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에어비앤비 창업하기 가장 좋은 도시는? 수익률 알아보기 (제주, 서울 등등) 2022 최신버젼


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    에어비앤비가 2008년에 생긴 이후로, 매해 마다 점점 더 많은 수의 호스트들이 에어비앤비를 통해 제태크 수입을 내고있습니다. 투잡으로 에어비앤비를 관리하는 사람들이 대부분이지만 에어비앤비를 통해 전문적인 사업을 하는 사람들도 많이 늘어나고 있는데요. 오늘 이 블로그에서는, 에어비앤비 데이터 분석을 통해, 국내에서 에어비앤비를 하기 가장 좋은 7개 지역을 뽑아 봤습니다. 

     

    이 글을 쓰기위해서 저희는 에어비틱스라는 호스트를 위한 에어비앤비 데이터 분석 플랫폼을 사용했습니다. 또한, 자신의 집이 에어비앤비를 하면 얼마나 수익을 낼 수 있는지도 한방에 알아 볼 수 있으니, 참조해주세요.

    에어비앤비 시작하기 좋은 수익률 높은 곳 7군데

    서울

    에어비앤비를 시작하기에 가장 좋지는 않지만 (비싼 집값으로인해) , 우리의 수도 서울부터 소개를 해드리겠습니다. 9000여개의 에어비앤비가 있네요. 에어비앤비를 통해 가장 수혜를 본 도시는, 기존의 유명한 관광지인 제주도 같은 곳이 아닌, 이미 많은 호텔들이 위치한 서울과 같은 도시입니다. 에어비앤비가 생기기 전에는, 호텔 혹은 모텔이 유일한 숙박 옵션이였는데요, 이제는 많은 도시민박이 생겨, 서울에 있는 아파트에서 며칠간 쉬며 서울거주민생활을 체험해볼수있습니다.

    서울내에서도 가장 핫한 곳은, 홍대입구역 근처입니다. 기존부터 많은 외국인을 위한 게스트하우스들이 있었던 점이 한몫을 한것 같습니다. 그 다음으로는, 한옥마을, 이태원근처, 강남역근처, 판교근처도 에어비앤비 하기가 좋습니다. 강남지역 보다는 강북지역이 에어비앤비를 하기 좋아 보이네요. 

    홍대입구역근처의 방이 한칸인 에어비앤비는 2021년 41퍼센트의 점유율을 보여줬구요, 한달 수입이 120만원 정도가 되네요. 이정도면 에어비앤비 할만한가요? 장기임대가 나은가요? 

    서울 에어비앤비 이용객의 대략 80프로는 내국인이구요, 20프로만 외국인입니다. 대부분의 외국인은 미국에서 오는 것으로 보이네요. 90퍼센트의 서울 이용객은 한국어를 쓰니, 제목을 쓸때도 참조하면 좋겠네요! 

    서울 에어비앤비 데이터 보기 

    제주시

    두번째로 소개해드릴 도시, 그리고 에어비앤비를 시작하기 가장 좋은 도시는, 제주도입니다. 5000여개의 에어비앤비가 있습니다. 제주도는 관광도시로 유명한 곳이죠. 

     

    제주도에서는 방한칸짜리 집이 평균적으로 한달에 190만원의 수익을 냅니다. 서울보다 낮은 집값이지만 수익률은 80프로이상 높네요. 점유율은 50프로를 상회하며, 1박 평균 11만원 이상을 받습니다. 청소비용으로는 15,000원 정도가 시세네요. 

    제주도 남부가 더 좋을까요 아니면 북부가 좋을까요? 알고싶으시다면 에어비틱스 데이터 보드를 확인해보세요. 

     

    제주 에어비앤비 데이터 보기

    강릉 속초

    세번째로 에어비앤비를 하기 좋은 도시는 서울에서 그리 멀지 않은 동해안 도시, 강릉과 속초입니다. 

