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Mashvisor Alternatives: Top STR Tools for Airbnb Investors

mashvisor alternatives

If you’re an Airbnb investor eager to expand your property portfolio, it’s essential to explore the top Mashvisor alternatives. Find out the other short-term rental analytics tools tailored for Airbnb investors:

1. Airbtics (Best Overall)
2. All The Rooms
3. AirDNA
4. Rabbu
5. Inside Airbnb

About Mashvisor

Mashvisor offers a property analytics tool that assists real estate investors in identifying profitable investment properties. It utilizes data to analyze potential deals and predict their performance in both long and short-term leasing. Currently, its data is only limited to the US, excluding other regions and countries.

Mashvisor Review

Although Mashvisor is a very good tool with a comprehensive property analysis model and a great visualization with color-coded heat maps, it still has drawbacks.

Despite the good reviews of 85% on Trustpilot,  5% of the customers on the same platform voiced out their dissatisfaction with Mashvisor . What are the things to improve?

  • Low-quality of customer support
  • Data privacy
  • Complicated dashboard
  • Inflexible subscription plan
  • Limited coverage, in US only
mashvisor alternatives

Overall, as a data analytics platform, Mashvisor should be more client-centric in this case thinking that every user experience has a huge impact on their success. Read more about the Mashvisor Review

As someone who already uses Mashvisor, I bet you are reading this to learn the alternative tools that are more promising and can fit your needs. Meanwhile, if you are new to these tools and into exploration, this article is for you as we embark on the other Top STR tools for Airbnb investors.

This article consists of:

1. The key features to look for when enhancing your Airbnb investment
2. A comprehensive review of Mashvisor competitors
3. The best alternative to Mashvisor

Key Features to Enhance Your Airbnb Investment

Expanding your property portfolio on Airbnb requires data-driven insights. Fortunately, there are reliable analytics tools that offer a wide range of useful features. As you look into these tools, keep in mind the following:

mashvisor alternatives

1. Data Accuracy and Reliability: This should be the #1 on your list. Make well-informed decisions with trustworthy data, ensuring your investment choices are based on reliable information.
2. Advanced Property Search and Analysis: Identify lucrative opportunities quickly and effectively, saving time and maximizing potential returns.
3. Vacation Rental Management Tool: Streamline your property management tasks, optimizing operations & pricing, and enhancing the overall guest experience.
4. Data Visualization: Gain visual insights into market trends and hotspots, enabling you to make data-driven decisions with ease.
5. Global Coverage: Expand your investments worldwide by choosing a tool that covers the countries where you plan to operate, unlocking new opportunities.
6. Customer Reviews: Benefit from the experiences of other users, gaining valuable insights into the tool’s performance and potential drawbacks.
7. Customer Support & Education: Receive quick assistance when needed and access educational resources to sharpen your skills and leverage the tool effectively.
8. Cost-effective Pricing: Ensure you maximize your ROI by finding an affordable plan that offers the right balance of features and value.

By prioritizing these key features, you can elevate your Airbnb investments to new heights, harnessing the power of accurate data, efficient property management, visualization tools, global reach, valuable user insights, reliable support, and cost-effective pricing. Embrace these benefits and propel your real estate ventures forward with confidence.

Comprehensive Review of Mashvisor Competitors

Now that we’ve established the importance of data-driven decision-making and introduced the top three Mashvisor alternatives, let’s go deeper into each platform’s unique features and offerings.

mashvisor alternatives

Airbtics: The #1 STR Analytics Tool for Airbnb Investors

Airbtics emerges as the frontrunner among Mashvisor alternatives. It’s the top choice among STR analytics tools due to its data accuracy, reliability, and customizable features. It offers in-depth information tailored to the Airbnb ecosystem, ranging from vacation rental income projections and occupancy rates to market trends and property performance analysis.

Why do customers prefer Airbtics?

Dynamic Map. Airbtics is able to get dynamic data updating while you move around the map in the app. The data such as the occupancy rate, nightly rate, and annual revenue is updated in real-time. This allows Airbnb investors to compare data in a specific and custom manner. 

  • Tailored Region. Unlike other tools, Airbtics permits users to “draw” the area of their preferred markets. This notable feature gives Airbnb investors a customizable experience.
  • Data Accuracy. 10 million Airbnb listings worldwide are updated every week on Airbtics to ensure we are providing accurate information to our users. Additionally, the data refresh cycle is weekly and daily for enterprise clients, making the data reliable for sudden changes.
  • User-friendly Interface. Airbtics understands that not all STR investors are proficient in data analytics tools. Our user-friendly dashboard is designed for both first-time investors and experts.
  • 5-star Customer Reviews. Don’t take our word for it. Read true success stories of our customers at Capterra where we received 5-star ratings.
mashvisor alternatives

AirDNA

AirDNA has established itself as the first STR analytics platform in the industry. It’s widely used by property owners, managers, Airbnb hosts, researchers, and market leaders. Upon checking their tool, here’s what sets them apart from the competition: Read the full review.

  • Great Data Visualization. AirDNA’s product dashboard composes of highly-visual data insights to help users analyze the data with ease.
  • Rich in features. The dashboard has several sections ranging from the market grade card, rental size, and growth. There is also a section for rentalizer where investors can get an estimate of their revenue of ROI. The last section is composed of seasonality where RevPar is computed and lead time & rates.
  • Market trends & reports. AirDNA publishes market trends and reports available to the public, which makes them a great resource about the industry’s market.

Although AirDNA has notable features which make them stand out, there are also drawbacks that came from AirDNA customers themselves:

‣ Unreliable data due to occasional updating
‣ Not all regions are available
‣ Pricing fluctuates frequently
‣ Short-term prediction isn’t possible
‣ Complex integration with other software

mashvisor alternatives

AllTheRooms

AllTheRooms is one of the pioneers in the STR industry that offers data analysis for vacation rental investors. They are a mission-oriented platform that aims to offer profound insights into the booming vacation rental market. Read the full review.

  • Comparison Tools. It’s one of the most complimented features of AllTheRooms. The tool allows easy comparison of different factors such as occupancy rates, daily rates, supply, market prices, etc. Comparing two or more items at the same time gives insightful analysis to the users.
  • Advanced Filter. Users can gain a bird’s eye view of market patterns and dive deeper into individual property analysis. The advanced filter feature refines the data based on listing types enabling accurate comparisons.

Despite the fact that AllTheRooms has helped many property managers and vacation rental investors, there is still so much to improve on their product. 67% of the customers rank them as bad; while 33% ranked the product as an excellent one.

alltherooms
Other Alternatives: Data Rabbu & Inside Airbnb

Data Rabbu is a US-specific property management service that provides valuable Airbnb data for real estate investors seeking to expand their profit of short-term and vacation rental properties. Meanwhile, the drawbacks include limited global coverage and no guarantee of rental data accuracy.

Inside Airbnb is a valuable website that provides datasets collected directly from Airbnb, benefiting local hosts, researchers, and scholars. Its public data includes information such as available listings, safe neighborhoods for hosting, estimated monthly income, average nights booked, pricing, occupancy rates, and the number of reviews. However, the free version lacks the ability to create a customized market analysis, requiring costly data requests for specific neighborhoods.

The Best Alternative to Mashvisor is Airbtics!

Choosing the right tool for property investing is a crucial point. As a property investor, you are dealing with data to make informed decisions, which makes data accuracy the #1 must-have on your checklist. Other features are secondary.

To sum up, Airbtics has by far the best alternative to Mashvisor. It touches most of Mashvisor’s limitations such as high data accuracy, quick and easy-to-reach customer support, global coverage, and highly-customizable features.

If you haven’t tried Airbtics yet, try it now with a 14-day money-back guarantee. Talk to our customer representative to answer any questions you may have.

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What is Airbnbust?

