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2 Proven Strategies to Find Best Airbnb Markets in 2024

This is the complete Airbnb market research guide for property investors. 1. City analysis (high rental yield, appreciation, and regulations) 2. Neighborhood analysis.

2 Proven Strategies to Find Best Airbnb Markets in 2024

Airbnb Market Research

2 Proven Strategies to Find Best Airbnb Markets in 2024

This is the complete Airbnb market research guide for property investors. 1. City analysis (high rental yield, appreciation, and regulations) 2. Neighborhood analysis

Best Airbnb Markets provide you with high rental yields and good appreciation potential. The local government’s standpoint on short-term rental is important as well. 

In some markets, you can make four times more than a traditional rental. Start Airbnb in the right location! 

This blog isn’t about the top market list but about short-term rental market research. So, you can find profitable markets among your preferred markets. There are some blog posts and YouTube videos online talking about the top Airbnb markets. There’s a good chance that those markets will become saturated after a dozen investors enter the area this year and more next year.  

The successful short-term rental market research step is as follows 

  • City Analysis: Find 2-3 good markets with 1) high rental yield, 2) good appreciation outlook, and 3) STR-friendly government. 
  • Neighborhood Analysis: Identify the profitable neighborhoods and types of property 
Airbnb Market Research

 

Now you’ve found a profitable property, and it’s up and running, giving you a good income. What more can you do? 

Increase the value of your property as a turnkey property by 

  • Refurbishments
  • Remodel
  • Expansion
  • getting a short-term rental permit
  • increase your occupancy rate by optimizing your Airbnb listing

As you can see, there are more chances for you to increase the value of your real estate investment as a short-term rental than a traditional long-term rental.

City Analysis: 3 pillars of good short-term rental markets 

Use these 3 criteria to identify markets that will give you a better return. These pillars are for choosing the right markets, not the right property. In a market fitting those 3 criteria, you will have higher cash flow. You will expand your property investment business faster. 

 

Start with listing down 10 cities that you are considering to start an Airbnb. It’s good if you have some connections in the place or you’d like to spend a good amount of your time. It can be your favorite vacation spot, or have family living down there. After doing the city analysis, you will have clarity on the top 2-3 markets out of the 10 markets you were considering. 

High Airbnb Rental Yield 

The first pillar is a rental yield as a short-term rental. This is the ratio between the property price and your first-year short-term rental revenue. The higher the average rental yield, the better. 

Tip: You’ll compare different cities during this research. Choose a specific number of bedrooms to calculate your Airbnb rental yield. 

 

How to find short-term rental revenue in a city?

You can get this data easily from a free Airbnb analyzer. Enter any global market names after signing up for Airbtics. Then, you will get the average year-round short-term rental revenue, daily rate, and occupancy rate of a market. 

This will also answer the following questions. How much does an average listing in the city make per year? What’s the year-round average occupancy rate? How much do they charge per night? 

How does this data work? Airbtics tracks over 10 million short-term rentals from various sources every day. Please note that the occupancy rate per number of bedrooms is only available in the premium account. 

How to find an average property price? 

It’s time to find cities with cheap property prices. Heated property markets, like San Francisco, aren’t usually an ideal place. Whereas places like Joshua Tree with cheap prices, are better. 

Different countries have different sources of information 

US, Canada: Redfin, Zillow  

UK: Rightmove 

Spain, Portugal, France, Italy: Casafari 

Australia: realestate.com.au 

Market research summary

  1. 1) Use an Airbnb analytics tool to get the average Airbnb revenue potential.
  2. 2) Use a real estate site to get the average property sale price. 
  3. 3) Get gross rental yield by dividing Airbnb revenue into property prices.

Population and economic trends 

In the end, you’ll earn money from both rental income and equity appreciation. Real estate market analysis is what you need to incorporate here. Typical factors you need to look into are as follows, and you want them to be on an inclining side in the last 5 year 

– Population growth 

– Income growth 

– Crime rate decline 

– Employment rate growth 

You would also look into planned major real estate developments. 

However, you could simply focus on two major indicators: Population and income growth. You may incorporate other indicators. This sort of data is usually available from government websites. 

What you want to do here is to check population and average household income changes over the past 5 years. Then, calculate the “change rate in the past 5 years” for both population and income changes. Finally, get the average of those two rates. 

How to calculate the change rate?  it’ll be (population_2022 – population_2018) / (population_2022)

Short-term rental regulation 

Some city governments are more welcoming to visitors to the city. It’s usually the cities where tourism is a major economic activity.

 You should verify the following information for each city 

  1. 1. What is the current short-term rental regulation? 
  2. 2. How strictly is it enforced? 
  3. 3. Read through news about short-term rental regulations in the city. 

What is the current short-term rental regulation? The short-term rental regulations are somewhat similar worldwide. I’ve sorted out regulations by most “strict” to “lenient”. The one at the top is the most strict. Put the “regulation” score between 1 (strict) and 5 (lenient). 

  1. 1. The owner must live on the property 
  2. 2. Only able to rent out as a short-term rental for a certain number of days (90 days, 3. 180 days, etc) 
  3. 4. Only certain zone or type of property is allowed to do short-term rentals 
  4. 5. Required to apply for a short-term rental permit and pay annual fees 
  5. 6. Required to inform the local government 

How strictly is it enforced? Take a look at Airbnb in the market, and read the recent reviews in the listings. Verify if the laws are really enforced. They might say the owner must live on a property, but some hosts may run 10 units in the same market. There are many markets where the regulations are not properly enforced for various reasons. In this case, you should re-adjust the regulation score. 

Read through the recent 2 years’ news. Search on Google to go through the news about short-term rentals in the market. Is the mayor talking negatively about short-term rentals? You can see the sentiment towards short-term rentals by checking the news. If they talk negatively about reducing the regulation score by 1, if they talk positively about it, increase the regulation score by 1. 

How use these numbers? 

The final result should look something like this.

From here, it is up to you to determine your focused markets. There is no set-in-stone formula to determine because it depends on what you put more weight on whether short-term profit or long-term appreciation. 

Personally, I first took a look at the top 2 by Airbnb rental yield and the top 2 by appreciation factors. I removed the one with strict regulation (where they restrict STR by number of days a year). 

In the above example, I’d choose Liverpool and Lisbon for the high gross rental yield and friendly STR regulation. Their population and income changes are positive as well. 

Don’t choose more than 3 cities. You will need to do neighborhood analyses of those 3 cities as the next step. You can add more cities after doing the neighborhood analysis. Each city would have at least 3 interesting neighborhoods. This can lead to 9 neighborhood analyses if you choose 3 cities. Having to do so many neighborhood analyses will lead you to decision paralysis. 

Try to do a neighborhood analysis on at least 2 cities. This will help you to be detached from one specific city you love. 

Have 2-3 cities ready? Then, read below to learn how to do neighborhood-level analysis! 

Neighborhood Analysis: How to choose the right property type? 

Once you’ve got the idea of 2-3 good markets to start an Airbnb, it’s time for you to do a more specific analysis. You need to find a good neighborhood and the right type of property. 

The outcome of this analysis is as below 

  1. 1) Top 2-3 most desirable neighborhoods for short-term rentals 
  2. 2) Best number of bedrooms (E.g. 3 or 4 bedrooms) 
  3. 3) Best property type (E.g. House with a pool) 

Finding the neighbourhoods.

Neighborhoods don’t have to be zipcodes or certain administrative divisions. It just refers to an area with a similar property price and Airbnb revenue. This can be determined by how close your place is from specific landmarks or many other ways. 

In the same market, different neighborhoods have different levels of demand. Starting in the right neighborhood goes a long way since you can’t change the neighborhood once you commit to it. This can be counterintuitive. There is a case where in-land properties have a higher occupancy rate than beachfront properties. After our analysis, we found out people like to stay near train stations for easier access to restaurants and public transport. 

How to? 

So, how can you find an area with high demand? You can use the heatmap feature from the Airbtics app. Dark red represents an area with a high occupancy rate. You can change the color to represent a number of listings or year-over-year change in occupancy. This will give you where are the hotspots and with a high demand.

airbnb occupancy rate heatmap

Number of bedrooms

First of all, it depends on your budget. Are you looking for a big size or a small size property? 

Then, take a closer look at occupancy rates and the number of listings per number of bedrooms. A certain number of bedrooms may do better than the other. Keep in mind – the number of bedrooms is one of the most important factors for Airbnb guests. 

Here, write down on your worksheet about average yearly revenue of different sizes of bedrooms. This will give you a good guide once you start looking at different properties for sale. 

Neighbourhood A (Airbnb yearly revenue) 

  • 2 bd: $85,000 
  • 3 bd:  $92,000
  • 4 bd: $135,000

Neighbourhood B (Airbnb yearly revenue) 

  • 3 bd: $59,000
  • 4 bd: $70.000
  • 5 bd: $92,000

Type of property: 

Take a look at the top properties in each of the neighborhoods. What do they look like? 

Firstly – is it a condo or a standalone house? 

Secondly – what other characteristics? 

It might be a wood cabin or a tiny house or a condo with many amenities. Note this down in your worksheet. 

 

How to? 

You can achieve this by using the Airbtics app. There is a section called “Top properties”. This section shows the top-performing properties in a specific neighborhood that you see on the map.  

Ensure your data is accurate 

Your entire market research should not depend on a single data source unless it is from an official source. 

For Airbnb revenue data, there is no officially available data anywhere. If you are using the Airbtics app, it’s a good idea to cross-check with other data platforms’ free data. Check if the occupancy rate or yearly revenue is similar in multiple data sources. If yes, the data you are using should be fine. If they all show very different numbers, you may have to check further. Go and check the Airbnb website and review the listings. Ask realtors or hosts in the area.

 

Review of best Airbnb markets available online 

Data source: Airbtics, 2022 Nov – 2023 Oct data. 