    총 3,000 개의 에어비앤비가 있습니다. 속초,강릉,양양 인구수를 다 합해서 50만이 넘지 않는것에 비하면, 정말 많은양의 에어비앤비가 있네요. 또한 이곳은 코로나로인해 해외 관광을 못하게 되므로서, 더 많은 관광객들이 찾아오는 핫플레이스가 되어버렸습니다. 

     

    1년내내 점유율은 서울혹은 제주보다 작습니다. 하지만, 방한칸짜리 1일숙박료가 홍대보다도 비싼 평균 11만원입니다. 성수기인 여름에 좀더 높은 점유율을 보이지만, 12월 1월 크리스마스, 세해를 비롯한 각종 공휴일에도 인기가 많은 곳입니다. 

     

    개인적으로 생각하는 속초,강릉의 장점은 제주와는 달리 서울에서 2시간만 차를타고 갈 수 있기 때문에, 서울에서 일을하며, 투잡으로 속초,강릉에 있는 에어비애비를 관리하기 쉽다는 점이 있습니다. 

    속초 공유숙박 데이터보기

    강릉 공유숙박 데이터보기

    부산

    에어비앤비하면 도시민박이라고 앞서 말씀드렸는데요. 부산에는 2,500개의 에어비앤비가 있습니다. 부산 에어비앤비 창업의 매력은 강릉 혹은 제주와 같은 관광지이며 서울과 같은 대도시의 느낌을 주는 곳이라는것이 장점이라고 봅니다. 대도시이기때문에, 속초, 강릉 보다 약간 높은 37%라는 입실률을 보이고있습니다. 

    수영구의 마린시티에 있는 한 에어비앤비는 겨울시즌 동안에도 월 200가까이 벌어들였네요. 

    부산 에어비엔비 데이터보기

    경주

    신라시대의 수도. 한국의 문화재가 가득한 경주를 빼놓을 수가 없습니다. 800여개의 에어비앤비가 있으나, 입실률은 속초,강릉 보다 약간 낮은 정도입니다. 경주에 오는 대부분의 관광객은 예상을 했겠지만, 서울입니다. 그 다음으로는, 대구와 부산 그리고 울산에서도 경주에 찾아오네요.

    경주 에어비앤비 데이터보기

    전주

    그 다음으로 알아볼 도시는, 전주입니다. 한옥마을로 유명한 곳이죠. 전주의 에어비앤비 시장은 그렇게 크지는 않습니다. 1,000여개의 에어비앤비가 있습니다. 연중 입실률도 25프로정도로 생각만큼 매력적이지는 않습니다. 하지만, 전주 시내, 한옥마을 근처는 또 이야기가 다르겠죠? 

    전주 에어비앤비 데이터

    여수와 거제

    마지막으로 알아볼 도시 둘은 여수와 거제입니다. 각각 800여개의 에어비앤비가 있습니다. 혹시 남부 해안가에서 에어비앤비를 하고싶다면 유용한 정보인데요, 여수시가 거제시보다는 약간더 입실률과 수익률이 좋습니다. 

    거제시 에어비앤비 데이터

    여수시 에어비앤비 데이터

    이 블로그에서는 국내에 7군데의 에어비앤비 사업을 시작 하기 좋은 도시들을 알아봤습니다.

    Airbnb data
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    Airbnb Investment

    Airbnb Calculator: How to estimate your earnings

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

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

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

    Make a market analysis of Real Estate –

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

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

    Analyze Potential Investment Properties

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

    Flow of Cash

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

    Rate of Capitalization

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

    Return on Investment in Cash

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

    Airbnb data
    Airbnb Income Calculator
    Currency
    Occupancy
    ADR
    ADR Growth
    Annual Appreciation
    Expenses Increase
    Profit Tax
    Availability
    House Price
    Down Payment
    Interest Rates
    One-Off Cost
    Annual Cost
    Monthly Cost

    Profit Analyzer

    Cash on Cash Return
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    Net Rental Yield is
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    Profit After Tax
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    Airbnb data

    Investing in Real Estate Tools

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

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

    Airbnb Income Calculator FAQs

    Most frequently asked questions and answers

    What should I include in expense?