Airbnbust
Key Takeaways
  • The demand and supply forces within the Airbnb industry are ever-evolving, requiring stakeholders to be adaptable, innovative, and responsive to changing market conditions, just like the threat of an Airbnbust. By understanding and effectively managing these dynamics, hosts and guests alike can continue to benefit from the opportunities provided by the Airbnb platform.

The “Airbnbust” in Phoenix

Short-term rental property managers and Airbnb hosts in Phoenix expected a high number of guests during this year’s Super Bowl. This highly anticipated sporting event, held last February at the State Farm Stadium, was sold out as it had always been, regardless of the host city. However, for the locals engaged in the short-term rental business, the number of bookings in their Airbnb listings was rather disappointing. 

This led people to resurrect “Airbnbust” as a dreadful ghost delivering a warning that Airbnb’s glorious days are numbered. A term that gained traction on social media in late 2022, Airbnbust or Airbnb bust is a phenomenon of rising vacancies or decreasing occupancy rates in Airbnb due to the growing number of new listings. Understandably, this is a grave concern for a lot of people involved in the short-term rental industry.

Airbnb Data on the Two Super Bowls

Let’s compare the two Super Bowls to put things into perspective. According to Airbtics’ Granular Data, the Airbnb average occupancy rate in Los Angeles on the day of the 2022 Super Bowl was 28.4%. This rate was 1.4% higher than the 27% average February occupancy rate in the city. The January 2022 occupancy rate in Los Angeles was 23%.

On the other hand, Phoenix had a 21.6% average occupancy rate during the 2023 Super Bowl, and the average monthly occupancy rate in February 2023 in the city was 23%. This was around 5% lower than the previous year’s occupancy rate for the Super Bowl in Los Angeles. However, we should also take note that the February average occupancy rate in Phoenix still increased by 5% from 18% in January 2023.  We can clearly see that there was already a month-on-month increase during the two Super Bowls.

Airbnbust

It is also interesting to know the booking lead time or the interval between the booking and check-in dates. The average booking lead time for last year’s event was 15 days, and 42 days for this year’s Super Bowl. This means that Airbnb guests made their bookings longer or around one and a half months in advance before the 2023 Super Bowl in Phoenix compared to last year’s Super Bowl in Los Angeles.

While the Airbnb occupancy rate for this year’s Super Bowl in Phoenix was not as high as last year’s indicator in Los Angeles, the Phoenix Airbnb monthly occupancy rate still increased by 5% in February 2023. Phoenix’s booking lead time also looked more favorable compared to Los Angeles. But if there was indeed such an increase, how come it did not make a strong impression on short-term rental managers and Airbnb hosts?

Airbnb Demand and Supply

In January of this year, Phoenix had 39,470 Airbnb bookings. But during the month of the 2023 Super Bowl, the bookings made were 83,720. While it was evident that the number of bookings significantly increased, so did the number of nights available – from 71,309 to 123,891. 

Airbnbust
Airbnb Demand and Supply in Phoenix

Airbnb connects hosts with guests. Hosts are the people in business to rent out their properties, while guests are the ones in need of accommodations. In the context of short-term rentals, demand represents the number of bookings made by people seeking accommodation on the platform. On the other hand, supply is the number of available nights listed by hosts. 

Short-Term Rental Bust

When there is an oversupply of available short-term rental properties, hosts may face more competition that potentially forces them to lower their nightly rates. This happened in Phoenix which led a lot of Airbnb hosts and short-term rental managers in the city to lower their nightly rate to boost their Airbnb occupancy during the 2023 Super Bowl. 

Airbnbust
Average Daily Rate on the 2023 Super Bowl

A local property manager in Phoenix even dropped the nightly rate from $1,200 to $500 for an unbooked prime 3-bedroom unit. But in my opinion, the nightly rate just fell below their expectations. Based on data from Airbtics, most hosts with booked properties were still able to gain profits and charge an average nightly rate of $178, or $33 more than the annual average nightly rate of $145. Some were even able to charge up to $623 per night. However, their concern was understandable due to the magnitude of the event which was expected to make a huge profit.

Airbnbust

It is also worth noting that there are no restrictions on the number of Airbnb listings in Phoenix, which created an oversupply that led to an Airbnbust. There is also rental arbitrage, which allows people to profit from Airbnb without actually owning the rental property. Should we put the blame on the lenient regulations for this short-term rental bust? This is very different from the cities that have imposed strict Airbnb regulations that limit the number of listings. 

In New Orleans, for example, the city put a pause on new short-term rental listing applications in October last year. Existing hosts earned an average nightly rate of $173.75 during the moratorium period. But when the city started accepting new listing applications in February, the average nightly rate rose to $211. February was also the start of the peak season in New Orleans. So more people started visiting the city when additional Airbnb units were allowed to operate. However, the city allows only 1 Airbnb listing per square block.

Airbnbust
Airbnb Demand and Supply in New Orleans

Demand for Airbnb accommodations is driven by travelers and visitors who prefer the flexibility, cost-effectiveness, and unique experiences offered by staying in someone’s home or property. Factors that impact demand include travel trends, tourist attractions, events, seasonality, and affordability compared to traditional hotels.

But when demand surpasses or gets closer to the supply, guests may experience limited availability and potentially higher prices due to increased competition among travelers.  In Honolulu where there is a stable supply that adjusts to the changing Airbnb local demand, the average annual revenue of an Airbnb property is $56,452 from the average nightly rate of $170.

metrics
Airbnb Demand and Supply in Honolulu

In January when the supply had stayed relatively the same since April, most Airbnb hosts were able to charge from $169 up to $415. But when the demand rose in February, the average nightly rate stayed relatively the same because supply kept up with the demand with the increase in additional nights available.

metrics
Average Daily Rate in Honolulu
metrics
Average Daily Rate in Honolulu

It is important to understand Airbnb demand and supply. With limited available listings, Airbnb hosts can definitely increase their nightly rate.  On the other hand, an oversupply of Airbnb listings in a particular area can lead to competitive pricing. Hosts may lower their prices to attract guests and secure bookings, especially if they face competition from other hosts.

Conclusion

As we have learned, the short-term rental bust can be simplified into the dynamics of supply and demand. Airbnbust happens only in specific markets where there is an oversupply of listings. It does not encompass the entire short-term rental industry, which, as some fear, may result in an Airbnb collapse.

The rise of Airbnb has long disrupted the traditional hospitality sector, offering a platform that allows individuals to monetize their properties and travelers to find unique and affordable accommodations. 

The demand for Airbnb listings has been driven by various factors such as saving money and increased flexibility compared to the traditional hospitality sector. On the supply side, property owners have been attracted to the opportunity to generate income and maximize the utilization of their assets.

To navigate these evolving dynamics, hosts and property owners must stay attuned to market trends, employ effective marketing strategies, and continuously enhance the quality and uniqueness of their offerings. Leveraging data analytics and technology can help optimize pricing, improve guest satisfaction, and ensure a steady stream of bookings.

The future of the Airbnb industry will also be shaped by regulatory developments and the company’s response to stakeholder concerns. Collaboration between Airbnb, hosts, and local authorities is essential to strike a balance that allows for responsible growth and ensures a positive impact on local communities. Should we allow more Airbnb listings per city, or should we put a limit on them? This is still an ongoing discussion that requires all concerned parties to participate.

Overall, the demand and supply forces within the Airbnb industry are ever-evolving, requiring stakeholders to be adaptable, innovative, and responsive to changing market conditions – just like the threat of an Airbnbust. By understanding and effectively managing these dynamics, hosts and guests alike can continue to benefit from the opportunities provided by the Airbnb platform.