Sedona, AZ 

  • Occupancy rate – 68 %
  • Daily rate –  $235
  • Yearly revenue –  $32,116
  • Number of listings – 1,116

Santa Fe, New Mexico 

  • Occupancy rate –  74%
  • Daily rate –  $196
  • Yearly revenue – $55,174
  • Number of listings – 1,318

Savannah, GA 

  • Occupancy rate – 67%
  • Daily rate – $189
  • Yearly revenue – $29,674
  • Number of listings – 2,597

Barcelona, Spain 

  • Occupancy rate – 88%
  • Daily rate – €128
  • Yearly revenue – €10,591
  • Number of listings – 13,829

Bourne, MA 

  • Occupancy rate – 68%
  • Daily rate – $284
  • Yearly revenue – $59,251
  • Number of listings – 23

Colorado Springs, CO 

  • Occupancy rate – 70%
  • Daily rate – $121
  • Yearly revenue – $32,502
  • Number of listings – 2,492

Dallas, TX 

  • Occupancy rate – 59%
  • Daily rate – $124
  • Yearly revenue – $8,863
  • Number of listings – 5,0525

Eureka, IL 

  • Occupancy rate – 55$
  • Daily rate – $80
  • Yearly revenue – $19,010
  • Number of listings – 11

London, United Kingdom 

  • Occupancy rate – 82$ 
  • Daily rate – £236
  • Yearly revenue – £16,812
  • Number of listings – 4,432

Melbourne, Australia 

  • Occupancy rate – 66%
  • Daily rate – A$196
  • Yearly revenue – A$17,641
  • Number of listings – 20,327

Pascagoula, MS 

  • Occupancy rate – 48%
  • Daily rate – $124
  • Yearly revenue – $24,355 
  • Number of listings – 26

Rome, Italy 

  • Occupancy rate – 96%
  • Daily rate – €129
  • Yearly revenue – €17,033
  • Number of listings – 22,863

Salt Lake City, UT 

  • Occupancy rate – 71%
  • Daily rate – $98
  • Yearly revenue – $27,401
  • Number of listings – 1,845

Vancouver, Canada 

  • Occupancy rate – 85%
  • Daily rate – C$182
  • Yearly revenue – C$53,282
  • Number of listings – 5,361

Conclusion 

 

Here’s a recap. The goal of this market research is to find the best cities for you to start an Airbnb. You’ll start with 10 cities you like to consider starting an Airbnb. You’ll select 2-3 cities based on appreciation factor, STR regulation, and yearly rental yield. After this, you’ll do a more specific neighborhood-level analysis. 

 

Now, this is it! You have 2-3 cities. You have 2 neighborhoods in each city with the best number of bedrooms and type of properties. Use this knowledge to search for properties for sale. Let the realtors know about your criteria. Go and visit the properties for sale. 

 

It’s a good idea to tweak a little on this framework so that it makes more sense to you. Best luck! 

 

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Navigating VRBO Occupancy Rates: A 2024 Guide

If you’re playing in the field of vacation rentals, you might also list your properties in VRBO, not just in Airbnb. This article will guide you in accessing both Airbnb and VRBO Occupancy Rate.

Navigating VRBO Occupancy Rates: A 2024 Guide

vrbo occupancy rates

Navigating VRBO Occupancy Rates: A 2024 Guide

If you’re playing in the field of vacation rentals, you might also list your properties in VRBO, not just in Airbnb. This article will guide you in accessing both Airbnb and VRBO Occupancy Rate.

Navigating VRBO Occupancy Rate: A 2024 Guide

Success in the world of vacation rentals demands a keen understanding of occupancy rates (OR), a key metric that directly influences the success of your investment. In this in-depth exploration, we’ll delve into the intricacies of Airbnb & VRBO occupancy rates, unraveling the methods to obtain this critical data, and providing actionable tips to maximize your occupancy rates.

What’s a Good Airbnb & VRBO Occupancy Rates?

In vacation rentals, an occupancy rate is a good indicator of whether your rental business is succeeding or failing. When occupancy rates are good, you know that you’ll get high profit from your business. I assumed you already know what an occupancy rate is–it simply answers the question, “How many days is a listing occupied during its available time?”

Another important question is, how would you know if the OR is good? What’s a good VRBO occupancy rate? Understanding the baseline for a good VRBO occupancy rate is the first step in optimizing your vacation rental business.

In the US, the average Airbnb occupancy rate is 48%. Using this benchmark, you can consider anything higher or closer as a good occupancy rate for VRBO. For instance, Washington has the highest Airbnb OR in the US with 77%. Although this applies to the US, just keep in mind that the average occupancy rate varies depending on the region.

How to Get Airbnb and VRBO Occupancy Rates?

There are two major approaches to getting the OR from these two platforms: the practical approach through accessing availability on calendars and the automated one using a market research tool.

Accessing Availability Calendars

Start by navigating the VRBO platform and accessing the listings of properties in your area. After that, utilize the search filters to narrow down your focus based on property specifications such as property type, size, amenities, etc.

Another way to do that is to dive into the detailed listings of the properties identified as comparable to your prospective investment. VRBO listings often furnish comprehensive information about the property, accompanied by a visual representation of the availability calendar.

1. Visualizing Booked and Available Dates:

VRBO typically presents availability calendars in a user-friendly visual format to distinguish between booked and available dates. Each property’s calendar displays a color-coded system, enabling users to quickly discern the status of specific dates.

vrbo occupancy rates

Source: CabinKey 

Next is to analyze booking patterns and trends by scrutinizing the booking frequency of these comparable properties. Pay attention to periods of high demand, marked by clusters of booked dates, and identify any seasonal variations that may influence occupancy rates.

2. Identifying Peak Periods and Assessing Gaps

Take note of peak periods when properties exhibit higher booking rates. This insight is crucial for understanding the seasonal dynamics of the market and adjusting your strategy accordingly.

More importantly, evaluate gaps in bookings to identify potential opportunities or challenges. Understanding periods of lower occupancy allows you to devise targeted strategies to attract guests during these times.

3. Refining Your Strategy

Now that you’re armed with insights from the availability calendars, refine your investment strategy. Consider adjusting pricing, promotional efforts, or the overall guest experience based on the observed booking patterns.

Keep in mind that the vacation rental market is dynamic, and trends can evolve. Continuously monitor availability calendars to stay informed about changes in demand. This allows you to adapt and optimize your property’s performance.

Pros & Cons

This practical approach will give you the most important information you need to know to strategize your bookings and increase your revenue in the VRBO platform. However, this alone would take you time to finish and see results. In doing business, you need to know which task to prioritize and which gives you more returns.

The market research step is for sure the most vital in getting started or maximizing your portfolio and profit, however, this step shouldn’t be tedious as I have shared above.

Using a Market Research Tool

To speed up your process, there are a few market research tools for vacation rentals that you can use. With this tool, you can easily get the data in just seconds after typing your location. Isn’t it great? You can cross out the three steps in accessing available calendars of VRBO, and just jump into a vacation rental market research tool!

The leading tools that you can trust to check the occupancy rates of your vacation rental listings are AirDNA and Airbtics. AirDNA covers VRBO and Airbnb data, while Airbtics covers Airbnb data with a data accuracy rate of 97%.

If you haven’t listed your properties yet on Airbnb, here’s a definitive guide to do that!

Accessing Occupancy Rates through Airbtics

Since we are automating the long process of manual data gathering and analysis, accessing OR through Airbtics will simply take you seconds! Here are 3 steps on how you can fully utilize the Airbnb analyzer:

1. Typing in your preferred area

You can start for free with the Airbtics app. All you need to do is go to Airbtics.com to type in the location you want to check the OR. If you have several locations that you want to check, don’t worry as searching won’t cost you anything!

vrbo occupancy rates

After that, you’ll be redirected to our Airbtics dashboard, and in just a matter of seconds, you can see the potential revenue, occupancy rates, and nightly rates of your area without paying a cent.

2. Analyze Potential Revenue per Property Size

Now, you will be able to get a general overview of your target market. But don’t stop there, go ahead and try the filters that will help you find what type of property generates a higher profit in the area. You may also see the seasonality and historical performance of your chosen market!

vrbo occupancy rates

As you will see, Airbtics provides dynamic data. This means that while you move and zoom in and out of your map, the data will also change accordingly to deliver more specific results. 

3. Maximize the Advanced Filter and View the Top VRMs

Feel free to discover more in-depth insights with the advanced filters. Do not hesitate and include specific amenities such as pools, parking, hot tubs, and more to get a better understanding of the area. 

short-term rental analytics tool

vrbo occupancy rate

Additionally, you will also discover the details of your potential competitors like the amount of listings they’re managing and their revenue.

4. Find out How Much You can Earn in your Property

Go ahead and repeat this process as much as you want until you find which property type and amenities are the best investment options in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.

Airbtics Dashboard allows users to explore a city, neighborhood or suburb, providing valuable insights to simplify their investment research!

Pros and Cons

Although online tools could be a game-changer in your business, there can be some discrepancy in the data for both AirDNA and Airbtics, even though both of these tools have the highest data accuracy among all market research dashboards.

If you’re in doubt, you can always validate the OR with some local market knowledge and a little bit of research in the area. After all, both platforms have helped many users who could attest to the success of using automated tools.

Top Secrets to Increase Occupancy Rates in Airbnb and VRBO

Are you looking for hacks to increase your OR for both platforms? Let’s share some game-changing tips that could lead you to a more profitable business and prosperous life in the next few years!

1. Increase Positive Reviews

Put yourself in the guest’s shoes, which one will you look at first when browsing a vacation rental listing? Note that they haven’t been in your property. Their senses haven’t filled in by the unique experience your listing can offer them.

So what could be a key factor they will consider before hitting the “book now” button? Increasing positive reviews and gaining a 5-star rating is the first thing you should do to boost your OR. Here’s a full vacation rental checklist on how to get a perfect 5-star score in your rating!

vrbo occupancy rates

vrbo occupancy rate

2. Create a Unique Guest Experience

In any type of business, you need to stand out from the crowd to survive. A vacation rental business isn’t different from the typical business out there. Think about the uniqueness of your offer. Do you have a better sea view than your competitors? Is your listing more accessible than others? Does your property give this cozy, relaxed vibe with amazing amenities that your guests could enjoy?

By identifying your unique value proposition (UVP), you can heighten your occupancy rate and showcase this on your listing. Once you have identified, take a photo of your amenity to pique the interest of the viewers and mention it in the listing description.

3. Considering regulations and property values

Boosting occupancy rates isn’t just about the guest experience. It’s also about the legal capacity of your property in your area. For instance, some cities aren’t allowing Airbnb listings to have more than 180 available dates in a year. If this is the case, how high is the possibility that you’ll gain profit if you only have a limited number of dates to host guests annually?

It’s frustrating, I know. That’s why regulations can be a major factor in improving your Airbnb and VRBO occupancy rates. Checking first which cities have lenient and strict rules can help you navigate the profitability of your vacation rental business.

Final Takeaways

Occasionally tracking occupancy rates is as crucial as tracking your monthly to annual business expenses. It’s a good indicator to measure the temp of your vacation rental business. Although Airbnb and VRBO occupancy rates are trackable with manual steps, you can also maximize an Airbnb analyzer to speed up the process.