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

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

    What is a one-off cost?

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

    I'm confused with profit tax

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

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

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    Airbnb 2021 Updates | Announcement Summary

    As the Vacation Rental Industry is steadily recovering from the pandemic, Airbnb is betting on the exponential increase in travel this coming summer. In the 2021 update Airbnb CEO, Brian Chesky, talked about how Airbnb is seeing more than a 40% increase in occupancy rate in areas like Seattle, Los Angeles, and New York. This is great news for all the Hosts out there who had experienced a major decline in booking last year due to the pandemic. Apart from this Brian also talked about 100 new features the new Airbnb 2021 update will have to make the experience better for both the guests and hosts, let’s have a look at the major ones one by one.

    For Host

    Airbnb has introduced more than 60 new features targeted towards hosts in their most comprehensive update since their inception. Last year when the pandemic started, there was an avalanche of queries and issues asked by hosts from all across the globe related to bookings, reservations, and payments which overwhelmed the overall customer support infrastructure of Airbnb, thus leaving a lot of unsatisfied hosts and customers. This year customer support seems to be one of the major areas where Airbnb is focusing and upgrading problem resolving experience for guests and hosts.

    Dedicated Customer Support for Super Hosts

    Starting from September 30 for North America & December 15 worldwide Airbnb is starting dedicated customer support for its super hosts, this will surely help reduce those long waiting times that hosts had to endure and shrink the overall timeframe for resolving an issue, having dedicated services for superhosts will also encourage more hosts to provide better service and great experience so they can also avail these exclusive features in future.

    Airbnb Customer support languages

    Customer support in 42 languages

    Airbnb has increased its support coverage from 11 languages in 2020 to 42 languages in 2021, this is a very big step to onboard more local hosts across the globe. This will encourage people to start using the platform seamlessly and improve the overall hosting experience. This will definitely help Airbnb create better relations with hosts who speak these newly added languages and build a stronger community of hosts worldwide. Tapping into these languages will increase the host network and bring more listings to the platform making the Airbnb community stronger worldwide.

    10 Step New Listing Creation

    In the announcement, Brian created a listing to demonstrate the new AI & Machine Learning enabled 10 step process to create a listing. In this new process, once you put the address of your house, Airbnb will automatically import the number of Bedrooms and Baths from publicly available real estate data. Not only that, I’ll suggest a title and description as well based on the location and details you’ll add about your property. One more new feature is optimal image selection. Now when you upload a bunch of photos of your house, AirBnb’s machine learning algorithm will automatically arrange the images in the most optimal order to bring the best results.

    When creating your listing, if you get stuck at some step, you can reach out to a super host by privately messaging them and get proper guidance on creating a listing that will attract more guests and rank higher in the region, the proper implementation of this feature is still unclear, there are some questions that come in mind for this features, who will be these super hosts, what will be the timeframe to get a response from them, is it a voluntary role or full time employed professionals by Airbnb. We would have to wait for these new features to roll out to get answers to these questions.

    Todays Tab

    This tab will be the one-stop destination for all your todos as a host all aggregated at a single place, this section will help you prepare for guests, show relevant articles to improve your hosting skills, help you optimize pricing, and calendar, track local trends and much more.

    For Guests 

    Airbnb isn’t solely focusing on improving the experience for its hosts with this update, they have introduced more than 40 updates that are targeted towards the guests. Here are some of the major ones.

    Flexible Dates & Destination

    This pandemic has made a huge cultural shift when it comes to the lifestyle of working professionals, as more and more people are adopting work from home full time, Airbnb has seen longer bookings compared to earlier years, this is surely the aftermath of the flexibility people have when it comes to the time and location, this has encouraged people to no just visit but start living in AirBnbs and use it as their workstation. To facilitate this new cultural trend Airbnb has introduced a special search option to find listings that one would have missed out on earlier due to structured dates and pricing. This feature will be really appreciated by people who don’t like to make planes, always seek adventure, and are always on the lookout for something new. 