Stay ahead of the competition in any market with Airbtics Granular Data

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Top Events and Airbnb Occupancy Rate in Toronto

Airbnb occupancy rate in toronto

Airbnb occupancy rate in toronto

Key Takeaways
  • Enhance your Toronto Airbnb hosting experience by leveraging the insights on Airbnb occupancy rate in Toronto! By understanding the average daily rate and booking lead times for major Toronto events, you can align your pricing strategy to attract more guests, increase Airbnb occupancy rate, and maximize your profitability.

Introduction

Toronto, Ontario, Canada is renowned for its vibrant tapestry of culture, cuisines, and traditions. The city’s multiculturalism and diversity are evident in the array of events Toronto offers throughout the year. Toronto is also a major economic hub, attracting businesses and industries from around the world. The city’s event calendar is filled with an abundance of options that residents and tourists alike can immerse themselves in the cultural fabric of Toronto.

In this blog post, we delve into Airbnb occupancy rate in Toronto, Airbnb pricing strategy, and essential insights on Toronto events to help hosts stand out in the highly competitive short-term rental market.

Is the Airbnb business profitable in Toronto?

A Toronto Airbnb business is definitely profitable! Earn C$42,618 in annual revenue with a 50% occupancy rate for 1-bedroom rentals. With an average booking lead time of 40 days and an average daily rate of C$117, your property is set to thrive in the bustling Toronto short-term rental scene.

Toronto’s lively cultural scene, major events, and diverse attractions attract a steady stream of tourists throughout the year. By capitalizing on this demand, Airbnb hosts have the potential to earn said substantial revenue. Hosts can strategically plan their pricing by considering factors such as the average booking lead time of 40 days and the average daily rate of C$117.

With the city’s vibrant and diverse atmosphere, combined with these enticing figures, we sure get the appeal. Hosting an Airbnb in Toronto is an irresistible venture and provides promising financial prospects for those seeking financial successes in the short-term rental market. 

If you plan to be a host in the city, familiarize yourself with the essential Airbnb rules in Toronto to ensure a smooth and compliant hosting experience. Discover the potential of rental arbitrage to overcome capital constraints and profit from the price difference between leasing a property and subleasing it on a platform, unlocking new opportunities for passive income generation.

Toronto Events Airbnb Hosts Should Take Not Of

As an Airbnb host, staying informed about these Toronto events is crucial for refining your Airbnb pricing strategy and maximizing your earning. In this comprehensive guide, we highlight the top Toronto events that every Airbnb host should take note of.

Discover how aligning your pricing with these events can attract more guests, increase airbnb occupancy rate in Toronto, and ultimately boost your profitability. From film and music festivals to comics and gaming events, these insights from our historical data will empower you to optimize your Airbnb pricing strategy and stay ahead of the competition.

1. Toronto International Film Festival
  • Attendees: 250, 000+
  • Where: TIFF Bell Lightbox, Downtown Toronto
  • When: September 9 – September 18, 2022
    • Occupancy Rate: 19.75%
    • Average Daily Rate: C$116.84
    • Booking Lead: 58 days

The Toronto International Film Festival (TIFF) evidently takes the spotlight as a major event that significantly impacts Airbnb occupancy rate in Toronto. With over 250,000 attendees, TIFF attracts a massive influx of visitors to Downtown Toronto, particularly around the TIFF Bell Lightbox venue. 

As an Airbnb host, this event presents an incredible opportunity to capitalize on the surge in demand. It’s crucial to plan ahead as the booking lead time for TIFF is around 58 days, allowing hosts to strategically set their pricing and optimize their listing to attract festival attendees seeking accommodations.

2. Fan Expo Toronto
  • Attendees: 140, 000+
  • Where: Metro Toronto Convention Centre
  • When: August 25 – 28, 2022
    • Occupancy Rate: 21.98%
    • Average Daily Rate: C$121.62
    • Booking Lead: 65 days

Fan Expo Toronto also emerges as a prominent event with a significant impact on Airbnb occupancy rate in Toronto. Drawing in more than 140,000 enthusiastic attendees, this event takes place at the Metro Toronto Convention Centre. 

Hosts can leverage this surge in demand to secure bookings and generate higher revenue. The average daily rate for Airbnb listings during Fan Expo Toronto is approximately C$121.62, offering hosts the potential for profitable returns. 

3. Toronto Comic Con
  • Attendees: 130, 000+
  • Where: Metro Toronto Convention Centre
  • When: March 18 – March 20, 2022
    • Occupancy Rate: 21.97%
    • Average Daily Rate: C$91.83
    • Booking Lead: 23 days

As an Airbnb host in Toronto, knowing about the high occupancy rate and demand during events like Toronto Comic Con can help you optimize your hosting strategy. With over 130,000 attendees, Toronto Comic Con brings a significant influx of visitors to the Metro Toronto Convention Centre. With an occupancy rate of 21.97%, this event presents a prime opportunity to attract guests and maximize your bookings. 

4. OktoberFest Toronto
  • Attendees: 40, 000
  • Where: Ontario Place, Lakeshore Blvd
  • When: September 30 – October 2, 2022
    • Occupancy Rate: 20.9%
    • Average Daily Rate: C$121.62
    • Booking Lead: 52 days

OktoberFest Toronto draws in 40,000 attendees, creating a surge in visitors at Ontario Place on Lakeshore Blvd. This event takes place from September 30 to October 2, 2022, with an occupancy rate of 20.9%. 

Armed with this valuable information, you can strategically adjust your pricing and availability to make the most of the increased demand during this period. 

5. Santa Claus Parade Toronto
  • Attendees: 500, 000
  • Where: Christie Prits along Bloor Street West to Front Street West
  • When: November 2, 2022
    • Occupancy Rate: 17.2%
    • Average Daily Rate: C$107.39
    • Booking Lead: 56 days

With a staggering 500,000 attendees, the Santa Claus Parade in Toronto is a massive one-day event that spans along Bloor Street West to Front Street West, attracting a significant influx of visitors. Taking place on November 2, 2022, the Santa Claus Parade exhibits an occupancy rate of 17.2%. 

Armed with this knowledge, you can strategically adjust your pricing and availability to capitalize on the increased demand during this festive period. Setting your average daily rate around C$107.39 enables you to offer competitive pricing and potentially generate higher revenue from your Airbnb listing. 

Given the 56-day booking lead time, it is crucial to plan ahead and optimize your listing, emphasizing its proximity to the parade route and creating a warm and inviting atmosphere to entice Santa Claus Parade attendees seeking convenient accommodations. 

Conclusion

It is evident that Toronto provides abundant opportunities for maximizing your Airbnb hosting experience, with the knowledge of key factors such as the Airbnb occupancy rate in Toronto. By leveraging the insights provided, including occupancy rate, average daily rate, and booking lead times for major Toronto events, you can fine-tune your Airbnb pricing strategy to attract more guests and boost your profitability.

Understanding the occupancy rate allows hosts to gauge the demand for accommodations during specific events or periods in Toronto. By identifying peak occupancy periods, hosts can adjust their pricing accordingly to capitalize on the increased demand and maximize their booking potential.

Being aware of the daily rate prevalent during these events will also provide hosts with a benchmark for setting competitive prices that appeal to potential guests while still ensuring profitability. Indeed, by staying proactive in adjusting their pricing strategy for Airbnb occupancy rate in Toronto based on the provided insights, hosts can position themselves for success. 

Whether it’s the prestigious Toronto International Film Festival, the exhilarating Fan Expo Toronto, or the festive OktoberFest Toronto, aligning your pricing with these events can make a significant impact on your Airbnb business. Stay ahead of the competition, optimize your earnings, and enjoy success in the vibrant world of Toronto vacation rentals.

Ensure accurate pricing for your STR unit by utilizing Airbnb Profit Calculator, a user-friendly tool, allowing you to determine if you are setting the right price!

Explore The Most Profitable Airbnb Locations in Toronto, Canada

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What is the Best Number of Bedrooms for Airbnb?