Airbtics is the leading market research tool in the vacation rental industry! It has helped several investors, hosts, and vacation rental managers augment their profits by making smart decisions through vacation rental data. 

vrbo occupancy rate

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What is STR in Real Estate? A Complete Guide for Investing Newbie

What is STR in real estate? Learn the answer from this article and get the complete guide to succeed in this exciting kind of rental game!

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What is STR in Real Estate? A Complete Guide for Investing Newbie

what is str in real estate

What is STR in Real Estate? A Complete Guide for Investing Newbie

What is STR in real estate? Learn the answer from this article and get the complete guide to succeed in this exciting kind of rental game!

What is STR in Real Estate? A Complete Guide for Investing Newbie

After years of hard work and meticulous savings, the time has come to let your hard-earned money work for you. It’s time for you to start investing in real estate. But a few questions remain, and one of them is “What is STR in real estate?” 

Real estate investing has many sides. For starters, short-term rentals are among its most popular and lucrative facets. And with the right strategies, it’s not really that hard to succeed in them. But we’ll caution you that it takes some dedication and hard work. These are the qualities that we’re sure you already have.

So, let this article be your trusty guide as you set to become a real estate investor! We will unveil a comprehensive roadmap to help you understand STR in real estate. We’ve got every aspect of your STR journey covered.

  • The STR real estate definition
  • STR vs LTR
  • Things to consider in real estate STR investing
  • How to invest in STR (ways to maximize profits)
  • Creating an Airbnb Listing
  • Optimizing Airbnb Nightly Rate

What is STR in Real Estate?

STR in real estate is the shorthand for short-term rentals. These are investment properties that are rented out for short periods, usually for fewer than 30 days. 

This is a revolutionary business model popularized by Airbnb that has redefined how travelers experience accommodation. There are other companies in the business like Vrbo and Booking.com. However, Airbnb still remains the leading home-sharing platform. 

But these companies are not alone in making profits. In fact, more property owners have shifted from long-term rentals. Many investors have benefited from short-term rental properties’ higher rental income potential. And the cherry on top? STR listings get free marketing and promotion on these home-sharing platforms!

And for anyone who wants to have a slice of action, any property type and size can listed on Airbnb. Short-term rental properties can be a single room, entire house, apartment, and what have you? This provides travelers with a wider range of options, making them ditch hotel accommodations. So there’s a huge pool of customers.

STR VS LTR: The Difference

Let’s talk about two types of rental investment: one for long-time tenants, and the other for short-time guests. 

Long-Term Rentals

A staple in the real estate market, long-term rentals are properties rented for a very long time, (at least six months). This is bound by a lease agreement. Long-term rental homes charge rent a bit higher than the mortgage, so they get more money every month. This rent from LTRs stays the same regardless of economic conditions, such as rising inflation or interest rates.

Why Should You Consider LTR?

  • Stable Rental Market: With a staggering 334 million residents, the United States stands as the third most populous nation on the planet. Just ponder that for a moment – this sheer abundance of people ensures a steady hunger for long-term rental properties.
    We have just given you the possibility of doing LTR in the US. But it’s still best to check the local population to verify the local demand for traditional rentals in your area. 
  • A Steady Revenue: For those who opt for the long-term rental route, a river of income flows steadily into your coffers. This financial lifeline remains remarkably resilient even in the face of changing market conditions. The average monthly rent in the United States clocks in at a substantial $1,702, ensuring a robust financial foundation for property owners.
  • Cost-Efficient Comfort: No need to empty your pockets upfront for furnishings. In the world of long-term rentals, tenants typically arrive with their own belongings, sparing you from the furnishing frenzy.
  • The Low-Key Landlord Life: If you prefer a hassle-free management style, long-term rentals have you covered. Expect less to zero day-to-day interactions with your tenants. This allows you the luxury of hands-off property management. But, tread cautiously in this tranquil territory – neglect can breed trouble, with property damages compounding if left unattended.

In this world of long-term rentals, the benefits may be abundant. And yet the potential is limited. But it’s still a route for property owners to find security in stability and prosperity in predictability. 

Short-Term Rentals

Now, let’s embark on a journey through the exhilarating landscape of short term rentals. Here, you can find a more flexible opportunity and enjoy unique advantages. 

While LTRs have tenants, STRs have guests who stay in your rental for a shorter period. Short-term rentals offer their property to guests who prefer cheaper accommodation in the area compared to hotels. 

Why You Should Do STRs?

  • Go-To Accommodation of Millions of Tourists: Picture a world where the travel and tourism industry reigns supreme. In the United States, this sector dazzles with an astounding $1.9 trillion in economic output. It employs 9.5 million Americans, contributing a substantial 2.9% to the country’s GDP.
    But here’s the kicker: the United States stands tall as the epicenter of international traveler spending, accounting for a staggering 14.5% of global travel expenses. 

Does your own city have enough market for STRs? Then find out the STR demand in your area!

  • Pricing Flexibility: Flexibility is the superpower of STR hosts. You can adjust your nightly rates at will. This can help you ride the waves of seasonality and changing market demand. With this, your property becomes a chameleon, seamlessly adapting to the ever-changing tides of the rental world.
  • Frequency of income: Imagine a stream of wanderlust-filled travelers choosing your STR! With every booking, you get to enjoy a frequent cash flow. The possibility of securing multiple guests all year round is high. This makes the income stream from STR real estate more exciting compared to LTRs.
  • The Art of Hosting: In this vibrant short-term rental world, you become a maestro of property management. It’s not just about spaces. it’s about the stories you create with every turn of guests.
    And here’s the twist: even if you’re not the “hosting” type, automation comes to your rescue. You can orchestrate your property remotely with the symphony of automated management tools.
  • Control Unleashed: Embrace the thrill of control! With guests coming and going like the tide, your property remains agile and ready for reinvention. Minor hiccups? No problem! Damages can be fixed in a jiffy, and the safety net of Airbnb insurance has your back.

In the realm of short-term rentals, every day is a new adventure, and every guest is a fresh chapter in your property’s story. It’s a dynamic world where income potential from an STR knows no bounds. Plus, the rewards are as boundless as your imagination.

Cons of STRs 

Here are a few crucial considerations that STR investors should know:

  • Airbnb Regulations – Every major travel city is threatened with STR regulations. These may cover zoning laws and permit requirements for starters. During operations, you should ensure that you meet the safety standards and comply with sanitation rules. On the other hand, stricter regulations include occupancy limits.
    Please refer to your area’s STR regulations as they may vary depending on the area. They are found on your local government website. 
  • Seasonality – Seasonality is the change in demand for rentals depending on the time of the year. The high season, where you can earn the most, includes favorable weather and popular holidays. But it’s not usually the case all year round, so you can expect and prepare for the low season in your area.
  • Startup Expenses  – Starting a vacation rental from scratch requires you to make it homey. There’s a list of startup expenses that you need to cover, and this will depend on your aesthetic and budget. 
  • Monthly Upkeep – Once a guest stays in your STR, they will unavoidably use electric appliances. This, among many other expenses, is shouldered by the hosts. In the LTR setup, tenants pay for these every month. But STR properties come with monthly expenses shouldered by the hosts. These include water, cleaning, internet, and mortgage, among others.
  • STR Financing – Financing for STRs is a bit more challenging to secure. Typical financing options may not work here. For one you cannot apply for a government-backed loan since it will be used as an STR. It’s only for people looking for a primary residence. 
    But there’s still good news. You can explore personal loans, as well as short-term rental lenders to finance your STR venture.

How To Invest in STRs

You now know the answer to “What is STR in Real Estate?” Imagine the potential income from an STR. It’s really enticing, right? But before investing in STR property and listing it on Airbnb and VRBO, there are more tips that we can share. It’s leading your money to the best STR properties!

The most successful investors are willing to pay more attention to research. In this part, we’ll provide you with simple steps to ace your STR venture!

  • Finding The Right Market (High-Demand Area for STR)

In the STR industry, short term rental markets refer to cities. And as in all aspects of real estate investment, location can mean everything. Best STR markets have a high demand for both tourists and business travelers.

Such cities offer a constant influx of potential guests, ensuring a steady flow of bookings throughout the year. Metropolises, tourist hotspots, and business centers tend to be top choices for STR investors.

You may already know this and have a list of target STR markets. But which among them offers the highest return? What you’ll need to know before investing in STR is the market’s capitalization rate (cap rate). 

Cap rate helps you figure out how much money you might make from a property investment when you pay for it in full without getting a loan. It’s a way to see how good an investment is and compare different properties. It shows the yearly profit as a percentage of what you paid for the property.

This metric is derived by dividing the property’s annual net income by its purchase price or market value. In this case, you already know your budget. You’ll need a powerful STR analytics provider to get an accurate average net income in the STR market in your list.

What is a Good Cap Rate?

For a good Airbnb investment, a cap rate between 5% and 10% is ideal. If it’s higher within this range, it means you have the potential for better returns on your investment. But be cautious. A cap rate beyond 10% might look great. However, it could also indicate risks, such as unstable property income or an uncertain market.

On the other hand, if your cap rate falls on the lower end of the 5-10% range, it suggests you might earn less, but your earnings will likely be stable. This is a safer option, especially for investors seeking a reliable, long-term income.

Cap rate does not end in letting you understand what a good investment is. It also helps you understand the risks involved in buying income-generating properties. Usually, when a property is riskier, it has the potential for bigger profits. Alternatively, lower-risk properties may give you more stable but smaller profits. So, the cap rate is like a tool that helps you balance the potential rewards and risks of property investments.

Finding the Best Submarket

I know what you’re thinking, “there’s a market, then there’s a submarket?” Yes, there is! But it’s not as complicated as it seems. When it comes to investing, submarkets are just smaller segments of your market. In fact, these are just bite-sized pieces of data that make your property search simpler to do!

For example, you have found out that you can earn the most in Miami. You’re deadset that you’re already in contact with the local realtors. Wouldn’t you want to know where exactly in Miami is most profitable for your future vacation rental?  To have a good investment in the rental market of your choice, all you have to do is dig deeper! So, before grabbing the phone, you can still push your luck and read first about submarket analysis!

Selecting the Optimal Property Type

Location, neighborhood, what’s next? It’s selecting a property type. The good thing about STR investments is all types can listed on Airbnb. If you’re investing in a short-term rental, you should know the optimal property type in EVERY STR MARKET!

Apartments and condos do best in some cities, while entire houses outperform the rest in some. Each property type option boasts each of its own distinct features that can attract the highest number of guests in your market (or submarket). 

So instead of tossing a coin to guide your decision, why not heed advice from rental analytics? “What is the Best Type of Property for Airbnb? (with 3 Sample Markets)” provides a clear methodical roadmap to assist you in making an informed decision!

Discover The Best Property Size

Just when you thought we’d stopped at property type, we’re introducing property size to the mix. This simply refers to the number of STR bedrooms. 