    Caregiver Pricing

    This feature allows super hosts or experienced hosts to give special or free pricing to caregivers who are assisting people with disabilities, this is a good initiative that will definitely give an incentive to the section of society that is usually left out when it comes to catering rules towards their special needs.

    Faster Checkout

    Airbnb is trying to reduce the steps needed for a first-time user to complete a transaction and book a listing. They have simplified the whole checkout process and made it more streamlined so you don’t waste time entering unnecessary details during each booking.

    Updated Filters

    The 2021 update has more than 7 different updates that are targeted towards filters indirect and some in-direct ways thus making it one of the major changes in the announcement, they have included seasonally aware filters which will show up in some specific filter only if it is relevant with the current season in the area, also similar to seasonally aware filters, they’ll also show geo-specific filers, these filters will be specific to the location type and will only show up if you select a different geographical location ex: Ryokans in Japan or igloos in Norway

     

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    Podcast

    Into the Airbnb EP 15: Managing four Airbnb listings in Albany, New York remotely

    Welcome to the latest episode of Into the Airbnb, where we talk to Airbnb hosts about their short term rental experience. Today’s guest is Earl from Denver, Colorado. Together with his old uni classmate as his business partner, he purchased and converted a duplex into 4 Airbnb listings all the way in Albany, New York. He tells us about how he manages the property remotely and the challenges that came with that. So far, he has made above $80,000 gross revenue on his $230,000 property. 

    This episode is sponsored by Airbtics, the all-in-one analytics dashboard for short-term rental investors and managers where you can find precise Airbnb data such as occupancy rates, revenue, and average daily rates of your area.

    So without further ado, let’s get into it.

    Summary
    How did you get started with your first short-term rental property? 1:06
    How has COVID-19 affected your short-term rentals? 4:33
    When are your busiest seasons? 6:10
    What is your occupancy rate like in the last 12 months? 8:19
    What’s your revenue like? 9:15
    What are your expenses? How much profit do you make? 10:39
    Are you looking to expand? 15:58
    How are you managing your Airbnb rentals remotely? 16:21

    How did you get started with your first short-term rental property? 1:06

    Jae

    So my first question is, yeah, I can see that you have four listings. And are they all in the same location, same building?

    Earl  

    They’re in the same building? Yeah.

    Jae  

    How did you get started with your first rental?

    Earl  

    So, this is my first and only short term rental property for now with the four listings. My first long term rental was… I got it the year prior. I had done some creative financing. Not the short term rental. The short term rents I can go into a little bit as well, but the long term rental I have is a three family also in the Albany area. I had saved up about $23,000 but the cash to close was about $38,000 I was short 15 grand. I pulled it from a credit card balance transferred from a 0% APR credit card and then, you know, deposited a check into my savings account and let it season. So when it comes time to close, you know, it showed enough cash to close for the loan to approve for the remaining 75% of the loan to value of the property. That was the first one.

    When I had done that, shortly after I’d done that, some folks that I went, well, one guy I went to school with, at NYU, he was just about getting his real estate agent licence. But he ultimately wanted to do investing and  real estate agent doesn’t teach you how to become an investor. So he partnered up with me and brought along another friend of his to go into this next deal. My second deal – their first – and this is what ended up being the short term rental. So the short term rental, we had acquired that last… we had acquired in November of 2018, after you know, spending a lot of 2018, trying to find the right property. We weren’t necessarily targeting short term rental initially, actually, it was a bit of an accident, we found a property that had some bonus units, and we’re like, “Oh, we could do long term rentals on the main units and short term rentals on the bonus units”.

