fbpx
🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!
Categories
Airbnb Investment All About Airbnb

Best Places to Airbnb in Florida

Best Places to Airbnb in Florida: Looking for the best profitable Airbnb areas in Florida? Check out the top cities where investors get the highest occupancy rates and more!

best places to aribnb in florida

Looking for the best profitable Airbnb areas in Florida? Check out the top cities where investors get the highest occupancy rates and more!

Before investing in a property in Florida, it’s important to analyze your options and gauge your profitability based on Airbnb’s key metrics. In this article, we’ll feature the top 10 best areas for Airbnb in Florida along with their respective occupancy rates, monthly & yearly revenue, average daily rates (ADRs), and so much more!

Best Places to Airbnb in Florida: Airbnb’s Trending Cities 

Based on a recently released article about Airbnb’s top cities this summer of 2023, guests have continued to search for domestic summer destinations in the USA.. This simply means that vacationers are super ready to spend money and have fun under the sun! The travel demand has continuously recovered in comparison to pre-pandemic data. 

Here’s an interesting fact about the domestic: In the top Airbnb cities in America: 6 out of 10 cities are located in Florida!

Is Airbnb Profitable in Florida? 

Based on our recent Airbnb statistics in Florida, particularly in the East Coast area, an​​ average 1 BD / BA condo has a steady 52% occupancy rate and can generate $2,950 monthly! Short-term rentals in Florida can definitely be a source of passive income due to the high number of tourists visiting annually.

To cut the story short, Airbnb is definitely profitable in Florida! For instance, based on an Airbnb income calculator, you can earn a whopping $108,888 annually in Cape San Blas alone! Known as America’s best state park, this city attracts high tourism as it boasts 1,900 acres of preserved wilderness.

Not yet convinced? Feel free to listen to our complete walk-through on how to start your rental arbitrage journey in Florida.

Rental Arbitrage in Florida

If you want to start an Airbnb investment in Florida but can’t purchase your own property yet, don’t worry. You can still earn a passive income via Rental Arbitrage!

This is the practice of renting out properties for the sole purpose of sub-letting them on platforms such as Airbnb or HomeAway.

It may be a challenge to find landlords for Airbnb rental arbitrage since there are certain restrictions in other areas and other landlords simply do not allow it due to insurance policies. In addition to this, you also have to consider major factors in starting a rental arbitrage business in your preferred city. This includes rules & regulations, where to find the most profitable area, & how to find rental arbitrage properties.

Is Rental Arbitrage Legal in Florida?

Rental Arbitrage in Florida is certainly legal and there are ways to predict your listing’s profitability. For instance, a short-term rental analytics tool can assure your nightly revenue of $125 for a studio-type apartment in Miami with a steady occupancy rate of 51%. These Airbnb key metrics should be strictly monitored as your business’ profitability depends on them!  

Best areas for airbnb in florida

Given the fact that Florida is an ideal investment destination for property investors, you can always have the option to do Rental Arbitrage in Florida and earn money while you’re saving up to own a property.

Secure Your Download

Airbnb & Real Estate Insights, Top 50 Cities!

Top 10 Most Profitable Airbnb Locations in Florida

Florida offers huge investment opportunities for property investors. So, we went ahead and did the heavy work for you! Oftentimes, the struggle is targeting an entire city but missing out on a particular neighborhood that has an even greater chance of profitability! So, be prepared as we show you only the best of the best places to Airbnb in Florida!

Best areas for airbnb in florida

Using Airbtics’ market analysis, we were able to get a grasp of Airbnb demand in the entire state accurately and filtered the top 10 most profitable Airbnb locations in Florida:

1. Key West
short-term rental historical data
  • Occupancy Rate: 47%
  • Annual Revenue: $80,311
  • Average Daily Rate: $407

Based on Airbtics’ analytics tool, the best neighborhood in this area is Duval Street. It has an average occupancy rate of 30%. An Airbnb host in this neighborhood can earn an average daily rate of $541!

2. Four Corners
Best areas for airbnb in florida
  • Occupancy Rate: 52%
  • Annual Revenue: $48,768
  • Average Daily Rate: $245

Based on Airbtics’ analytics tool, the best neighborhood in this area is Windsor Hills. It has an average occupancy rate of 58%. An Airbnb host in this neighborhood can earn an average daily rate of $240!

3. Cape San Blas
Best areas for airbnb in florida
  • Occupancy Rate: 58%
  • Annual Revenue: $84,141
  • Average Daily Rate: $385

Based on Airbtics’ analytics tool, the best neighborhood in this area is Salinas Park. It has an average occupancy rate of 48%. An Airbnb host in this neighborhood can earn an average daily rate of $350!

4. Cape Coral
Best areas for airbnb in florida
  • Occupancy Rate: 50%
  • Annual Revenue: $40,992
  • Average Daily Rate: $223

Based on Airbtics’ analytics tool, the best neighborhood in this area is Pelican. It has an average occupancy rate of 49%. An Airbnb host in this neighborhood can earn an average daily rate of $239!