When we discuss this, you’ve got a range from 1 to 6 bedrooms to play with. But don’t let the result of a six-sided die roll determine the property size you’ll invest in.  Instead, tap into the wealth of Airbnb analytics to make an informed discovery. And just like property type, the number varies depending on the market.

Just remember this, “Size matters when it comes to (STR) bedroom!” Intrigued by the bedroom conundrum? Then master the numbers game from “What is the Best Number of Bedrooms for Airbnb?” It’s your key to unlocking valuable insights and a data-driven approach, ensuring you pick the perfect number of bedrooms for your specific location!

How To Create An Airbnb Listing?

As we have said earlier, Airbnb is the leading platform when it comes to home-sharing. Its share comprises an estimated 20% of the entire vacation rental market. So operating a short-term rental will not begin without its Airbnb debut. Here’s how you create a listing on the platform:

1. Create an Airbnb Account.
2. Complete your profile with a picture and verify your identity.
3. Click “Become a Host” to start listing your property.
4. Describe the details of your space. Specify the property type, number of bedrooms and bathrooms, and the number of guests it can accommodate.
5. Set your house rules, pricing, and the availability of your property.
6. Upload clear and well-lit photos that showcase your property’s best features
7. Create a catchy yet accurate property description
8. Choose your booking settings, whether you want to accept instant bookings or prefer to review guests beforehand
9. If you have any, add amenities and features such as wifi, kitchen, or hot tubs.

How To Set Nightly Rate?

You do not have to doubt yourself when setting a nightly rate. But we understand your concerns. Setting it too high might make potential guests skip your listing. When you go too low, you’ll only leave money on the table.

The great thing about our guide is we’re leading you to the most profitable location and property size and type in your market. But how much exactly should you charge?

STR real estate works best if you’re updated with market trends. For fluctuating revenue, occupancy rate, and nightly rate,  all you need is accurate and comprehensive data insights. And you can only rely on STR data analytics provided by the powerful Airbtics Dashboard. With this in hand, you can quickly respond to changing market conditions throughout the year by leveraging the LTM data in your area! 

With Airbtics Advanced Filters, you will know exactly how much you should charge your rental according to its location, property type, and the number of bedrooms.

STR Investment, For The Win!

Now that you know “What is STR in real estate?”, does your heart beat with excitement for the possibility? This investment may be new. However, investing in STR real estate has proven to be highly profitable. Especially, if you have found the right property, oh boy, you’re set for life!

But your success will depend on a lot of factors. You need to find the best short-term rental properties in the right location and with optimal market-specific attributes (property type and number of bedrooms). And this should be the least of your concerns! You already know how to find STR real estate investment that ensures financial security!

Got an eye on an STR property and wanna know how you can cash in? Then know its profitability with the most powerful Airbnb Income Calculator!

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How To Run Airbnb Remotely? A Comprehensive Guide For Remote Hosts

Don’t pass up a profitable opportunity simply because of distance. Learn how to run Airbnb remotely, and seize profits from afar!

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How To Run Airbnb Remotely? A Comprehensive Guide For Remote Hosts

how to run Airbnb remotely

How To Run Airbnb Remotely? A Comprehensive Guide For Remote Hosts

Don’t pass up a profitable opportunity simply because of distance. Learn how to run Airbnb remotely, and seize profits from afar!

How To Run Airbnb Remotely? A Comprehensive Guide For Remote Hosts

You have found a profitable property in a lucrative market. You’ve checked a reliable Airbnb Calculator, and the profit potential is astonishing. Everything is alright, the numbers are fine. Until you realized, the market is so damn far, and you’re now wondering how to run Airbnb remotely!

It’s like discovering a treasure chest filled with gems, and you simply cannot pass it up. Diversifying your portfolio while getting higher profit should not stop you! Take the distance as an opportunity to conquer new territories! 

And you won’t be blazing a new trail here. Managing an Airbnb remotely has been all the rage for quite some time. As a matter of fact, many investors have already reaped the rewards of this approach!

How To Manage Airbnb Remotely?

Managing an Airbnb property remotely can be both rewarding and challenging. As an Airbnb remote host, you’ve got a lot of things to cover. In this guide, we’ll explore essential strategies on how to run Airbnb remotely:

1. Set Your Local Team

Quality control in Airbnb significantly impacts guest reviews and repeat bookings. In fact, it is one of the ground rules of Airbnb hosting. And what any other way to ensure this than setting up your own local team of a cleaner, a plumber, and an electrician?

Cleaning and preparing your Airbnb rental for new guests after check-out is critical. Should there be a busted pipe or an electrical problem, having local professionals on standby can prevent significant property damage and ensure guest safety.

You might also want to consider including an Airbnb virtual assistant on your team or hiring a local rental property manager who will manage your property on the ground.

2. Explore Airbnb Co-Hosting

Another worthwhile option, Airbnb co-hosting involves partnering with a trusted person to assist you in various aspects of remote Airbnb management. A co-host can coordinate the services of the members of your local team. A co-host ensures that any cleaning or maintenance issues are addressed effectively and immediately. 

Having a reliable local team and trusted partner can provide Airbnb remote hosts some peace of mind. It reduces the stress and uncertainty associated with managing property issues from afar.

3. Keeping abreast of Airbnb Regulations

For all kinds of Airbnb investors and hosts, regulations are a hard pill to swallow. And in all forms of law, ignorance is no excuse, even if you’re hosting Airbnb remotely.

Airbnb regulations vary depending on the city. Local governments introducing new rules and meaning existing ones are just rubbing salt in the wound. Furthermore, violating these regulations can result in hefty fines or even the closure of your Airbnb.

Therefore, regularly checking the official websites of the local government where your property is located is the best way to keep informed. Aside from getting official updates, they regularly published other developments related to short-term rentals on their websites.

4. Join Online Communities

Talking over the fence with your neighbors about the latest happenings is not your only option. And this is physically impossible for you. Hosting Airbnb remotely and knowing your fellow Airbnb hosts’ concerns have never been so easy. Just check the internet, and you will find a space for short-term rental discussions.

Every city has its own Facebook groups specifically for its Airbnb market. You can also check out BiggerPockets. Online communities offer a sense of support. This allows any Airbnb remote host to connect with like-minded people who understand the unique challenges of managing Airbnb properties within a particular city. 

Members often share timely updates and offer valuable insights into local market conditions, trends, and even regulations.

5. Create An Airbnb Guest Book

An Airbnb guest book ensures that guests have all the necessary information during their stay. A guest book can be in digital or physical format, but we suggest providing a physical copy. It’s easily accessible, especially when placed in a prominent location in your rental.

A typical Airbnb guest book includes:

  • Welcome note
  • House Rules (Yes, you can set your own rules)
  • Contact Information (Yours, your co-host, your cleaner, etc.)
  • Wi-Fi Password (Include a troubleshooting guide)
  • Check-Out instructions

However, you can still add other information such as:

  • Local Recommendations
  • Emergency Information (Contact number of the police or fire department)
  • Appliance Manual
  • Public Transportation Options
  • Local Events Calendar
  • Housekeeping and Cleaning Guidelines

You can include other things in your Airbnb Guest Book. Your personalized recommendations can enhance the guest experience. A guest book also highlights your rules (your house, your rules). And if there should be an emergency, guests can easily contact concerned parties to raise their concerns.

6. Invest in Technology

Technological tools such as cameras and noise monitors can offer remote Airbnb hosts some peace of mind. 

Cameras give hosts a watchful eye on their properties. This remote surveillance provides a sense of reassurance and control. They’re just a staple of remote Airbnb management. They make sure that you’re updated with the condition of your rental.

Also, cameras can discourage inappropriate guest behaviors. But if worse comes to worst, recorded footage may come in handy should there be disputes.

Now that you have an eye, you’ll still have to have an ear on your property. Airbnb permanently bans parties, and there’s no other way to track this than installing a noise monitor. 

Noise monitoring systems can send alerts to the Airbnb remote host when noise levels surpass the defined thresholds. This enables hosts to intervene swiftly by contacting the guests or local authorities, if necessary.

7. Consider Self Check-in

Self check-in isn’t just about convenience. It’s a game-changer for both your guests and your local team (if you have one). 

Think of it as a round-the-clock key to exceptional guest experiences. Whether you’re welcoming travelers during the hustle and bustle of the day or in the quiet hours of the night, self check-in gives guests the freedom to arrive at their leisure.

With Airbnb smart locks, there will be no more fussing with schedules or feeling the pressure of travel hiccups. It’s all about putting the power in your guests’ hands, granting them the privacy and independence they crave especially during long trips. 

And for remote Airbnb hosts, self check-in is always ready to streamline operations and make your life a whole lot easier. 

8. Tap Into Airbnb Automation

Automation is also a universal lifesaver, especially for remote Airbnb hosts. Sync up your Airbnb calendar with other platforms, and voila, you’ve just thwarted those dreaded double bookings. Say goodbye to booking-related stress and hello to seamless reservation management.

Automation doesn’t just streamline your remote Airbnb management. It supercharges your guests’ experience. 

Imagine instant responses to their questions and messages, thanks to savvy chatbots and automated messaging systems. These digital wizards can tackle common queries, dish out smooth check-in instructions, and troubleshoot everyday issues, all at the speed of light. 

Important reminder: Automation is a tool to assist, but never lose your personal touch with guests!

Unlocking Airbnb Remote Hosting Success!

Not everyone hits the jackpot, so congratulations on discovering a profitable STR property.  And now that you know how to run Airbnb remotely, go for it! 

Managing an Airbnb remotely may not be as straightforward as it seems. But armed with a reliable on-site team and these technological advantages, you’re well-prepared to embark on remote Airbnb management!

So, don’t let distance deter you from seizing the opportunity to purchase a profitable STR property. It’s time to take that step with confidence, as success awaits in the world of remote Airbnb investment!

If you want to learn more, learn the insights of hosting Airbnb remotely from this couple!

Here’s how a host couple manages their Airbnbs remotely!

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What is Vrbo and How Does it Work for Vacation Rental Hosts?

What is Vrbo and how does it work? Discover the company that predates Airbnb and how it can help you with your STR game!

Home > Resources > Guides 

What is Vrbo and How Does it Work for Vacation Rental Hosts?

What is Vrbo and How Does it Work

What is Vrbo and How Does it Work for Vacation Rental Hosts?

What is Vrbo and how does it work? Discover the company that predates Airbnb and how it can help you with your STR game!

What is Vrbo and How Does it Work for Vacation Rental Hosts?

Airbnb is the undisputed king of the home-sharing economy. But every monarch is challenged from all fronts. And one of Airbnb’s mighty opponents is Vrbo.