Best Number of Bedrooms for Airbnb

Best Number of Bedrooms for Airbnb

Key Takeaways
  • There really is no specific figure on the best number of bedrooms for Airbnb. In this article, you will learn that this figure varies depending on location. All you need is the right tools to analyze the data on your prospective Airbnb market to help you find the best property that will maximize your profit and speed up your journey toward financial independence.

Introduction

Aside from location, the best number of bedrooms for Airbnb is also a major factor in real estate investing, as this can also maximize the revenue potential of your investment property. In this blog post, we’ll use accessible short-term rental analytics to answer the question on every investor’s mind, “What is the best number of bedrooms for Airbnb?”

So, whether you’re a seasoned investor looking to expand your portfolio or a newcomer eager to capitalize on the sharing economy, read on to discover the insights that will help you maximize your returns on your prospective Airbnb property!

What qualifies as a bedroom on Airbnb?

An Airbnb bedroom should typically be a private space within your listing that offers sleeping accommodations. It should have walls, a door, and a window for ventilation and natural light. In terms of size, it should be large enough to accommodate a bed comfortably, with ample space for guests to move around.

Best Number of Bedrooms for Airbnb

To meet Airbnb bedroom requirements, it should feature a real bed, such as a standard double or queen-sized mattress, or a larger alternative like a king-sized bed. Air mattresses or sofa beds, while potentially suitable for extra guests, generally do not count as qualifying beds for an Airbnb bedroom.

Additionally, the bedroom should provide basic furniture and amenities essential for a guest’s comfort and convenience. This includes items like nightstands, lamps, storage space (such as a closet or dresser), and privacy-enhancing features like curtains or blinds.

Importantly, a bedroom should not be a shared space, such as a living room, dining area, or any other common area within your property. While you may offer these spaces to guests, they should be clearly differentiated from a designated bedroom.

How many bedrooms are best for Airbnb?

Surprisingly, there really isn’t a magic number. However, people who try to answer this would often advise you to go for a property with the most number of bedrooms if your target is to maximize income. Their reasoning is the said property size can accommodate more guests whom you can charge more per night. It may be true that you can maximize income because of a higher nightly rate, but the fact that guests do not often book a 6-bedroom property may astound you.

Best Number of Bedrooms for Airbnb

But people still try to give a definite answer and give the exact best number of bedrooms for Airbnb. They say that it is around 3, but this number is just an average within a market. 

While averaging the best number of bedrooms for Airbnb already gives us an idea, the tricky part is the size of the market which they get the average from. Is it the average per state or country? If this is the case, perhaps the short-term rental market is too big to give investors the best number of Airbnb bedrooms and guide them closer to buying the investment property that will give them the highest return. 

This is why an intelligent investor should consider the gross rental yield as it is one of the financial metrics used to assess the return on investment (ROI) of a rental property. This helps you measure the property’s income-generating capacity in relation to its purchase price. 

In the next section, you will learn how to find an Airbnb investment property using gross rental yield to have an idea of the best number of bedrooms for your next Airbnb market.

How To Find the Best Number of Bedrooms for Airbnb in Your Market?

Finding Airbnb properties requires a lot of research. But in most cases, Airbnb investors already have a prospective Airbnb market in mind. Be it a beach or shopping destination, they already have a picture of the kind of guests they want to accommodate. The next step for them is to research and get Airbnb data on that short-term rental market. 

(For first-time investors who still do not have a specific Airbnb Market in mind, read on because this research method can also help you!)

Airbtics’ Discovery Tool answers 2 questions very important to investors, “Where should I invest in?” and “What is the best number of bedrooms for Airbnb in that market?” Airbtics’ Discovery Tool is so easy to use. Simply type in your prospective short-term rental market, and you will instantly see how profitable that market is! Let’s take the Orlando Airbnb market as an example.

Best Number of Bedrooms for Airbnb

According to Airbtics Dashboard, a 2-bedroom Airbnb unit has an average annual revenue of $45,015 while a 1-bedroom unit has $32,656. However, a 1-bedroom Airbnb unit in Orlando is a more valuable investment in terms of gross rental yield (although marginally) compared to a 2-bedroom unit.

The Discovery Tool also shows Airbnb data in nearby cities. And as you can see, fewer bedrooms have higher gross rental yields in Cocoa Beach and Cape Canaveral. This feature of the Discovery Tool presents wider investment opportunities to investors and can make them want to reconsider their prospective Airbnb market.

But “fewer bedrooms give higher gross rental yields” is not always the case. If you check Jacksonville, you can see that the higher the number of bedrooms, the higher its gross rental yields and annual revenue! This is why it’s really important to check the data on your Airbnb market before buying a multi-million dollar investment property. 

Best Number of Bedrooms for Airbnb

We’ll also offer you a more detailed way to see the best number of bedrooms in a very specific Airbnb market. 

Let’s say that you’re planning to buy a property in West Seattle where you dream to retire in the future. But in the meantime, you want to make it a worthwhile investment that will give you a stable income and simultaneously give you a faster return (measured by gross rental yield). You have narrowed down your options, and now you have to choose between this 2-bedroom property worth $634,950 and this 3-bedroom property worth $927,999.

Best Number of Bedrooms for Airbnb

With access to the right data, you can simulate the ROI of your prospective property investment by customizing an Airbnb market. It gives you an Airbnb dataset specific to your target market. Let’s now mirror the Airbnb West Seattle market using the Airbtics Dashboard.

airbtics

West Seattle currently has 79 active Airbnb listings that have an average occupancy rate of 78% and charge an average nightly rate of $195. The average annual revenue in this Airbnb market is $56,769.

You can now answer the question of which of the two properties you will buy: the 2-bedroom property worth $634,950 or the 3-bedroom property worth $927,999. By using the advanced filters you can know the financial performance of a property size. And from there, you can determine the best size of house for Airbnb in a specific market.

airbtics

Both property sizes are profitable (and interestingly, the 2-bedroom property in West Seattle Airbnb Market can give a higher annual revenue). Let’s now use one of the industry-standard methods of getting the gross renting yields.

Gross rental yield

In this research, we have learned that a 2-bedroom property in West Seattle is a more worthwhile investment. It has an average revenue of $83,476 ($1,683 more than that of a 3-bedroom property). This property size even has a 4.33% higher gross rental yield, which is another performance indicator of property investment. 

Our hypothetical investor is now really glad! He has already found the investment property that meets his criteria: a stable passive income and a faster return on investment. It has solved the problem of which of his prospective properties in West Seattle is more worth spending his hard-earned money on, the 2-bedroom or 3-bedroom unit!

Conclusion 

In this article, we have learned that we cannot really put a figure on the best number of bedrooms for Airbnb. As we have seen, the wisdom that “more rooms, more revenue” is only true because you can charge a much higher nightly rate. However, it might take you longer to get your return on investment of that bigger property worth at least $ 1 million. At the same time, we cannot also rely on a “less is more” mindset. As we have seen in Jacksonville, the annual revenue and gross rental yield increase with the number of bedrooms.

How to find Airbnb properties is a challenging question to answer, but Airbnb investors will just have to analyze the data on their prospective market. This article aims to give them a hand with how to use short-term rental analytics when looking for their next rental property. 

If you have a property in mind, try this comprehensive and accessible Airbnb Profit Calculator and see how much you gain from your prospective property investment.

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How to Use Property Management Software to Find the Best Tenants

how to use property management software

how to use property management software

KEY TAKEAWAYS
  • If you’re a landlord or property manager looking to maximize your rental’s potential, property management software could be the solution you’re looking for. By utilizing property management software to its full potential, you can find the ideal tenants for a short-or-long-term rental.

Introduction

Finding quality tenants is a top priority for landlords and property managers, and for good reason. A good tenant is worth finding and keeping and will maintain the value of the property. 