5. Fort Lauderdale
Best areas for airbnb in florida
  •  Occupancy Rate: 42%
  • Annual Revenue: $30,881
  • Average Daily Rate: $199

Based on Airbtics’ analytics tool, the best neighborhood in this area is Victoria Park. It has an average occupancy rate of 35%. An Airbnb host in this neighborhood can earn an average daily rate of $151!

6. Miami
Best areas for airbnb in florida
  • Occupancy Rate: 41%
  • Annual Revenue: $27,972
  • Average Daily Rate: $187

Based on Airbtics’ analytics tool, the best neighborhood in this area is Downtown Miami. It has an average occupancy rate of 36%. An Airbnb host in this neighborhood can earn an average daily rate of $237!

7. Daytona Beach
Best areas for airbnb in florida
  •  Occupancy Rate: 51%
  • Annual Revenue: $31,803
  • Average Daily Rate: $171

Based on Airbtics’ analytics tool, the best neighborhood in this area is Ortona. It has an average occupancy rate of 44%. An Airbnb host in this neighborhood can earn an average daily rate of $135!

8. Orlando
Best areas for airbnb in florida
  • Occupancy Rate: 43%
  • Annual Revenue: $18,935
  • Average Daily Rate: $120

Based on Airbtics’ analytics tool, the best neighborhood in this area is Delaney Park. It has an average occupancy rate of 66%. An Airbnb host in this neighborhood can earn an average daily rate of $126!

9. Mexico Beach
Best areas for airbnb in florida
  •  Occupancy Rate: 61%
  • Annual Revenue: $67,637
  • Average Daily Rate: $255

Based on Airbtics’ analytics tool, the best neighborhood in this area is Highland View. It has an average occupancy rate of 63%. An Airbnb host in this neighborhood can earn an average daily rate of $266!

10. Walton County
Best areas for airbnb in florida
  •  Occupancy Rate: 57%
  • Annual Revenue: $71,979
  • Average Daily Rate: $339

Based on Airbtics’ analytics tool, the best neighborhood in this area is Miramar Beach. It has an average occupancy rate of 63%. An Airbnb host in this neighborhood can earn an average daily rate of $271!

STR Analytics to find the Best Places to Airbnb in Florida!

Now that you have a deeper understanding of which particular area to target in Florida and some of the major Airbnb metrics to consider, don’t miss out on greater opportunities! Since Airbnb is constantly changing in every city in the world, it is crucial not to make decisions based on wild guesses. The data points mentioned in this article such as Airbnb occupancy rates per city, annual revenue, and average daily rates should be your basis for investing in properties in Florida – or any other cities with high occupancy rates!

Hence, an accurate data analytics tool can help your business stand out among your direct competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city. With the help of our all-in-one analytics service, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features. Try Airbtics today and think of long-term profitability!

Explore The Most Profitable Airbnb Locations in Florida

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.

Annual Airbnb Revenue in West linn oregon, USA

West Linn, Oregon| Airbnb Market Data & Overview | USA West Linn, Oregon Airbnb Market Data & Overview USA Is it profitable to do Airbnb …

Read More →
Annual Airbnb Revenue in Brookline massachusetts, USA

Brookline, Massachusetts| Airbnb Market Data & Overview | USA Brookline, Massachusetts Airbnb Market Data & Overview USA Is it profitable to do Airbnb in Brookline, …

Read More →
Annual Airbnb Revenue in Lewistown montana, USA

Lewistown, Montana| Airbnb Market Data & Overview | USA Lewistown, Montana Airbnb Market Data & Overview USA Is it profitable to do Airbnb in Lewistown, …

Read More →
Annual Airbnb Revenue in Glasgow city, UK

Glasgow City| Airbnb Market Data & Overview | UK Glasgow City Airbnb Market Data & Overview UK Is it profitable to do Airbnb in Glasgow …

Read More →
airbnb property investment Niagara Falls
Is Airbnb property investment lucrative in Niagara Falls, Ontario?

airbnb property investment Niagara Falls Niagara Falls is known for offering unique views of the waterfalls as well as a variety of outdoor activities for …

Read More →
Washington airbnb rules
Airbnb Rules in Washington

Are you looking to invest in an Airbnb property in America? If you have chosen Washington in particular, then you’re on the right track. Washington …

Read More →

Categories
Airbnb Investment All About Airbnb

Florida Airbnb Rental Yield data

Florida Rental Yield Hotspots

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

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

Available Dataset for purchase

Categories
Airbnb Investment All About Airbnb

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

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

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

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

    Why invest in Short-term Rentals?

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

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

    fractional vacation home ownership

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

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

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

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

    fractional vacation home ownership

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

    Looking for Partial vacation homeownership in the US & Mexico?

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

    fractional vacation home ownership

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

    how much can you make on airbnb

    Investing via fund? 

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

    fractional vacation home ownership

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

    Looking for Shared ownership of Luxury vacation homes? 

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

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

    Is reAlpha a good investment? 