Vrbo is the battle-hardened veteran of the industry, a pioneer that predates Airbnb’s rise to fame. In this article, let’s uncover the untold story of Vrbo and how it’s poised to challenge the mighty Airbnb for the throne of the home-sharing kingdom. We’ll answer the following questions:

  • What is Vrbo and How Does it Work?
  • How Is Vrbo Different than Airbnb?
  • Is Vrbo Safe?
  • How to List a Property on Vrbo? 

What is Vrbo and How Does it Work?

Vrbo is short for Vacation Rental By Owners. It is an online marketplace where property owners list their homes as vacation rentals that travelers can book. Like Airbnb, Vrbo manages these transactions as a bridge between hosts and guests. 

12 years before Airbnb’s grand entrance, Vrbo was founded in 1995 in Colorado. The man behind it was David Clouse, a retired teacher who wanted to rent out his ski condo as a vacation home in Breckenridge.

But here’s the twist: he had no patience for the traditional travel agencies and all the cumbersome intermediaries.

His determination to streamline the process became the fiery fuel behind this venture. It was the spark that ignited the creation of a groundbreaking rental site where property owners could proudly display their rentals 

And Vrbo was born because of this. Its birth paved the way for a new era of direct connections between homeowners and eager adventurers. If you think about it, Vrbo started the revolution in the world of vacation rentals.

Vrbo: Acquisitions and Global Expansion

In 2006, Vrbo’s journey took a new turn as HomeAway, a Texan vacation rental marketplace, acquired it. This partnership became the launching pad for Vrbo into the global arena while retaining its unique identity. With more capital at its disposal, it offered homeowners a bigger and better platform to showcase their properties.

Under HomeAway, Vrbo spread its wings beyond the US borders. It quickly became a household name for travelers seeking vacation rentals worldwide. This partnership between HomeAway and Vrbo did not just help homeowners profit. It also helped HomeAway secure its position as an industry leader as it gobbled up other vacation rental websites along the way.

A giant in online travel came into the mix in 2006, wanting to expand its horizon. The Expedia Group acquired HomeAway. Of course, the acquisition included Vrbo. Vrbo became an integral part of this conglomerate and was poised for even more significant developments.

Currently, Vrbo operates in 190 countries with 2 million short-term rental properties listed on the platform.

How Does Vrbo Work For Hosts?

Vrbo is an online vacation rental platform that also offers a wide range of accommodation options. Hosts can list on Vrbo a wide range of properties, from seaside and urban residences to urban apartments and posh houses. Later on, we’ll tell you how to create a Vrbo listing.

But your vacation rental listing will not only be offered exclusively on the platform. Remember when we said that it had been acquired by Expedia? Well, this acquisition has also benefited Vrbo hosts. 

Once you list an accommodation on Vrbo, your listing will spread on the extensive network of the Expedia Group. Vrbo provides your vacation properties wider exposure via Trivago, KAYAK, TravelMob, CanadaStays (if applicable), and websites under this conglomerate.  This increases your chances of booking requests from various platforms!

How Is Vrbo Different than Airbnb?  

Vrbo cannot seem to escape the shadows of Airbnb. While Vrbo is very similar to Airbnb, there are still key differences between the two. 

For starters, Vrbo only allows you to list an entire property. This means that guests can enjoy the entire place for themselves. On the other hand, Airbnb allows hosts a variety of property types. A medieval castle? A full-floor Manhattan penthouse? A cozy private room? Shared spaces? What have you? Hosts may even create a listing for their couch for all they (Airbnb and guests) care.

In this section, we’ll provide a list of how Vrbo is different from Airbnb:

Hosting Experience

Vrbo

Airbnb

Property Type and Variety

Specializes in entire home rentals only

Offers entire homes, private rooms, and shared spaces

Property Management and Hosting Fees

Offers options for flat annual fees of $ 499 or 5 % individual booking fees for hosts

Charges hosts a 3% fee, with variations for Airbnb Plus hosts

Profile and Review System

Lacks individual host and traveler profile pages;
single satisfaction rating

Requires comprehensive host and traveler profiles;
detailed reviews, and separate ratings for cleanliness, communication, and location

Superhost and Premier Partners

Has “Premier Partners” with specific criteria for hosts, including low cancellation rates and an average guest rating above 4.5

Has Superhosts with higher requirements, including an average rating of 4.8

Insurance for Hosts

Includes $1M liability insurance with bookings

Provides AirCover for Hosts, covering up to 1M worth of damage and liability

Cancellation Policies

Offers varied cancellation policies, including a “no refund” option

Also offers varied cancellation policies with a “no refund” option

At the end of the day, it’s all about contributing to the best vacation for short-term renters. From the check-in process to leaving reviews, which of these two vacation rental sites is for better guests?

Guest Experience

Vrbo

Airbnb

Pricing Transparency

Pricing details, including cleaning and service fees, revealed on the final listing page

Displays pricing information upfront on listing pages, offering more transparency

Website Interface

More advanced filters for a more personalized search

Map with nightly rates of each property

Payment Options

Permits monthly payments for those eligible through Affirm

Does not offer the same monthly payment option

Insurance for Guests

Provides a Book with Confidence Guarantee and optional protection plans

Prices and Fees

Charges guests 6-12% of the reservation cost

Charges service fee varies for both guests and hosts following a fee structure

Guest Reviews

Allows reviews up to one year after the visit

Requires guests to leave reviews within 14 days following check out date

Loyalty Programs

Prioritizes guest safety, participates in the One Key rewards program

No loyalty program

How to List a Property on Vrbo?

Imagine your rental as a performer wanting to be seen. So make them known to people looking for vacation rentals! A great way to shower your rental with attention is by listing it on Vrbo. Here are the very simple steps:

1. First things first, start by logging into your account. If you’re not part of the hosting community yet, create your account and get ready to open your doors to travelers.
2. At the top of the homepage, you’ll find the key to your hosting dreams: “List your Property”.  
3. Set the scene by sharing the details of your property (location, number of rooms). Introduce your rental to the world! Ready? Then, hit “Next
4. You’ll now see a checklist. Think of it as a guided tour to set up your listings. This includes:

    • ‘Details’: Tell the world about your unique property.
    • ‘Photos’: Capture your space’s essence in high-quality pictures.
    • ‘Security’: Ensure peace of mind for both you and your guests.
    • ‘Payment’: Set the financial stage for your hosting venture.
    • ‘Pricing’: Find the sweet spot between affordability and profit.

5. If you’re satisfied with your choices, take a deep breath and make it official. Click ‘Go live‘ to release your listing to the world!

Remember when we said that your Vrbo listing would appear on other Expedia websites? Though they’re a lot, the fact remains that your property will not appear on another important site, Airbnb. So, while you’re at it, why not create an Airbnb listing for your property to get all bases covered?

Is Vrbo Safe?

“How safe is Vrbo?” is a valid question. To answer your question, Yes, it is safe to use Vrbo! As a legitimate and well-established company, Vrbo is an American vacation rental platform that offers host and property managers a degree of safety. This company has been at the forefront of the vacation rental industry for decades. Its rich history brings a wealth of experience to the table, making it a trusted name among travelers and hosts alike. In fact, many vacation rentals had already made a significant profit from it way before Airbnb came to the scene 12 years later. 

Legitimate booking platforms like Airbnb have put a layer of security for all stakeholders. In the case of Vrbo, it offers secure and reliable payment processing. Vrbo sends the partner payout as early as one business day after checkout. Depending on your bank, the payout will reach your account roughly five to seven business days later. 

Vrbo also provides clear and transparent policies. This includes cancellation policies that allow you to set the terms for your vacation rental properties. You have control over your listings and can tailor them to your preferences. Vrbo offers property damage protection options, providing an extra layer of security for your valuable assets. These are safety nets for unforeseen incidents, offering peace of mind to rental owners.

Vrbo, A Worthy Player in the Home-Sharing Arena

Vrbo is a vacation rental platform with a legacy predating the rise of Airbnb. Currently backed by the Expedia Group, this formidable player has positioned itself as a strong challenger to Airbnb’s dominance.

As Vrbo continues to carve its path in the home-sharing economy, it is still poised for significant developments and has the potential to reshape the industry’s dynamics. Can it unseat Airbnb from the throne? This remains to be seen. However, its presence and contributions to the vacation rental market are undeniable, making it a noteworthy contender in this ongoing rivalry.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Submarket Analysis for Airbnb: Take Your Real Estate Game to the Next Level

Uncover hidden gems, boost revenue, and optimize your strategy today by doing an Airbnb submarket analysis!

Home > Resources > Guides 

Submarket Analysis for Airbnb: Take Your Real Estate Game to the Next Level

submarket analysis

Submarket Analysis for Airbnb: Take Your Real Estate Game to the Next Level

Uncover hidden gems, boost revenue, and optimize your strategy today by doing an Airbnb submarket analysis!

Submarket In Real Estate

You and your friend have both acquired Airbnb properties in the same city. But you’re wondering why the hell they earn far better than you? 

A lot of factors can play a role in this scenario. Did the two of you buy your investment properties in the same neighborhood? Do they have the same number of bedrooms? Did both of you buy apartments instead of houses? Answering these questions gives you insights into the real estate submarket! And who knows? Maybe they have done a submarket analysis!

An Airbnb submarket operates quietly beneath the surface, often hidden from the average investor’s view. Just like the real estate submarket in general, the short-term rental submarket opens up a whole new world of opportunity for investors. 

So if you’re looking to sharpen your investment strategy and unlock untapped potential, don’t make the same mistake twice! It’s time to delve into the submarket in real estate.

What is an Airbnb Submarket?

An Airbnb submarket is a smaller segment of the bigger Airbnb market. It can be a neighborhood, property size, and property type. 

Airbnb submarket analysis breaks comprehensive data into smaller and more manageable components. They are no different from a submarket in real estate. They also give investors a more focused analysis of various factors within the larger market.

This real estate submarket is composed of a more specific set of players. In other words, these players are your direct competitors! They not only provide the same offerings as you. They may also boast properties situated within the same neighborhood as yours.

How To Do An Airbnb Submarket Analysis? With Submarket Examples

In this part, you’ll learn how to do an Airbnb submarket analysis on the following levels:

  • Neighborhood
  • Property type
  • Number of bedrooms

But let’s start with your preferred Airbnb market first. Remember that cities are the Airbnb markets. So, type in the city name on the Airbtics’ Insights Tab

To show how this works, let’s use the Seattle Airbnb market as an example. 