A great way to simplify and improve the tenant screening process is by using software. With its features and tools, rental or property management software can help streamline communication, automate administrative tasks, and even aid in marketing efforts to attract quality tenants. 

In this article, we’ll cover five tips on how to use property management software to find the best short and long-term tenants for your Airbnb. By implementing these tips, you can save time and resources, make informed decisions when choosing tenants, and create a more efficient rental management process.

What Makes A Good Tenant?

A good tenant is someone who demonstrates responsible and reliable behavior in their role as a renter. They have a history of making timely rental payments, taking care of the property, and adhering to the terms of the lease agreement. 

You should be expecting a relationship with your tenant in which there’s transparency regarding information from both sides. As a tenant wouldn’t want leaks and breakages hidden from them prior to signing a lease, so the landlord should expect honesty with regard to credit score, owning pets, and any other influencing factors. 

Luckily, property management software makes this far easier to navigate. Read on to see how you can streamline your experience using technology.

1. Use Screening Tools to Evaluate Tenant Applications

Property management software can provide valuable screening tools to evaluate tenant applications, such as credit checks, background checks, and rental history. By using these tools, you can quickly and easily identify good tenants and avoid renting to tenants who may cause issues.

Property management software has access to information that would be difficult to access on your own. This data is instrumental in calculating the risks and rewards each potential lessee would bring to the agreement. Using screening tools is probably the number one reason to use property management software.  

2. Offer Online Applications

Online applications are a great way to streamline the tenant screening process. Property management software can enable you to offer online applications, This can make it easier for potential tenants to apply and for you to manage the application process. By offering online applications, you can reduce errors and speed up the approval process.

It’s also easier to then compare potential tenants side by side and easily see who’d be the best fit for your space. Additionally, this is a clever way to manage small commercial properties where different businesses will have different ways of operating within a space. A salon will bring in foot traffic, while a small joinery business will be quieter but could damage the property. Being able to compare these factors is instrumental in making the right decision. 

3. Automate Tenant Communication

Effective communication is crucial for building good relationships with tenants. Property management software can automate tenant communication, such as lease renewals, rent reminders, and maintenance requests. This can help you to stay organized, save time, and provide a better tenant experience.

It’s important, however, to monitor these communications so that you know when to step in and offer a clearer explanation or take the time to introduce yourself. Feeling like their queries are being answered quickly and properly will attract higher quality, and therefore more serious, applicants. 

4. Use Marketing Tools to Attract Quality Tenants

Property management software can provide marketing tools to help you attract quality tenants. For example, you can use listing syndication to post your rental property on multiple listing sites, use social media to reach potential tenants, and create virtual tours to showcase your properties using a real estate website builder. 

By using these tools, you can attract better tenants and reduce vacancies.

As with the above tip, it’s important that the marketing done on your behalf is a true reflection of what you’re offering. You want to put your best foot forward, especially in these uncertain times where markets are fluctuating. If you’re using good software, these adverts should be highly customizable and shouldn’t increase your spending by a huge margin. Do your research and be sure to use reliable software. 

5. Track Tenant Data to Identify Trends

Property management software can help you track tenant data and identify trends, such as tenant turnover rates, late rent payments, and maintenance requests. By analyzing this data, you can identify areas for improvement and take proactive steps to improve your property management operations. For example, you may identify that maintenance requests are taking too long to complete. If this is the case, you can then adjust your processes to improve response times and tenant satisfaction.

Conversely, tracking tenant data can help you to realize which tenants need more attention than others. Someone who never complains might be complacent with their rental and let problems build up until the end of their lease, which brings conflict and incurs costs. A tenant that complains constantly might be someone who’ll shift their responsibilities as a renter into your hands as the property manager or landlord. 

A Technological Advantage In The Property World

Using property management software to find the best tenants for an Airbnb is a smart move for landlords and property managers. By leveraging the screening tools, online applications, automated communication, marketing features, and data tracking capabilities that come with property management software, you can make the tenant screening process easier and more effective. 

By attracting good tenants, you can reduce vacancies, improve tenant satisfaction, and increase rental income. Additionally, by automating administrative tasks and communication, you can free up time to focus on other important aspects of your rental management business. Overall, implementing these tips can help you find the best tenants for your properties and improve your rental management operations.

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How to Create a Property Management Apps For Real Estate

management apps for real estate

management apps for real estate

Millennials and later generations are more likely to book appointments, shop, rent, or even buy property online rather than in-person. This means that companies who want to stay in the game must embrace the shift by investing in technology – custom real estate software being a great example of this. Custom property management software is changing the real estate landscape and enabling businesses to keep up with the shifting habits of modern customers. Such a tool can help maximize efficiency while providing clients with tailored services. But what is it, exactly? How can one adopt such technology successfully? These are all important questions worth exploring – but let’s start with understanding the basics first: what is custom real estate software?

management apps for real estate
Source: mobindustry.net

What is Custom Property Management System?

Property management automation software is the key tool used by property managers to maximize operational efficiency and increase their return on investment. Its primary purpose is to automate essential and repetitive processes, such as communication between landlords and tenants, hotel reservations, customer service, and more. This streamlines the process of managing consumer relations and provides better support for any inquiries that arise. Moreover, it eliminates the need for manual data entry thereby decreasing the chances of errors, increasing accuracy, and saving time. 

Using property management automation software helps real estate professionals stay up-to-date with today’s market trends. For instance, cloud-based solutions offer flexibility when it comes to storage capacity, data collection capabilities, analytics for strategic decision-making, as well as comprehensive reporting, and online bookkeeping options. Additionally, there is huge potential for advanced predictive analytics to provide personalized recommendations that match different users’ needs more accurately than ever before. This can take the form of providing a list of optimized rental opportunities based on risk models or predicting future maintenance needs based on historical data.

2 Ways to Create a Property Management System

The choice is between manually creating big, commercial, rental, or small property management software or using SaaS products. More details are below.

Custom Development

Custom development is a useful solution for businesses that deal with multiple properties on a regular basis. It allows them to have a custom-built system that is tailored to their needs, making the management of the properties simpler and smoother. Companies can add any features, including tools such as Stripe and PayPal for payment processing, an easy API integration process, and a custom UX design. Custom development provides unparalleled quality and reliability in rental property management software. However, companies are highly dependent on the development team, which can either take them to a new level or let them down. If I opened a new project, I would contact Jatapp.co, as they have a positive experience of cooperation. While there are many decent developers out there, it’s usually best to work with trusted companies that have a good reputation in the market.

SaaS

SaaS is the perfect solution for property managers who are just starting out in the business or dealing with a relatively small portfolio. Rather than having to build an entire software from scratch and incur hefty upfront costs, SaaS offers a ready-made solution with a much more affordable monthly fee. By taking advantage of SaaS solutions, busy property managers can quickly and easily access all the features they need to keep their operations running smoothly. Plus, SaaS makes it easy to access up-to-date features, so you never have to worry about missing out on the latest developments. With SaaS, staying ahead of the competition is simple!

Guide to Develop Property Management Software

Whether you have hired a development team or ordered a property management software development service, you need to be prepared to go through the following stages. We have collected general information about the stages here.

Determine Software Type

When deciding on what type of property management software you need, it’s important to first consider what type of property management you will be doing. Residential and commercial property management requires different software solutions. Residential systems are catered for the management of houses and flats, tracking payments and occupancy, arranging maintenance, etc. For example, rental property management software will be different from commercial real estate software. Commercial systems are tailored for larger business properties such as retail facilities and business premises, providing tools for accounting, maintenance, marketing, and more. So when deciding on a PMS solution, evaluate your needs in order to choose the best one for your business.

management apps for real estate
Source: wondershare.com
Determine the Main Features

Lease tracking, tenant screening, online payments, accounting, virtual tours, and contract management are all prime features of modern CRM systems. These features provide property managers and landlords with increased functionality to collect rent payments more efficiently, keep better track of their finances, provide potential tenants with a virtual tour experience, and manage contracts digitally.