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

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

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

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

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

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

    Conclusion 

    short-term rental investment fund review

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

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

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

    Categories
    Airbnb Investment All About Airbnb

    Best Cities for Airbnb investment in 2022 Europe

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

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

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

      Best cities for Airbnb investment in 2022- Europe

      1. Ballstad, Norway

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

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

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

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

      2. Shanklin, England

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

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

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

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

      3. Athens, Greece

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

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

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

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

      Airbnb data
      4. Marseille, France

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

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

      Marseille
      Marseille STR

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

      5. Funchal, Portugal

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

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

      Best Cities for Airbnb investment in 2022 Europe
      Funchal STR

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

      Categories
      Airbnb Investment All About Airbnb

      Best Cities for Airbnb investment in 2021


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

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

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

         

        Best cities for Airbnb investment in 2021

        Incline Village, NV

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

        best cities for airbnb investment in 2021 incline village

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

        Sea Isle City, New Jersey

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

        best cities for airbnb investment in 2021 sea isle city

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

        Fredericksburg, TX

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

        best cities for airbnb investment in 2021 Fredericksburg

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

        Airbnb data
        Leavenworth, Washington

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

        best cities for airbnb investment in 2021 leavenworth

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

        St. George, Utah

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

        best cities for airbnb investment in 2021 st. george

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

        FIND STATS FOR YOUR CITY – CLICK HERE

        Read More – How much can you make on Airbnb

        Categories
        Airbnb Investment All About Airbnb

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

        Best Cities to Start Airbnb Rental Arbitrage Business

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

        The Airbnb business is booming

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

        Rental Arbitrage is booming
        dashboard of best cities to start airbnb

        What is Airbnb Rental Arbitrage?

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

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

         

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

          

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

        man jumping

        How to identify profitable rentals for rental arbitrage?

        Make more informed decisions with the power of accurate data.

        short term rental data use case for property investors

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

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

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

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

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

        Stay up-to-date with relevant industry trends.

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

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

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

        Airbnb Analytics dashboard image

        Tips to do market research effectively and correctly

        Use competitive and intelligent data to your advantage.

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

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

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

        best cities to start airbnb - redwood

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

        Stay up-to-date with relevant industry trends.

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

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

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

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

        best cities to start airbnb - airbtics

        Best Cities to Start Airbnb in US

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

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

        San Antonio

        New York City

        Las Vegas 

        San Diego

        Chicago

        Miami

        Milwaukee

        Columbus

        Indianapolis

        Memphis

        Philadelphia

        Kissimmee

        Phoenix

        What's next?

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

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

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

        Categories
        Airbnb Investment All About Airbnb

        Best Airbnb deals in Dallas (2021 Updated)

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

         

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

        Deep Ellum house in dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

        artist's loft near deep ellum in dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

        best deal in dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

        main street garden park dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

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

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

        Cozy Private Room in dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

        Bardo Lofts Studio | 3 Guests ($80)

        Bardo Lofts Studio in dallas

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

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

        best deals in dallas 2021

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

        Why is it the Best Airbnb Deal in Dallas?

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

        Click Here to Book

         

        Categories
        Airbnb Investment All About Airbnb

        Best Airbnb deals in Houston (2021 Updated)

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

         

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

        3 Bed Room Mont rose apartment Houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

        Minimalist 1BR House | East Downtown ($142)

        Minimal 1 BR House East Downtown | Houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

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

        Belle 2 bedroom bungalow downtown Houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

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

        2 BR Casa Clare houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

        The Heart of Midtown ($75)

        The heart of mid town houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

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

        Montrose spacious studio Airbnb in Houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

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

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

        East Downtown Modern Luxury Retreat ($252)

        East downtown Airbnb in downtown

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

        Tiffany Blue Apartment ($60)
        Tiffany Blue Apartment Houston

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

        Why is it the Best Airbnb Deal in Houston?

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

        Click Here to Book

         

         

        Categories
        Airbnb Investment All About Airbnb

        How to invest in Airbnb property – Kuala Lumpur Malaysia

        This post was written by Wei Hong Low

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

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

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

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

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

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

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

        Data Collection Journey

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

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

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

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

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

         


         

        Data Cleaning Journey

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

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

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

        Data Exploration

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

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

         

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

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

        Data Analysis

         

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

        What insight you could get from this graph?

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

        Now, it is time to know the answer.

        What is the best area to invest in Kuala Lumpur?

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

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

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

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

        Thus, the final formula looks something like this.

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

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

        relation between demand and ROI among the top 10 KL neighborhood

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

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

        relationship between demand and revenue to cost ratio among

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

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

        Final Thoughts

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

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

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

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

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

        See you in the next post!



        About the Author

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

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

        You can connect with him on LinkedIn and Medium.

        Free Webinar

        Learn Airbtics in 7 Minutes

        Revenue and market analysis Tips and Best Practices!
        Airbnb Data
        Airbnb Data

        ARE YOU IN?

        Get Access to our weekly data-driven airbnb report!