    So we started with, you know, purchasing that. So I went into that deal, actually with them, they had put up the downpayment and closing costs of about $48,000 on a 240,000- $233,000, purchase price. So they put in the down payment and closing costs for that one, but borrowing my credit, really putting it on my credit. That’s the way we went about it, just to get their foot in the door. And then, so I had used some promotional credit cards to furnish one unit, then two units, then eventually three and four units. And then we had paid that back from the profits right away so that I was all in my own pocket, you know, about three grand only from my credit cards, ultimately, which I paid back from the subsequent profits, of this unit, of the property

    Jae  

    Your first short term rental, you mentioned that it was $230,000.

    Earl  

     Yeah, the whole building. Yeah, it’s four units.

    Jae  

    Oh, so it’s with the four units.

    Earl  

    It’s all yeah, it’s technically a duplex, but it’s got the bonus basement and attic. So we were initially thinking those would be the only short term rentals. However, it worked out that, you know, we just decided to turn all four units into short term rentals.

    Jae  

    Right. Okay. Makes sense.

    Earl  

    Yep.

    How has COVID-19 affected your short-term rentals? 4:33

    Jae  

    And what’s your current situation with your rental? Like, among the COVID situation?

    Earl  

    Yeah. So I was surprised, you know, in the second half of March, I had a whole wave of cancellations. You know, my phone just kept dinging, and dinging and dinging. And everything, everyone was cancelling straight through, you know, April and May. And right now, you know, it’s, I was quite surprised when I started April, it was about 5% occupancy, or something very, very low. That was the beginning. And usually you want to start the month. A good start of the month would be about 50% occupancy, and then as the month goes on, the rest of the remaining 50% gets filled up. But we started the month with 4%. And we ended the month at 95%. So that was cool.

    Jae  

    Wow. So you’ve managed to hit like 95% across the four listings.

    Earl  

    Yeah. And I didn’t really change anything. It was a matter of guests who stayed there. And similar to you know, your guests, they, they stay there for a week, and then they stay there for another week and another week. Anyway, had some people checked out and then other guests filled in and then you know, those guests came back later. So it’s a bit of intermittent guests, repeat guests. And yeah, it just ended up being… there was a good chunk early April for one of my units that was like, you know, over a little over a week long that was empty, but the other three units made up for it. So that’s why it came out to be 95% occupancy. That’s across the four units.

    When are your busiest seasons? 6:10

    Jae  

    Okay, that’s awesome. When are the busy seasons and when is the quietest month for your rentals?

    Earl  

    The busiest… so I have noticed that similar to others, it is a little bit seasonal, but not quite. January is surprisingly busy. For some reason. February, is you know, normally dead and you know, so didn’t think much of it, February and March. But you know, until all the cancellations came in, you know, I thought it was just normal February and March. July and August are also very busy and actually so is May. May is always booked because it’s graduation season and there’s several colleges in the area that have graduations. So a lot of family members use Airbnb instead of hotels.

    Jae  

    Right? So do you increase the price during the graduation season?

    Earl  

    Yeah, I don’t do much of it. I don’t do much manual price. I don’t do any manual pricing. I use tools like Smartbnb and Beyond Pricing. Actually, Beyond Pricing is not available in Albany. So I use PriceLabs instead of Beyond Pricing. In other cities like Denver, New York City, the bigger cities have Beyond Pricing is available. But for PriceLabs, I set a minimum price, a base price and a maximum price. And with the Coronavirus and the lower demands, it’s been tending towards the minimum price, sometimes it will eat up a little bit for each unit. I actually have that only set for three of the units because the basement unit I just have smart pricing on. And surprisingly, the smart pricing has been pricing it higher than what I used to have as the minimum price. I had the basement unit for typically around $45 to $50. And I’ve been seeing people book it for $65 regularly. So it’s the Airbnb algorithms.

    What is your occupancy rate like in the last 12 months? 8:19

    Jae  

    How has been your occupancy rate like throughout the season? You’ve mentioned 95%. But how is it like in the last 12 months?