Selection of a Reliable Supplier

Additionally, prioritize the values of the vendor. Their mission and vision should be in alignment with your own, to ensure that you can make a long-term relationship that is beneficial for both parties. Furthermore, look into the technical capabilities of the company. Do they have sufficient experience? Are they flexible to incorporate any changes you may make along the way? All of these questions are key considerations when selecting a reliable vendor for your property management software project.

Working Out Key Details

Apart from scalability and cloud-based solutions, it is essential to consider other crucial details such as pricing, features, and analytics. Pricing should be set according to the value you want to provide; features should include an intuitive interface and many customization options; and analytics should show data related to users’ behavior —this information can help you make well-informed decisions towards better management of rent portfolios. The right combination of these details will give a much-needed edge over competitors in the market.

Conclusion

Developing property management software is an important step for any business that wants to give its clients the best possible service. Knowing what type of PMS you need, understanding the features, and choosing a reliable supplier are essential steps in developing your software. Together with the right development team, creating quality property management software is a very real task.

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Airbnb Price Optimization with Airbnb Historical Data

Airbnb Price Optimization

Airbnb Price Optimization

Key Takeaways
  • By analyzing your Airbnb average daily rate and occupancy rate, you can calculate your RevPAR and use it to make informed pricing decisions. Utilizing short-term rental analytics with granular data and understanding market demand can help you adjust your prices in real-time and stay competitive in your area.

Introduction

Are you an Airbnb host who is not satisfied with your rental income and think you can earn more? Or just new to Airbnb and want to know how to measure the financial performance of your property? Then understanding the occupancy rate and the daily rate is key to achieving your revenue goals. 

To start off, the daily rate is simply the amount you charge per night. On the hand, occupancy rate refers to the percentage of time your property is booked. If your Airbnb occupancy rate is 50%, it means that your property is booked for half the year.

In this blog, we will explore the relationship between occupancy rate and daily rate, as well as share tips and strategies for Airbnb hosts having difficulty with their pricing to improve their Airbnb rental income. 

What is RevPAR in Airbnb?

RevPAR, or revenue per available room, provides an overall picture of how well your rental property is performing financially. Calculated by multiplying the Airbnb occupancy rate by the daily rate, RevPAR is a critical metric for Airbnb hosts to monitor.

Airbnb Price Optimization

The relationship between the occupancy rate and the daily rate is crucial for maximizing RevPAR. There’s actually an inverse relationship between the two. If your occupancy rate is high but your daily rate is low, you may be leaving money on the table. On the other hand, if your Airbnb nightly rate is high but your occupancy rate is low, you may struggle to attract enough bookings to generate substantial revenue.

Airbnb Price Optimization

What does booking lead time mean on Airbnb?

Booking lead time refers to the number of days between when a guest makes a booking and the actual check-in date. It is another important factor that Airbnb hosts need to check when optimizing occupancy rate and daily rate. The ideal booking lead time for Airbnb hosts can vary depending on several factors, such as the location, the time of year, and the type of accommodation being offered. In other words, it mainly depends on the market.

A longer lead time means that guests are booking further in advance. This can provide more stability in your bookings and revenue. Guests tend to book further in advance for high-demand times of the year, such as holidays or popular local events. This means that if you have a longer lead time, you may be able to charge higher rates for these peak periods and secure more bookings in advance.

In contrast, a shorter lead time means that guests are booking closer to their travel dates, which can be both positive and negative for your revenue. On one hand, shorter booking lead times can lead to higher nightly rates, as guests are willing to pay a premium for last-minute availability. On the other hand, shorter lead times can also mean that your property is not consistently booked, which can result in periods of low occupancy and decreased revenue.

How Do You Maximize Revenue with Airbnb Historical Data

To optimize RevPAR, Airbnb hosts need to find the sweet spot where the occupancy rate and daily rate are balanced. This requires a deep understanding of your property’s unique market, as well as ongoing monitoring and adjustment of your pricing strategy. By analyzing booking data and market trends, you can adjust your daily rate to attract more guests during low occupancy periods, and raise your prices during high demand periods.

Airbnb Price Optimization

Let’s take Coachella in California as an example. Airbnb hosts charge an average of $687 per night and earn an average annual revenue of $42,929 with a 20% occupancy rate. But more than the said metrics above, you can see data on the granular level. From the graph below, we can see that this week in September 2022 was a very lean time with only 6% occupancy rate. 

Airbnb Price Optimization
Airbnb Price Optimization

Interestingly, bookings were made more than 2 weeks in advance. How did hosts cope with the very low occupancy rate? Of course, by setting a competitive nightly rate! But here’s the next question, how much can you lower your nightly rate? You can answer this by checking the market.

Historical data

You can see that there were still rooms charged from $710 per night. Remember that bookings were made more than two weeks prior. This gives Airbnb guests more than enough time to look for the cheapest available rooms. With the help of granular data, you can see that other Airbnb hosts were willing to go down to $234 – which had a very high chance of getting booked compared to the rooms with more than three times its price.  

Then let’s see how much Airbnb hosts in Coachella can earn during peak season. Every April for two weeks, the Coachella Valley Music and Arts Festival happens. Then let’s see the booking pattern of Airbnb guests at the height of this event.

Historical data

Based on the graphs above, we can see that music lovers were looking forward to this event. On average, guests booked around 50 days in advance. It’s also interesting to see that some guests booked more than 2 months before the event. The last-minute bookings were 32 days in advance and not really last-minute at all – it’s still more than a month. This allowed Airbnb hosts to charge a much higher nightly rate, averaging $842. This is $155 more than the average nightly rate all year round. 

Historical data

Conclusion

Optimizing your Airbnb pricing using RevPAR can be an effective strategy to increase your profits as a host. By analyzing your Airbnb average daily rate and occupancy rate, you can calculate your RevPAR and use it to make informed pricing decisions. Utilizing short-term rental analytics and understanding market demand can help you adjust your prices in real-time and stay competitive in your area.

Remember that pricing is just one aspect of running a successful Airbnb business. Providing exceptional hospitality, maintaining a clean and comfortable space, and responding promptly to guests’ needs are all crucial factors that contribute to a positive guest experience and ultimately, your success as a host. By incorporating RevPAR analysis into your overall hosting strategy, you can make data-driven decisions that will help you maximize your earnings while delivering an exceptional guest experience.

Wanna know if you’re leaving money on the table? Then check out this comprehensive and accessible Airbnb Profit Calculator!

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Short Term Rental vs Long Term Rental in Australia

Short Term Rental vs Long Term Rental in Australia

Short Term Rental vs Long Term Rental in Australia

Key Takeaways
  • If you’re a traditional landlord in Australia looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

If you’re a rental property owner in Australia, the upcoming 2023 recession may have led you to reconsider your investment strategy. However, rest assured that we’re here to assist you in navigating these uncertain times.

Regardless of whether you possess short-term or long-term rental properties, this article can offer you valuable advice on how to make well-informed investment choices. We believe that economic data should not only be available to analysts but also to property owners. By utilizing user-friendly data analytics, you can optimize your real estate investments and remain ahead of the curve during the impending downturn.

Differences between Short Term Rental Vs Long Term Rental

Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.  

On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals. 

Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend.  It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own. 

Rental Regulations in Australia

Long-Term Rentals in Australia

In general, Australian rental regulations vary depending on the region. But they usually cover a wide range of topics including rent increases, lease agreements, bond payments, repairs and maintenance, and termination of tenancy. Here are some key points to keep in mind:

• Tenancy agreements: A fixed-term agreement has a specific end date, while a periodic agreement continues until one party gives notice to terminate.

• Rent increases: Landlords can only increase rent once every 12 months. They must give the tenant at least 60 days’ notice before the increase takes effect.