With a staggering 4,498 active listings, Seattle undeniably boasts a thriving Airbnb market. Using the Insights Tool, you can also see the following key metrics:

  • Average Annual Revenue
  • Average Occupancy Rate
  • Average Nightly Rate
  • Revenue Potential by Property Size
  • Property Size Distribution
  • And many more!

However, if you currently own or are contemplating a short-term rental in the city, navigating through 4,498 listings may seem like sifting through noise. 

We will break this down via an Airbnb submarket analysis!

How to do Submarket Analysis for Airbnb Neighborhoods?

On the Airbtics Dashboard, you can do a submarket analysis by zooming in and exploring an Airbnb market. And get data updates in real-time. This feature empowers you to meticulously analyze different neighborhoods or geographical real estate submarkets

We assure you that you cannot find this feature elsewhere!

Pro tip: Areas with the reddest points signal listings with the highest revenue, so zoom into those! 

As you have seen from our example, the Seattle Airbnb market has an average annual revenue of $46,114. 

But swiftly zooming into the Queen Anne Airbnb submarket, the annual revenue is $58,328. An Airbnb submarket analysis has given us a whopping $12,214 or 26.49% difference!

You can effortlessly sketch out your own Airbnb submarket, whether or not it aligns with official geographical boundaries. You can do this via the Custom Market feature. Your own submarket will be “bookmarked” and saved in your account for you to closely monitor data trends!

How to do Submarket Analysis for Airbnb Property Types?

While neighborhoods are a common way to define submarkets, property types represent another layer of this segmentation. Airbnb property types refer to the various categories of accommodation – ranging from entire houses and apartments/condos to private and shared rooms.

You may remember that Seattle Airbnb Market has 4,498 active listings. But using the Advanced Filters, you can do an Airbnb submarket analysis according to property type. For this example, let’s see the entire homes and apartments/condos: 

The Seattle entire house submarket has 3,885 listings. They have an average annual revenue of $50,142 and an 81% occupancy rate. On the other hand, there are 470 Airbnb apartments/condos in Seattle. 

While these are a lot fewer, apartments/condos have a higher average annual revenue of $52,834. Their average occupancy rate may be lower, but only by 1%. They also charge $5 more with an average nightly rate of $170.

Seattle Entire House

  • Total Airbnb Listings: 3,885
  • Average annual revenue: $50,142
  • Occupancy rate: 81%
  • Nightly rate: $165

Seattle Apartment/Condo

  • Total Airbnb Listings: 470
  • Average annual revenue: $52,834
  • Occupancy rate: 80%
  • Nightly rate: $170
How to do Submarket Analysis for Airbnb Bedrooms?

The number of bedrooms also plays a key role in any real estate submarket. Investors and hosts use this number as a primary category tool to tailor their listings to specific market preferences. 

  • One-Bedroom Airbnbs – These offer a snug and intimate atmosphere, perfect for couples and solo travelers looking for budget-friendly accommodation.
  • Two-Bedroom Airbnbs – They offer a bit more flexible and comfortable accommodation. They often cater to small families and groups of friends. Two-bedroom units also cater to travelers requiring extra space.
  • Three-Bedroom and Up Airbnbs – They offer more spacious communal areas. They are well-suited for hosting extended families, larger groups of friends, and small company outings. The higher the number of bedrooms means higher nightly rates.

It’s just the same drill on the Airbtics Dashboard. You may use the Advanced filters to sort the data according to number of bedrooms.  The Airbnb submarket analysis provided us the following insights:

airbtics-logo-300x87
Property Size Annual Revenue Occupancy Rate Nightly Rate
Studio $39,827 85% $119
1-Bedroom $40,972 84% $129
2-Bedroom $56,975 82% $187
3-Bedroom $72,089 73% $266
4-Bedroom $86,339 70% $338
5-Bedroom $103,075 62% $443
5-Bedroom + $123,257 68% $571

In other words, you might charge more per night, but you might have fewer bookings over time. Finding the right balance between the number of bedrooms, nightly rate, and occupancy is key to optimizing your Airbnb rental strategy.

To know more about the complexities of this numbers game, read  “What is the Best Number of Airbnb Bedrooms?” where you’ll learn the optimal property size in your market.

Take your Real Estate Investment to the Next Level with Airbtics! 

After figuring out how submarket analysis works, you’re ready to take your real estate game to the next level! You will not commit the same mistake twice. You can now find the best of the best properties using Airbnb submarket analysis!

With Airbtics‘ powerful Insights Tool, you can dive deep into your chosen Airbnb market, exploring real-time data updates and discovering hidden gems within neighborhoods. The ability to zoom in and analyze Airbnb submarkets is a game-changer. This allows you to make more informed investment decisions with granularity.

What’s more? Airbtics app covers 54,000 global markets, so you can analyze any of your properties anywhere. Sign up and get free access to the following data:

  • Previous month’s data of annual revenue, occupancy rate, and nightly rate
  • The last twelve months (LTM) graph
  • YoY and MoM changes
  • Property size and property type supply
  • Top hosts and VRMs
  • Total number of listings
  • Amenities, cancellation policy, and extra pricing
  • Tailored region
  • And our free Airbnb Calculator – estimate returns with the most comprehensive Airbnb profit calculator

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb KPIs for hosts: Top 3 Essentials to Track & Calculate

Airbnb KPI: What are the most essential Airbnb KPIs? Uncover the secrets to profitability with RevPaL vs RevPaN vs RevPar!

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Airbnb KPIs for hosts: Top 3 Essentials to Track & Calculate

airbnb kpi

Airbnb KPIs for hosts: Top 3 Essentials to Track & Calculate

What are the most essential Airbnb KPIs? Uncover the secrets to profitability with RevPaL vs RevPaN vs RevPar!

No, you’re not in a chemistry class, and they are not alien words either! These are the Airbnb KPIs to assess the performance, profitability, and potential of different properties. 

We still admit that RevPAR, RevPAL, and RevPAR do sound so weird! But we guarantee that one of these words will stay with you like a funny best friend to have in the very competitive world of Airbnb!

Airbnb KPI: What is RevPAL?

You’ve probably heard RevPAL in the most viral post, “Airbnb Collapse”, which shook the hell out of Airbnb investors and hosts in the middle of 2023. AllTheRooms used RevPAL to identify the current status of the Airbnb industry.

Why did they use RevPAL? What’s RevPAL? 

Revenue Per Available Listing (RevPAL) allows Airbnb investors to evaluate the profitability of individual STR properties in a given market. This metric is invaluable when making investment decisions about acquiring new properties or managing existing ones within a particular Airbnb market. RevPAL helps investors gauge the viability of their ventures, enabling them to optimize their property portfolios efficiently.

Why Use RevPAL?

RevPAL not only provides a snapshot of the financial health of individual listings. It also allows you to zoom out and assess the overall health of an Airbnb Market.

You are an investor eyeing opportunities in the Airbnb market. RevPAL can be your financial lead, guiding your decision-making process. When in the acquisition or managing stage, it becomes your closest advisor. It’s one of the most reliable Airbnb KPIs to have a successful Airbnb rental investment.

How to calculate RevPAL?

It’s easy-peasy! All you need to do is divide the total revenue by the number of available listings.

However, how do you get the # of available listings in your market? You can get free Airbnb data via Airbtics. All you need to do is to type the city name and our system will generate the total # of Airbnb listings in your city.

airbnb kpi

Airbnb KPI: What is RevPAN?

Another key metric that you may want to learn about is RevPAN.

The Revenue per Available Night (RevPAN) is a magnifying glass designed to see the potential of individual listings. It gets the average revenue generated per listing for each night available for booking.

Remember, we’re in an industry where every night also holds potential for profit.  So RevPAN takes the night into consideration. 

Why Use RevPAN?

Think of it as your personal investigator, delving into the details of your listings. Unlike RevPAL, RevPAN is not concerned with the bigger picture. 

RevPAN is more interested in the performance of each property on each available night. 

It answers, “How well is my beachfront Airbnb performing in the summer months?” or “Is my cozy cabin booked more often in winter or during the holiday season?” This granular approach is the heart of RevPAN’s charm.

airbnb kpi

Airbnb KPI: What is RevPAR? (Revenue per Available Room):

RevPAR is a well-established metric in the hotel industry. It offers a comprehensive view of how well a hotel is filling its rooms and at what price. The calculation is straightforward: multiply the Average Daily Room Rate (ADR) by the Occupancy Rate (OR). The result is the revenue generated per available room during a specific period.

For hotels, RevPAR is the go-to metric. It accounts for both room rates and occupancy rates, making it a valuable tool for evaluating overall performance. However, its focus is on the collective performance of all available rooms within a hotel. 

Why Use RevPAR?

RevPAR can be the sidekick of Airbnb hosts with multiple private rooms. Hosts can efficiently evaluate the utilization of their room inventory, optimize pricing, and gain insights into overall property performance. You’ll know exactly where your property shines, and where it could use a little extra TLC. No more guessing games, just hard data to make those data-driven decisions.

airbnb kpi
How to get ADR & Occupancy Rate to Calculate RevPAR?

When calculating RevPAR, you need these two data: ADR and Occupancy Rate. The good thing is you can access these Airbnb data from Airbtics for Free! Log in to our app, and search for your city. In just 5 seconds, you can access its potential revenue, occupancy rate, and average daily rate. 

airbnb kpi

Cheat Sheet for the 3 Airbnb KPIs

airbtics-logo-300x87
--------- RevPAL RevPAN RevPAR
Best for Airbnb Investors & Hosts Airbnb Investors & Hosts Airbnb Hosts & Hotels
Formula Total revenue / # of available listings Total revenue / # of available nights Occupancy rate * Daily Rate
When to use it? To evaluate the profitability of your property To know the performance of each property on each available night To find out the collective performance of all available rooms within a hotel
RevPAN and RevPAL: Versatile Metrics for All Property Types
  • Airbnb investors and hosts use RevPAN and RevPAL. 
  • RevPAN and RevPAL are the metrics suitable for various property types, making them valuable tools for hosts, investors, and property managers in the vacation rental market.
  • These KPIs provide insights into the performance of individual listings or properties, helping you assess how efficiently you’re generating revenue and optimize pricing and occupancy rates.
RevPAR: Tailored for Multiple Private Room Accommodations
  • Airbnb hosts use RevPAR. 
  • It’s best suited for multiple private room listings within a property, where factors like occupancy rates and room rates significantly impact revenue generation.

Why Use Airbnb KPIs?

Airbnb KPIs are not just numbers on a page. They are powerful measuring sticks that can help transform how Airbnb investors and hosts operate. Individually, we cannot surely earn higher than hotels. But this does not mean that we do not mean business.