    Earl  

    Last twelve months? Yeah. So the occupancy in the last 12 months typically hovers between 85% and 95% on average. I have not seen it dip significantly. You know, I think on a slow month, a typical slow month, and a slow month might be you know, October, November. That slow month is about 80%.

    Jae  

    Understood. When I had a look on your…

    Earl  

    84%, that was for last November. I believe October was slower. Oh, no, it was not. October was 94%.

    Jae  

     Yeah, that’s awesome.

    Earl  

    And how’s December? December’s 87%. All right. Well, I guess I don’t have a slow month.

    What’s your revenue like? 9:15

    Jae  

    What’s your revenue like? If your occupancy is 80-90%?

    Earl  

    Yeah, yeah. So okay, I found a slow month. That was February of this year, February 2020 was 80%. There we go. And in terms of revenue, that varies a little bit, but across the four units, gross revenue is averaging about $9000- $8500 to $10,000. One month or so I might have had slightly higher. February was low. So about 80% I was getting this past February was $6747. So that’s cool. And if I look at November. That was $8407. And December was $8700. So the most I got was in June of last year. Actually that was uh, that bumped up over 10,500, it seems.

    Jae  

    That number seems to be…

    Earl  

    …$10,600. Yeah. For four units. Yeah. That’s pretty good for gross. So yeah, in terms of just you know, not occupancy, but rather revenues. I can see June and August is your typical, you know, seasonal bump, right? But May is actually, May and October are surprisingly a close second.

    What are your expenses? How much profit do you make? 10:39

    Jae  

    Yeah. And what’s your expense, like for the cleaning supplies and all those things. So let’s say, if you make $10,000 per month in revenue. What’s your actual profit?

    Earl  

    Yeah. So, other models, I know they own a property… or they don’t own the property. They might rent it but since we own the property, we also have you know, PITI: principal, interest, taxes and insurance. But not including that, you know, cleaning expenses tend to be approximately $2000 a month. And utilities, electricity and gas are about $500 a month. And then water, sewer, extra $30 small stuff and supplies, approximately, you know, for all four units, this one I haven’t, you know, really calculated out, but I would guesstimate about $150 a month, maybe less.

    Jae  

    Right. So that’s giving around $90,000 to like $100,000 profit per year? Before like tax and insurance and all those things, PITI?

    Earl  

    Yeah. So yeah. Without the mortgage,you mean?

    Jae  

    Right.

    Earl   

    Yeah, I mean, with the mortgage, I would net up probably about $5000. This was pre-COVID level. So we’ll see what 2020 will turn out, but we’re expecting about $4500 in net revenue. That’s after the mortgage.

    Jae 

    After the mortgage. So you’re actually like earning interest-free? I mean, what’s that? You’re not buying equity at all? Or are you building…?

    Earl  

    That’s also building equity. So that’s with the, you know, principal and interest and taxes and insurance, the principal part building the equity. So, you know, if we use other strategies on top of that, we could really knock out that mortgage payment in very, very short amount of time.

    Jae  

    Yeah. How much of the equity are you building per year for that?

    Earl  

    So that’s, that’s dependent on… For the whole building, you mean?

    Jae  

    I mean, yeah, for the whole building, but for the rate of the mortgage that you’re paying.

    Earl  

    Yeah, that’s based on the amortization schedule, and here in the US, you know… I’m not sure about the UK, but we have a standard 30-year, mortgage, conventional loan, right? And that’s based on an amortization schedule, where it’s front-loaded interest. So you’re paying much of interest. So very, very, very little principle gets built up in the first, you know, seven years or so, unless we apply other strategies like velocity banking, to apply the cash flow against the mortgage and accelerate it to build up equity way, way faster and save on the interest.

    Jae    

    So yeah, if I just assume that you’re building towards the equity around $7000-8000, roughly, a year. That means that actually your gross yield is above 25%. Considering that your property was like $235k, and you’re making $45,000. And building some equity on top of it.

