am I thinking about? I do not own a house yet, why am I thinking about this question? However, I still decided to google whether there are other ways and here is what I found.

        There are two ways from which you could start an Airbnb business. One is to rent out one of your own properties, the other way is to rent other people’s property to launch an Airbnb business. In other words, I do not need to own a property to start!

        If you want me to choose which way to start, I would go for the second option first. As it is more flexible, I could rent a property for a relatively short period of time compared to buying a property. The other reason is that I can have a taste of how is it like being a host in Airbnb, before buying a property just for the sake to start an Airbnb business.

        In this article, I will be discussing how I manage to obtain the data for later analysis. Without further ado, let’s start!

        Data Collection Journey

        Before I start to crawl the Airbnb website, I came across this website which seems to change my mind to do other topics. In summary, the Airbnb website actually does not keen to share the data they have. Amsterdam government tried to scrape the website weekly appeared to have been given up in scraping this website.

        Despite knowing that I will be facing a lot of issues, I still decided to try to crawl the website. Now, I am going to share some of the problems I faced when I was crawling the websites.

        The first problem I faced is the dynamically changed Xpath or CSS path. Meaning that you can’t just use one example of the Xpath, and assuming that using this Xpath on all the listing’s webpages would give you the same piece of information you want.

        Besides, the stability of the crawler is also another issue. Here are some of the ways I would suggest if you are scraping Airbnb. The most efficient way I found is to combine both rotating IPs and slowing down the crawler.

        After spending hours inspecting through the network tab, I found a path in which you would be able to access the JSON that contains neater data. Therefore, my first problem has been solved! In order to increase the stability of my crawler, I rotated IPs and slowed down my crawler. Finally, I was able to crawl data in a much stable pace.

         


         

        Data Cleaning Journey

        After collecting the data, let’s do some data cleaning.

        First, I obtained the highest price of listings which have at least one review. Let’s called this price — Price A. Moreover, I removed all the listings which are higher than Price A — outlier listings. In other words, outlier listings are listings that have a ridiculously high price but no one has ever left a comment.

        Duplicated listings were removed based on localized neighborhood, which only left around 5590 listings. Moreover, the estimated prices of properties for the top 10 listings area were collected from edgepropbrickz and propsocial.

        Data Exploration

        A good way to show the price distribution of Kuala Lumpur is to plot a choropleth. This map is segmented by the 11 federal constituencies of Kuala Lumpur. According to the figure, you can see that the northeast part of Malaysia has the highest average price while the central part of Kuala Lumpur has a fairly competitive price.

        If you are budget traveller coming to Kuala Lumpur for a vacation, I guess you know which area to stay now!

         

        Now, let’s have a bird’s-eye view of the listings distribution across Kuala Lumpur. As you can see, most of the Airbnb listings are accumulated in the city center area of Kuala Lumpur. That’s why the price of the listings are lower in the city area as supply is much higher.

        Feel free to navigate the interactive graph to have a much deeper look into a specific area in Kuala Lumpur.

        Data Analysis

         

        The figure above shows the top 20 most expensive neighborhoods. The triangle represents the number of listings while the bar represents the mean price of listings.

        What insight you could get from this graph?

        Taman Bukit Maluri, Taman Golden, and Segambut have a relatively higher price and lower listings. One of the reasons might be that there is not enough supply for that area and thus the price is higher. If you are considering to start an Airbnb business, you can do some research on that area whether the place has demand and the cost of renting or owning a house is affordable.

        Now, it is time to know the answer.

        What is the best area to invest in Kuala Lumpur?

        Let’s consider only the top 10 neighborhoods that have the most listings. Before I start to explain the calculation, let me explain some of the terms which I am going to use.

        How to calculate the Return on Investment (ROI) in the housing market?

        ROI (%) = (monthly rental * 12) / property value

        Therefore, in our Airbnb case, I use occupancy rate * fee per night * 30 to calculate the monthly rental. Besides, base on the report by AirDNA, the average occupancy rate for Kuala Lumpur is 66% from 2018–2019. Assume there are on average 30 days each month.

        Thus, the final formula looks something like this.

        ROI (%) = (fee per night * 0.66 * 30 * 12)/ property value

        The other variable I am looking for is the demand. However, if I need to get the actual number of bookings, I would need to build a larger scale of a web crawler. Therefore, for my case, I use number of reviews as a proxy to the demand.

        relation between demand and ROI among the top 10 KL neighborhood

        The best areas to invest are Kampung Baru and Chow Kit, which lie in the top right quadrant. In order words, these neighborhoods have a high ROI (%) and demand. This graph is for an investor who wants to invest in real estate to start an Airbnb business.

        On the other hand, for a person who can’t afford to buy a house, but who intends to start an Airbnb business, he or she will need to look into a slightly different metric. Instead of looking into ROI (%), he or she should be looking at airbnb expected monthly income/ monthly rental feewhich is equivalent to (fee per night * 0.66 * 30)/monthly rental fee. Here, I will define it as revenue to cost ratio.

        relationship between demand and revenue to cost ratio among

        If you do not want to own a house to start an Airbnb business, Chow Kit and Kampung Baru would be the place that you could consider.

        All the estimated rental fee and housing price I collected is from some free websites. Therefore, if you want a more accurate number, you would need to subscribe to one of the paid services, for instance, brickz. Besides, all the data above ignore the seasonality effect, as I only scraped data from 29–11–2019 to 02–12–2019.

        Final Thoughts

        Thank you so much for reading it until the end. I really appreciate it!

        What I would say is this mini-project really consumes quite some time for me, so if you do like or prefer this kind of content, do let me know in the comment below.

        Besides, the collection of Airbnb data is very time-consuming as well. However, in order to thank you for your support this year, I would like to give it out for free!

        The dataset I had collected contains a total of 71 neighborhoods in Kuala Lumpur. If you are interested to get the dataset so that you are able to play around with it, feel free to check out this link!

        This post is featured in Tech In Asia, feel free to check out over here!

        See you in the next post!



        About the Author

        Low Wei Hong is a Data Scientist at Shopee. His experiences involved more on crawling websites, creating data pipeline and also implementing machine learning models on solving business problems.

        He provides crawling services that can provide you with the accurate and cleaned data which you need. You can visit this website to view his portfolio and also to contact him for crawling services.

        You can connect with him on LinkedIn and Medium.

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