Airbnb KPIs are our besties on this journey. They not only look out for what’s best for us. They help us refine our strategies, make data-driven decisions, and enhance the quality of our Airbnbs. 

Remember the sage advice of Peter Drucker, “If you can’t measure it, you can’t improve it.” And who knows? You might improve so much that you can scale your business with the help of any of the three!

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What is Airbnb Listing? Step-by-Step Guide to Create a Listing on Airbnb

What is an Airbnb listing? It’s a rental platform that connects Airbnb hosts and travelers. Here’s a step-by-step guide to creating a listing on Airbnb.

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What is Airbnb Listing? Step-by-Step Guide to Create a Listing on Airbnb

What is Airbnb Listing

What is Airbnb Listing? Step-by-Step Guide to Create a Listing on Airbnb

What is an Airbnb listing? It’s a rental platform that connects Airbnb hosts and travelers. Here’s a step-by-step guide to creating a listing on Airbnb.

Now’s the time to put your investment property out there and enter the exciting world of vacation rentals! And making your Airbnb listing is the golden ticket to financial freedom!

In this article, you’ll learn about how listing on Airbnb works with the following details:

  • The definition of an Airbnb listing
  • Things that you need to list on Airbnb
  • How much does it cost to list your property on Airbnb
  • And how to create, edit, and manage your listing on the platform

What is Airbnb Listing?

Think of it as an online brochure. Your Airbnb listing showcases your property appeal on the platform. It’s the key to attracting travelers’ interest, offering a vivid snapshot of your rental’s best features, from its location to its amenities. Think of it as the make or break for a successful booking by travelers looking for short-term accommodation.

It is not just an ad. It’s your doorway to earning passive income through hosting. Any property type can have an Airbnb listing, whether it’s a shared room or an entire place – the possibilities are endless!

What is Airbnb Listing

Before jumping into the steps on how to create your listing on Airbnb, let’s first talk about the things you need and the cost of listing your property on Airbnb.

Sound exciting? Let me take you there!

What do you need to list on Airbnb?

Creating an Airbnb listing makes one an Airbnb host.  Listing involves providing detailed information and highlighting its features to attract potential guests. Below are the things you’ll need to create a new listing on the Airbnb platform.

  • Airbnb Property Details

“Where to go next?” This is a popular question for frequent travelers who are thinking of where to go on their next travel escapades. For Airbnb hosts, this is a good opportunity to showcase your property details and lure them to what Airbnb experiences you can offer.

When creating your listing, include the property type. It may be a chic private room, a charming entire home, or a swanky apartment. Give them the deets on the generous square footage and the count of bedrooms and bathrooms. Make the description of your property shine through your listing!

Notice how this description hits all the spots:

What is Airbnb Listing
2. Airbnb Amenities

Make your listing stand out with a list of amenities that’ll curate the guests’ Airbnb experiences. We’re talking the basics like plush towels, crisp linens, and lightning-fast Wi-Fi for staying connected.

 But don’t just stop there! If you have these, include a fully equipped kitchen ready for culinary adventures, a shimmering swimming pool to soak up the sun, and a bubbling hot tub for those starry nights. Your guests will feel like stepping into a paradise with these incredible features!

3. Airbnb House Rules

If you’re anxious about negligent guests, stop worrying because you can set the house rules! Talk about no-smoking zones and the pet protocols to keep your place smelling and looking fresh. 

Highlight the sweet moments of silence during designated periods and remind them of the permanent ban on partying. These rules aren’t about cramping anyone’s style. They’re the secret sauce to creating a cozy and respectful atmosphere for the entire neighborhood!

4. Pricing

This is perhaps the most exciting part of creating a listing! Set your nightly price and remember to base it on a few factors. These include the property’s type, size, location, and available amenities. Nightly rates are also flexible and can be adjusted based on seasonal demands. How exciting is that? 

If you find it challenging to set your Airbnb pricing, then you can check this guide on Airbnb Price Optimization.

5. Availability

Imagine your property’s availability as an up-to-date calendar, ready for guests to check and plan their dream getaway effortlessly. As a host, you have to keep it up to date.

Block out the dates when your property is unavailable and open your doors wide to welcome guests. This isn’t just about being organized. It’s about being a gracious host and helping your guests plan their perfect stay with ease.

6. Photographs

Upload stunning, high-quality images of your property that capture its unique charm and welcoming atmosphere. Pictures are the windows to your Airbnb listing’s soul, so make sure they shine bright and leave a lasting impression!  A picture paints a thousand words, but words still matter. Don’t forget to include descriptive photo captions to guide the guests’ prying eyes as they browse vacation rental listings!

Read more: How to Promote Your Airbnb Listings the Right Way: 10 Effective Strategies & More!

What Does It Cost To List On Airbnb?

Creating your Airbnb listing won’t cost you a dime! That’s right, becoming a host is free, and you can dive into the world of hospitality without any upfront charges. However, there’s an Airbnb service fee.

What is Airbnb Service Fee?

The Airbnb service fee is a percentage that hosts and guests pay for using Airbnb to book stays. It is a percentage of the total booking amount that covers the behind-the-scenes magic. This includes top-notch customer support and spreading the Airbnb services through marketing. Airbnb offers 2 different fee structures:

1. Split Fee

Host’s Fee: As a host, you’ll pay a service fee of around 3% to 5%. The exact percentage depends on your country and the cancellation policy you choose.

Guest’s Fee: Guests are also part of the party, contributing a service fee of about 14.2% of the booking subtotal. Keep in mind, that these percentages can vary a bit based on location.

2. Host-Only Fee

Hosts are charged a host-only fee, usually set at 14-16% of the booking subtotal. This fee is deducted automatically from the host’s payout.

So, while listing your place is free, just remember there’s a little sharing involved when it comes to the booking fee. But hey, it’s all part of the Airbnb adventure!

Step-By-Step Guide on Creating your Airbnb Listing

Now that you have the knowledge on what to prepare and how much it costs for an Airbnb listing, let me share with you briefly the steps on how to create a listing on Airbnb

  • Creating Your Airbnb Listing

Here is a step-by-step guide on how to list your property on Airbnb:

1. Create an Airbnb Account.
2. Complete your profile with a picture and verify your identity.
3. Click “Become a Host” to start listing your property.
4. Describe the details of your space. Specify the property type, number of bedrooms and bathrooms, and the number of guests it can accommodate. 
5. Set your house rules, pricing, and the availability of your property.
6. Upload clear and well-lit photos that showcase your property’s best features
7. Create a catchy yet accurate property description
8. Choose your booking settings, whether you want to accept instant bookings or prefer to review guests beforehand
9. If you have any, add amenities and features such as wifi, kitchen, or hot tubs.

  • Editing your Listing

The Good news is editing your listing takes way less of your time with only 2 steps:

1. Click the listings you want to change.
2. Edit under the listing details.

To Sum up…

Congratulations! You are now fully equipped to create your Airbnb listing and make a good cash flow from your investment. Being an Airbnb host has a long checklist and you’ve just crossed out one of the most important items: it’s to learn about Airbnb listing and set it up for a successful Airbnb hosting.

Would you like to see how other Airbnb listings in your area are doing? Easy-peasy man!

You can check it out by typing in your city or neighborhood on Airbtics, and you’ll get the most comprehensive database of Airbnb listings with their annual revenue and Airbnb ratings. This is a great start to analyze your competitors and see what’s going on out there!

What is Airbnb Listing

If this isn’t your goal, then you can also start by discovering how much can you earn in Airbnb with this free Airbnb Proft Calculator!

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Find unsaturated neighborhoods with the highest occupancy history.

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What Is The Average Airbnb Stay Length?

What Is The Average Airbnb Stay Length?: Understand the average stay length and use it to your advantage. Get some insightful tips from this article!

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What Is The Average Airbnb Stay Length?

Average Airbnb stay length

What Is The Average Airbnb Stay Length?

Understand the average stay length and use it to your advantage. Get some insightful tips from this article!

In the dynamic world of short-term rentals, knowing the Airbnb average length of stay isn’t just a matter of curiosity. It is a pressing necessity. In fact, you’re only navigating this industry blindfolded without a firm grasp of this critical metric.

The average Airbnb stay length is more than just filling up your booking calendar. It’s about strategically planning your approach. This includes optimizing amenities, pricing, and guest experiences. All of these can make or break your success in this competitive market.

In this article, we will delve into the importance of using accurate and comprehensive short-term rental data analytics that can answer this question.

Average Airbnb Stay Length, Explained

The average stay length refers to the typical number of days that guests spend at an Airbnb property when they book a stay. The average comes from data on the durations of stays at various Airbnb properties, including houses, apartments, and other types of accommodations. To find it, divide the total number of nights spent by all guests by the number of bookings.

What is The Average Airbnb Stay Length?

The average stay length is less between 2-7 days. Location is a dominant factor influencing an Airbnb stay length. In bustling metropolitan areas, guests often opt for an overnight to 3-night stay. On the other hand, it’s not unusual for guests seeking relaxation to extend their stay to a week or more in quieter, more remote destinations. 

Does Property Type Influence the Average Stay Length? 

The type of property listed on Airbnb can significantly influence stay duration. It shapes the preferences and expectations of guests. Let’s delve deeper into how different property types impact the Airbnb stay length:

  • Entire Homes and Apartments

Guests choose entire homes and apartments for added comfort, privacy, and amenities they offer. For example, a kitchen can encourage longer states as guests can prepare their meals themselves. This seemingly basic amenity makes their extended trips more cost-efficient. 

This accommodation is ideal for families, groups of friends, or individuals seeking a homey experience.

  • Private Rooms and Shared Spaces

Private Rooms and shared spaces are commonly booked for overnight stays. These types of accommodation target travelers on shorter trips who may only need a place to spend the night. 

However, it is not unusual for travelers to extend their stay in private and shared spaces. Some of them may offer a few amenities like kitchens and common areas, which allow the guests to comfortable experience during their stay.

How Can I Leverage the Average Airbnb Stay Length

Let’s explore how you can maximize the average stay length through strategic approaches that include the following:

Pricing Strategy

If you notice that the average stay length in your neighborhood is 7 days, you can offer a discount for stays beyond 1 week. By doing so, you’re effectively targeting a segment of the guests looking for extended accommodations. This can result in higher occupancy rates for longer durations, which might fill your rental during off-peak periods when shorter stays might be less common.

Setting Minimum Stay Requirements

Set minimum stay requirements to align with the average stay length in your area. This can significantly contribute to the success and efficiency of your Airbnb rental. By setting a minimum stay requirement, you can reduce the frequency of guest turnover. This means fewer check-ins, check-outs, and room cleaning. This can streamline your operations and reduce the associated labor costs.