    Earl   

    Yeah, yeah, I guess that’s one way to think about it. I believe, you know, that would be the capitalization rate. Right? But, you know, we were more looking at the cash-on-cash return, meaning the partners had put in $48k, when are they expected to get paid back essentially, from the profits? And we’re estimating about three years.

    Jae    

    About three years. Yeah, for the cash-on-cash return.

    Earl   

    For the cash-on-cash return. Yep.

    Jae    

    Right. How does that work with you? Your net revenue is $45,000 a year?

    Earl   

    Approximately, yeah.

    Jae    

    That’s your

    Earl   

    Yeah. If that’s the net revenue, then they would be paid back in one year. Right. Is that what you’re saying?

    Jae    

    Yeah.

    Earl   

    And we also split it up a different way. So because they put in the money, and I did not put the money in. So I get a fraction of that. But also, let’s see. So that would actually Yeah, no, I think you’re right, that the two, three years was prior estimates for when we would be getting the money back. However, the setup costs also played a factor into the first year. That first year was basic, like, yeah, it netted $85,000… No, sorry, it grossed $85000 in the first year, that one I know from just the Airbnb’s printout, transaction report. However, there was a lot of setup costs that were used to, you know… the revenue was not the profit. So profit was probably closer to $30k.

    Jae    

    Right, in the first year.

    Earl   

    In the first year, so there’s that first year. And then the second year will be, you know, we’ll make up for the difference. And so we’ll have all our money back. Or at least the partners will have all their money back. After the second year, hopefully. So we’re in our second year now.

    Are you looking to expand? 15:58

    Jae   

    I see. Are you running Airbnb elsewhere?

    Earl   

    Nope, not yet. Not yet, have not gone to expand that yet.

    Jae  

    Right. Are you planning to expand it into like other areas? Or that area?

    Earl  

    Probably not in that area? You know, but I’m not sure yet. We haven’t really like… especially with, you know, with a little bit of downturn here. A couple months ago, we were looking to expand a little bit, but those plans have changed.

    How are you managing your Airbnb rentals remotely? 16:21

    Jae   

    Right? Is your partner living near there? Who is managing the Airbnb?

    Earl  

    I’m managing it remotely,

    Jae   

    Like, completely remotely?

    Earl  

    Yeah. Yep. Completely remotely.

    Jae   

    How many times have you visited there this year?

    Earl  

    When’s the last time I was there? I think I was there for the holiday season. Yeah. So December, late December, I was there.

    Jae   

    Right.

    Earl  

    And the other two partners are actually living in New York City or no… One guy lives in New York City, the other guy moved back to Taiwan. But they’re more silent capital partners than anything.

    Jae   

    Okay, what are the tough challenges about running remotely?

    Earl  

    You got to have the systems in place. I think. Challenges involve… Okay, so I was on vacation once in Hawaii. So there was a big time difference. So time difference, I’ve gotten used to at least, with only a two-hour difference. It’s not too much. And we used to have a lot of, you know, a lot of guests, you know, one night stays, so there’d be constant turnover. So handling that was, you know, I have automated messaging with Smartbnb, and all that. So that was crucial, but some challenges still exists. 

    And you know, and those usually lie when guests don’t read the instructions. I have all the instructions in place, and maybe too much instructions. But sometimes they just straight up don’t read it, and maybe they don’t read it because it’s too much. I don’t know. But the point is that they get an email, I have August Home locks, they get an email as soon as they book with the codes in it and also the instructions if they wanted to use the app. Sometimes they completely miss it. Maybe it goes to spam. I’m not sure, but I do have in my Airbnb chat to confirm that they received it and most people do confirm that they receive it but the ones that don’t, then it gets a little wary. 

    But 48 hours prior to check in I have an automated message as well that gets sent out with all of the detailed step by step instructions. The instructions include “Hey, get that code from that email. If I can just figure out a way to get the August Home codes directly into the Airbnb chat message then that would slightly streamline some things but you know… 

    When I was in Hawaii, there was a sewage backup. So the basements started getting flooded with sewage.