• Bond payments: Landlords can require tenants to pay a bond, which is typically equal to four weeks’ rent. This bond must be lodged with the relevant state or territory authority and returned to the tenant at the end of the tenancy, provided there is no damage to the property.

• Repairs and maintenance: Landlords are responsible for repairing the property to a certain and reasonable extent. Tenants are responsible for keeping the property clean and notifying the landlord of any immediate repairs.

• Termination of tenancy: A landlord can only terminate a tenancy in certain circumstances, such as if the tenant has breached the tenancy agreement. A tenant can terminate a tenancy by giving the required notice period, which is usually 14 days for periodic tenancies and the remaining term for fixed-term tenancies.

To prevent any legal complications, landlords in Australia must have a clear understanding of the regulations in their specific state or territory. Landlords can obtain further details and guidance from their local government or rental authority.

Short-Term Rentals in Australia

Just as in long-term rentals,  keep in mind that Airbnb regulations also vary depending on the state or territory in which your rental property is located. However, in general, short-term rentals are regulated to ensure safety, quality, and fair trading practices for both renters and property owners. Here are some important points to consider:

• Registration and licensing: Short-term rental hosts may need to register their properties or obtain a license before operating in some states and territories. For instance, hosts in New South Wales need to register their properties with the government and obtain a unique registration number.

• Safety requirements: To ensure guest safety, short-term rental properties must meet specific safety standards, such as having smoke alarms, fire extinguishers, and safety switches.

• Insurance: Hosts may be required to get insurance coverage that specifically covers short-term rentals.

• Planning and zoning regulations: Some areas may have planning and zoning regulations that restrict or limit short-term rentals.

• Noise and nuisance: Short-term rental hosts must ensure their properties don’t create excessive noise or nuisance for neighbors.

• Taxation: Short-term rental hosts generally need to pay taxes on their rental income, which may include Goods and Services Tax or other taxes specific to short-term rentals.

To avoid legal issues, it’s important for short-term rental hosts in Australia to know the regulations in their state or territory. Hosts can seek more information from their local government or rental authority.

Advantages of Long-Term Rentals in Australia:

Below are the advantages of operating a long-term or traditional rental property in Australia:

• Growing population – With over 26 million people, Australia displays a positive population growth with an annual increase of 1.6%. Migration always plays a huge part in this number with 303,700 people deciding to live in Australia in 2022 alone. 

• A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average weekly rent in Australia is A$480.

• Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.

• Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended. 

Advantages of Short-Term Rentals in Australia:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in Australia:

• Strong tourism industry –  Over a million foreign tourists visit Australia each month. This makes the country a top-notch global spot for tourism. The tourism industry in our country adds up to $152 billion to the economy, sustaining over 300,000 enterprises, and providing employment to more than 660,000 individuals in Australia.

• Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.

• Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.

• Feel more control over the property –  Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

Short Term Rental vs Long Term Rental in Australia

The Australia Rental Market

Here are a few Australian rental markets with their respective average yields to gauge the profitability of short-term vs long-term rental properties:

1. Sydney
  • Long-Term Rent: A$820 per week
  • Existing Airbnb listings: 12,307
  • Airbnb annual revenue: A$45,076
  • Airbnb occupancy rate: 69%
  • Seasonality: 38%
  • Average daily rate: A$177
2. Melbourne
  • Long-Term Rent: A$720 per week
  • Existing Airbnb listings: 15,320
  • Airbnb annual revenue: A$55,020
  • Airbnb occupancy rate: 70%
  • Seasonality: 38%
  • Average daily rate: A$219
3. Adelaide
  • Long-Term Rent: A$420 per week
  • Existing Airbnb listings: 3,816
  • Airbnb annual revenue: A$60,606
  • Airbnb occupancy rate: 83%
  • Seasonality: 34%
  • Average daily rate: A$197
4. Perth
  • Long-Term Rent: A$550 per week
  • Existing Airbnb listings: 415
  • Airbnb annual revenue: A$49,533
  • Airbnb occupancy rate: 91%
  • Seasonality: 25%
  • Average daily rate: A$146
5. Darwin
  • Long-Term Rent: A$350 per week
  • Existing Airbnb listings: 864
  • Airbnb annual revenue: A$68,768
  • Airbnb occupancy rate: 68%
  • Seasonality: 89%
  • Average daily rate: A$229
6. Newcastle
  • Long-Term Rent: A$765 per week
  • Existing Airbnb listings: 1,164
  • Airbnb annual revenue: A$54,656
  • Airbnb occupancy rate: 62%
  • Seasonality: 44%
  • Average daily rate: A$255
7. Cairns
  • Long-Term Rent: A$950 per week
  • Existing Airbnb listings: 263
  • Airbnb annual revenue: A$66,595
  • Airbnb occupancy rate: 85%
  • Seasonality: 52%
  • Average daily rate: A$216
8. Hervey Bay
  • Long-Term Rent: A$550 per week
  • Existing Airbnb listings: 381
  • Airbnb annual revenue: A$45,128
  • Airbnb occupancy rate: 79%
  • Seasonality: 38%
  • Average daily rate: A$162
9. Sunshine Coast
  • Long-Term Rent: A$600 per week
  • Existing Airbnb listings: 6,535
  • Airbnb annual revenue: A$88,098
  • Airbnb occupancy rate: 85%
  • Seasonality: 40%
  • Average daily rate: A$294
10. Gold Coast
  • Long-Term Rent: A$595 per week
  • Existing Airbnb listings: 7,117
  • Airbnb annual revenue: A$85,271
  • Airbnb occupancy rate: 90%
  • Seasonality: 38%
  • Average daily rate: A$284

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of Australian rental properties should consider strategizing their rental business to ensure financial security, especially in the threat of an economic recession.

Now that you know the difference between short-term vs long-term rental income, Airbnb is the key to having better returns. But to make it work, Airbnb hosts must also do their part. Incorporating data analytics into your strategy can provide valuable insights for setting the right nightly rates. Fortunately, Airbtics offers macro and micro views of rental markets, enabling you to make data-driven decisions and increase your market rent.

Enticed to see how your property will make via Airbnb? Check out this accurate Short-Term Rental Profit Estimator!

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

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Cheapest Massachusetts Investment Property Markets Below 200K For Your Next Airbnb

Massachusetts investment property

Massachusetts investment property

Key Takeaways

‣ With its hundreds of world-renowned educational institutions, Massachusetts is known as the most educated state in the United States. With the average property price of $545,516, it might be a challenge for a lot of investors to tap into its Airbnb market. 

‣ In this article, we will provide you with a list of the best rental markets in Massachusetts for under $200K. You will also learn how these markets can go in terms of profits by using short-term rental data analytics.

Introduction

You do not need a Harvard degree for you to find profitable Airbnb markets in Massachusetts. With just a click, you will realize you can find one with ease using short-term rental data analytics. But if you have a maximum property price for an investment, then this article is for you. 

In this article, we will talk about profitable Massachusetts Investment Property Markets that you can enter with less than 200K capital. 

Is Massachusetts good for real estate investment? 

Nearby educational institutions are among the considerations when buying an investment property. Massachusetts public education system operates 1,751 schools. On the other hand, the state has 866 private schools.  

It just also happens that Massachusetts is the location of hundreds of world-renowned universities such as MIT, Harvard, and Tufts.  Top liberal arts colleges such as Amherst, Wellesley, Smith, and Williams are also found in Massachusetts. It is no surprise that Massachusetts tops the list of the most educated state. In short-term rentals, investors can expect a high number of exchange students needing an Airbnb.

How much does Airbnb make in Massachusetts?

According to March 2023 data from Airbtics, a one-bedroom Airbnb property in Boston can earn $204 from a strong occupancy rate of 79%. Its peak season is June. This can bring in $6,399 for this month alone. Annually, the said property size can generate an income of $56,935. These figures can manage the expectations from investing in Boston real estate market.