Remember, you’re in a business that can have varying income depending on the season. Setting minimum stay requirements can also provide a level of certainty to your cash flow. With longer stays, you can anticipate revenue more accurately. This makes it easier to manage finances and resources effectively. This stability can be valuable during seasonal fluctuations. 

Enhancing Your Property

Extended-stay guests are a diverse group. They can range from remote workers and digital nomads to families on vacation or individuals relocating for work. Offering a fully equipped kitchen caters to a wide range of needs. 

Remote workers and long-term travelers appreciate the ability to cook their meals, which can be both cheaper and healthier. Families benefit from the convenience of preparing food for picky eaters or accommodating dietary restrictions. A fully equipped kitchen makes your property more appealing to a broader audience.

Adding amenities like a hot tub or swimming pool can be a significant draw for guests seeking relaxation during extended stays. After a long day of work or exploration, having a place to unwind and rejuvenate contributes to a positive guest experience. It can also differentiate your property from others in the area, making it a memorable choice for potential guests.

Find the Average Airbnb Stay Length with Data Analytics!

As we’ve explored, the average Airbnb stay length is influenced by location and property type. It’s the pivot point around which you can craft your pricing strategy, set minimum stay requirements, and enhance your property to cater to diverse guest needs.

o, here’s the bottom line: If you want to thrive in the competitive world of short-term rentals, you can’t afford to navigate it blindfolded. You need the power of accurate and comprehensive short-term rental data analytics on your side.

Airbtics Dashboard provides you with the tools and insights you need to harness the potential of the average Airbnb stay length. Whether you’re a host looking to optimize your property or an investor seeking the most promising locations, Airbtics has you covered for all the STR Data that you need!

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What Does Airbnb Mean? A Guide to the Most Skeptical Investors

What does Airbnb mean? It depends on whom you ask this question. Discover the multifaceted meaning of Airbnb by reading this article!

Home > Resources > Guides 

What Does Airbnb Mean? A Guide to the Most Skeptical Investors

What Does Airbnb Mean

What Does Airbnb Mean? A Guide to the Most Skeptical Investors

What does Airbnb mean? It depends on whom you ask this question. Discover the multifaceted meaning of Airbnb by reading this article!

What Does Airbnb Mean? Affordable Accommodation for Travellers

Airbnb is a pioneering online service platform that allows property owners to share their spaces with travelers seeking cheaper accommodations. From a cozy room to an entire property like a house or an apartment, Airbnb offers a vast variety of options to travelers worldwide.

What Does Airbnb Mean

Airbnb stands for “Air Bed and Breakfast.” And how the company got its name is just as interesting. 

The origin of the term Airbnb dates back to 2007 when its founders (Joseph Gebbia and Brian Chesky) decided to rent out a lounge room in their San Francisco apartment to the artists attending a design conference. 

All these two visionary minds could offer were 3 air mattresses for a good night’s sleep and breakfasts in the morning. They called it “Air and Breakfast,” a name that would be shortened to a catchier “Airbnb.” Little did they know that this small and quirky endeavor would revolutionize the travel and hospitality industry.

From Air Mattresses to a Global Empire

Brian and Joseph had an idea that would forever change the way the world thought about travel and accommodation. And yet, the initial days of Airbnb were not without challenges. Brian and Joseph had to entice the interest of their target market with a clever tactic.

Setting and Expanding the Online Market

The 2 founders reached out to the attendees of the design conference. They offered them a place to stay with a promise of a homey experience. They even took professional photos to make their apartment look appealing. 

This simple yet innovative approach set the foundation for the company’s future success. In fact, this business model that they had in 2007 is pretty much what most Airbnb hosts have been doing since.

In 2008, Nathan Blecharczyk joined the team and brought computer programming expertise to this promising company. The trio launched their website in 2009 and expanded beyond 3 humble air beds. They introduced hosts to the idea of renting out their entire homes or spare rooms, providing a diverse range of accommodations to travelers.

$112 Million Investment

The turning point came in 2011 when Airbnb secured a $112 million investment from Andreessen Horowitz, a venture capital firm. This infusion of capital allowed the company to scale its operations and take its platform worldwide. Airbnb launched a dedicated mobile app, making booking accommodations easier than ever before. 

Airbnb Now

In September 2021, Airbnb became a publicly traded company. Its market capitalization 2 years after was $87.07 billion. With a whopping more than 5 million active listings in 220 countries, Airbnb has truly become a global platform for unique travel experiences. 

How Does Airbnb Make Money?

Many hosts find the Airbnb platform appealing because they only have to cover a fixed 3% service fee based on the booking subtotal. This subtotal includes their nightly rate, as well as additional charges they may apply to guests like cleaning fees, However, the subtotal does not include Airbnb fees and applicable taxes. 

On the flip side, guests shoulder a service fee of approximately 14% of the booking subtotal. 

What Does Airbnb Mean? Lucrative Opportunities for Real Estate Investors

If you’re a skeptical real estate investor, it’s perfectly understandable to approach new opportunities with caution. After all, your investments are not just financial endeavors. They can make or break your financial security. But we’ll address the concerns that might be holding you back from considering Airbnb as a lucrative addition to your real estate investments.

1. Diversify Your Real Estate Portfolio with Airbnb

Diversification is an important factor in smart investing. Airbnb allows you to widen your real estate portfolio beyond traditional long-term rentals. By doing Airbnb, you tap into a market that has a consistent demand from travelers such as tourists and business professionals. This diversification can help mitigate risks and increase your income potential.

2. Higher Profit Margins and Cash Flow

This is why some investors have shifted to Airbnb. It has the potential for higher profit and consistent locations. Unlike traditional rentals, Airbnb units can price premium rates, especially in desirable locations such as tourist spots and business centers. With careful pricing and effective management, you can maximize your returns and maintain a steady stream of income.

3. Tax Benefits and Deductions

Investing in Airbnb properties can offer substation tax advantages that you won’t see in other real estate investments. Expenses related to your Airbnb business such as maintenance and utilities can be tax-deductible. See the other items that can be written off and how to file them from “A Guide to Writing Off Airbnb Expenses.”

4. Flexibility and Control

If you are skeptical about property management, rest assured that Airbnb provides an unparalleled level of flexibility and control. You decide when to host guests and set your rental rate as you see fit.

What Does Airbnb Mean? Potential Risks

While Airbnb may offer enticing opportunities to real estate investors, it’s crucial to approach this type of investment with a degree of caution. This time, a little bit of skepticism can become handy when it comes to protecting your investments. 

1. Regulatory Uncertainty

One of the most significant concerns surrounding Airbnb investment is the ever-changing regulations. Local governments are still adapting to the Airbnb landscape. This means that rules regulating Airbnb properties can vary widely from one city to another. This is why it’s essential to research and comply with local regulations to avoid potential legal issues.

2. Active Management

While Airbnb offers flexibility and control over your property, it also requires active management. Hosting guests, coordinating check-ins and check-outs, cleaning, and maintenance demand time and effort. Investors should consider whether they have the resources and willingness to manage the daily operations of running an Airbnb. If not, they’ll have to hire property managers, which can diminish their profits.

3. Income Variability

The income that an Airbnb makes can fluctuate based on seasonal demands or economic conditions. So, be prepared by building financial reserves for periods of low occupancy and reduced income. They can affect cash flow.  

4. Property Security and Liability

Hosting strangers on your property carries inherent security risks. While Airbnb provides host damage protection, it is still better to ensure your property to minimize potential security issues. Hosts are also responsible for any liability in case of accidents or injuries on their properties.

What Does Airbnb Mean? Providing Excellent Service

Airbnb hosting is the business of renting out your property to guests on a short-term basis through the Airbnb platform. Individual property owners as well as full-fledged companies can use Airbnb hosting as a way to earn income by offering accommodation from a wide range of options. These include a cozy spare room or an entire property. 

What are Airbnb Hosting Requirements?

Before starting as an Airbnb host and opening your doors to your short-term rental business, it’s essential to understand the hosting requirements. In this section, we’ll discuss the key prerequisites and standards set by Airbnb to ensure that guests will have an enjoyable stay.

1. Hosts are responsible for confirmed bookings and a reliable check-in process.
2. Hosts are expected to be readily available to attend to any guest’s questions and unforeseen issues before or during their stay.
3. The listing page should reflect an accurate description of the place at the time of the reservation. Make sure that guests will be able to enjoy the listed features and amenities from their check-in to check-out.
4. Before check-in, the place should be thoroughly cleaned and free from any health and safety hazards.

While Airbnb is strict about these rules, they will still reach out to hosts to clarify if such violations occur. 

How Do You List Your Property on Airbnb?

Here is a step-by-step guide on how to list your property on Airbnb:

1. Create an Airbnb Account.
2. Complete your profile with a picture and verify your identity.
3. Click “Become a Host” to start listing your property.
4. Describe the details of your space. Specify the property type, number of bedrooms and bathrooms, and the number of guests it can accommodate. 
5. Set your house rules, pricing, and the availability of your property.
6. Upload clear and well-lit photos that showcase your property’s best features
7. Create a catchy yet accurate property description
8. Choose your booking settings, whether you want to accept instant bookings or prefer to review guests beforehand
9. If you have any, add amenities and features such as wifi, kitchen, or hot tubs.

How Do Hosts Get Paid on Airbnb?

Hosts have various payout options such as PayPal, Fast Pay, Payoneer debit cards, Western Union, and bank transfers. The availability of the said options will depend on the host’s location. Hosts can select their preferred method in the “Payment & Payouts” section of their Airbnb accounts.

Airbnb will release the payment minus their fees within 24 hours following the guest’s check-in date.

What Does Airbnb Mean? Endless Possibilities

The rise of Airbnb has undeniably reshaped the landscape of real estate investment. What airbnb stands for is the contradiction between promising opportunities and potential pitfalls to investors. It will depend on what you’re willing to give it. The journey from a modest San Francisco apartment with only air mattresses to a global empire valued at over $91 billion is a testament to Airbnb’s disruptive power and appeal.

For skeptical real estate investors, it’s crucial to weigh the advantages and challenges of investing in Airbnb rentals. On the positive side, diversifying your real estate portfolio via AIrbnb can provide consistent income streams, higher profit margins in desirable locations, and attractive tax benefits. The flexibility and control investors can enjoy should not go unnoticed. This allows them to tailor their hosting experience to their preferences.

Airbnb can be a lucrative addition to your real estate investments. But unlike any other investment, it requires careful consideration, proactive management, and a willingness to adapt to changing circumstances. With the right strategy and discipline, Airbnb can indeed be a golden opportunity in this modern world of real estate.

Want to start an Airbnb business? Start with an Airbnb analyzer tool!

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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