Massachusetts investment property

Cheapest Cities for Airbnb Investments in Massachusetts Under 200K

Massachusetts’ average property price is $545,516. This price alone makes real estate investing in Massachusetts seem like a hefty investment. But below is the list of markets that you can enter with just under 200K. We can also rely on Airbtics Dashboard to see if these markets can bring in profits. And according to data, they can! 

1. Boston
  • Property price: $109,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 85%
  • Annual Revenue: $83,949
2. Springfield
  • Property price: $70,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 89%
  • Annual Revenue: $42,682
3. North Adams
  • Property price: $139,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 63%
  • Annual Revenue: $35,173
4. Northampton
  • Property price: $149,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 88%
  • Annual Revenue: $60,219
5. Worcester
  • Property price: $199,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 73%
  • Annual Revenue: $38,770
6. Williamstown
  • Property price: $175,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 67%
  • Annual Revenue: $51,294
7. Dennis
  • Property price: $63,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 52%
  • Annual Revenue: $45,871
8. Wareham
  • Property price: $179,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 52%
  • Annual Revenue: $47,923
9. Pittsfield
  • Property price: $150,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 55%
  • Annual Revenue: $42,747
10. Yarmouth
  • Property price: $149,900
  • Property size: 1 bedroom
  • Occupancy Rate: 66%
  • Annual Revenue: $36,677

Conclusion

In this article, we have found out that buying a rental property in Massachusetts is within reach. Of course, all investors who spend even USD 200K on an investment property still want to make the most out it. For this, we can rely on short-term rental data analytics to monitor the Airbnb Massachusetts market. It will give them a bird’s-eyeview of important data like occupancy rate and average revenue. This way they will be guided to continue making informed business decisions.

If you fear doing the math, let this free Airbnb Profit Calculator do the analysis for you.

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Short Term Rental vs Long Term Rental in the US

short term rental vs long term rental in the US

short term rental vs long term rental in the US

Key Takeaways
  • If you’re a traditional landlord in the US looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

As a rental property owner in the US, the inevitable 2023 recession has probably caused you to rethink your investment strategy. But don’t worry, we’re here to help guide you through these uncertain times. 

Whether you own short-term or long-term rental properties, this article provides you with valuable insights on how to make sound investment decisions. We believe that economic data should not only be accessible to analysts, but also to property owners. By incorporating easy-to-use data analytics, you can maximize your real estate investments and stay ahead of the game during the upcoming downturn.

Differences between Short Term Rental Vs Long Term Rental

Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.  

On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals. 

Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend.  It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own. 

Rental Regulations in the United States

Tenant’s Right

Tenants in the United States have certain rights that are protected by law. Landlords should also provide tenants with a written lease agreement that complies with all relevant laws and regulations. This includes clearly stating the leasing period, monthly rental rates, and the names of all tenants. 

One of the most important rights that a tenant has is the right to a habitable dwelling. This means that the landlord is legally obligated to provide a safe and livable space, free from hazards like mold, lead paint, or structural defects. If tenants notice any serious problems with the dwelling, landlords should act immediately right after they are notified. 

Another key tenant’s right is the right to privacy. Landlords cannot enter the property without the tenants’ permission – except in emergency situations or with proper notice. This means that tenants have the right to enjoy their living space without fear of intrusion or harassment.

For more information, check out the state-specific laws from this blog.

Airbnb Regulations

As an Airbnb host, it’s crucial to be aware of the regulations that govern short-term rentals in the United States. Regulations vary by city and state, but some general guidelines can help ensure compliance with local laws. Some cities have imposed restrictions on short-term rentals to protect long-term housing availability. For instance, in New York City, it is illegal to rent out an entire apartment for less than 30 days without the owner being present. Additionally, hosts may be required to pay taxes or fees on their rentals. For example, Chicago mandates hosts to obtain a vacation rental license and pay a 4% hotel accommodation tax. 

Hosts must also be mindful of building and safety codes, as they may need to make upgrades or changes to meet local requirements. Being a responsible and considerate host is equally important. It’s essential to communicate clearly with guests, provide them with accurate property information. Hosts should ensure their safety and comfort during their stay. By staying up-to-date with the regulations in the area, hosts can enjoy a successful and rewarding experience on Airbnb.

Advantages of Long-Term Rentals in The United States:

Below are the advantages of operating a long-term or traditional rental property in the United States:

• Strong population – With over 334 million residents, the United States is the third most populous country in the world. This fact alone can guarantee landlords a strong market demand for long-term rental properties. In 2022 alone, the US population rose to 0.4% – indicating recovery from the COVID-19 Pandemic.

• A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in the United States is $1,702.

• Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.

• Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended. 

Advantages of Short-Term Rentals in the United States:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in the United States:

• Strong travel and tourism industry – The tourism sector in the United States produced an economic output of $1.9 trillion, providing employment to 9.5 million Americans and contributing 2.9% to the country’s GDP. The United States is the country where international travelers spend the most, accounting for 14.5% of international travel expenses worldwide.

• Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.

• Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.

• Feel more control over the property –  Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

US Rental Markets

To know which setup can yield more returns to property owners, here is a view of various US rental markets with their respective average yields from both short-term and long-term rental properties:

1. Los Angeles 
  • Median Rent: $2,995
  • Existing Airbnb listings: 2,543
  • Airbnb annual revenue: $42,474
  • Airbnb occupancy rate: 79%
  • Average daily rate: $142
2. Seattle
  • Median Rent: $2,995
  • Existing Airbnb listings: 4,057
  • Airbnb annual revenue: $47,368
  • Airbnb occupancy rate: 81%
  • Average daily rate: $145
3. Houston
  • Median Rent: $1,800
  • Existing Airbnb listings: 7,591
  • Airbnb annual revenue: $21,399
  • Airbnb occupancy rate: 48%
  • Average daily rate: $111
4. Boston
  • Median Rent: $3,225
  • Existing Airbnb listings: 2,141
  • Airbnb annual revenue: $51,653
  • Airbnb occupancy rate: 77%
  • Average daily rate: $185
5. Detroit
  • Median Rent: $1,200
  • Existing Airbnb listings: 998
  • Airbnb annual revenue: $20,285
  • Airbnb occupancy rate: 44%
  • Average daily rate: $121
6. Portland
  • Median Rent: $1,775
  • Existing Airbnb listings: 3,221
  • Airbnb annual revenue: $36,749
  • Airbnb occupancy rate: 81%
  • Average daily rate: $112
7. New Orleans
  • Median Rent: $1,802
  • Existing Airbnb listings: 5,707
  • Airbnb annual revenue: $46,797
  • Airbnb occupancy rate: 65%
  • Average daily rate: $186
8. Phoenix 
  • Median Rent: $2,100
  • Existing Airbnb listings: 5,560
  • Airbnb annual revenue: $40,585
  • Airbnb occupancy rate: 64%
  • Average daily rate: $158
9. Austin
  • Median Rent: $2,326
  • Existing Airbnb listings: 7,768
  • Airbnb annual revenue: $45,655
  • Airbnb occupancy rate: 65%
  • Average daily rate: $181
10. Richmond
  • Median Rent: $1,499
  • Existing Airbnb listings: 588
  • Airbnb annual revenue: $38,656
  • Airbnb occupancy rate: 76%
  • Average daily rate: $128

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of US rental properties should consider strategizing their rental business to ensure financial security, especially in times of economic recession.

Now that you know the difference between short-term vs long-term rental income, Airbnb is the key to having better returns. But to make it work, Airbnb hosts must also do their part. Incorporating data analytics into your strategy can provide valuable insights for setting the right nightly rates. Fortunately, Airbtics offers macro and micro views of rental markets, enabling you to make data-driven decisions and increase your market rent.

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Make Your Property Investment Recession Ready!

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