    Jae   

    Oh and the guests were there…

    Earl  

    The guests were there.

    Jae  

    How did you do?

    Earl  

    So yeah, they reported it, I got emergency plumber to come by. My cleaner had done a lot of work cleaning that up and I believe we had also shut off the main water supply just to prevent it from getting worse. But yeah, I had a plumber, you know, commercial plumbers clean that up, but just like clean out the pipes. And then I had the guests the guest situation obviously- well not obviously- but they couldn’t stay there. I believe I had ended up, what did I do with them? Either I moved them to a unit upstairs or I had booked a hotel, you know, at my cost, at my expense for them.

    Outro

    Many thanks to our guest, Earl, again for sharing his story with us. If you’d like to hear more about what it’s like to host and manage Airbnb properties, make sure to follow us to be notified of the latest episodes.

    OCCUPANCY RATES IN NEW YORK CITY?

    Learn more about how to find Airbnb occupancy rates in the major cities of the world!

    Categories
    Case Studies

    The rise of Domestic Tourism in 2020 and How to leverage data to increase tourism in your city

    Table of Contents

    How has Covid-19 affected international tourism?

    There is an estimated decline of 58% to 78% on international tourist arrival this year due to the Covid-19 pandemic, as stated by UNWTO. With planes forced to stop flying and borders closed between countries, people have no choice but to stay put. Looking at the current situation, international travel does not seem to be going back to normal any time soon and people have gradually turned to domestic travel. There are several cities that managed to recover economically from the pandemic through domestic tourism.

    Increase in domestic tourism

    Although international tourism may be essential for a greater growth in future, domestic travel will help to achieve more sustainable tourism revenue all year round, especially when faced with potential seasonal and regional restrictions.

    Domestic vs. International Tourists in Ireland

    Based on our data from Airbtics, Ireland, for example, has been facing a constant drop on the number of international tourists from September 2019 onwards. On the other hand, the graph shows an upward trend on the number of domestic tourists, and it surpasses the number of international tourists in April 2020. Tourism Northern Ireland highlighted the importance of their marketing efforts targeting the domestic market as domestic tourism has contributed to 31% of the country’s tourism revenue in 2018 and there is a further increase in domestic travel by 7% from 2018 to 2019, based on the Northern Ireland Statistics and Research Agency (NISRA).

    In Australia, our research data have shown that Covid-19 did have a massive impact on the ratio of domestic and international tourists, beginning from April 2020. However, it also shows the percentage of domestic travel in the country has constantly been higher, even before the pandemic. Hence, by designing good marketing campaigns to tap on the domestic trend may help to boost the tourism revenue.

    Surge in staycations

    There has been a growing interest in staycation, where locals choose to stay in other accommodations in their country. This is apparent from June 2020, after the lockdown period in most countries. According to our data on Airbnb bookings, the countries that show the greatest surges in staycation are the United Kingdom, Ireland, Canada, Malaysia and Australia.



    Number of people on staycation

    The above graph shows the number of times the word ‘staycation’ was mentioned, pulled from every 1,000,000 Airbnb guest reviews in the UK, Ireland, Canada, Malaysia and Australia. From the risen trend of mentions from June across all five countries, it is likely that many of these Airbnb guests have turned to domestic travel for their summer vacations. 

    Gain Exclusive Insight

    Take a look at how DMOs and Travel Boards are utilising data to adapt to the change and increasing visitors to their destinations

    How do some DMOs adapt to the change?

    We have seen many DMOs that initiated marketing campaigns by introducing their digitalized platforms to stay connected with their fellow consumers. An example of this is the Singapore Tourism Board (STB), who aims to promote domestic tourism by introducing digitalized experiences and partnering with various organizations that share similar target audiences. One of the partners includes Airbnb Experience, where they worked together to introduce virtual tourism experiences on the attractions in Singapore. STB also has a seven months long collaboration with Klook this September, where they encourage locals to take on adventures and explore a different side of Singapore

     

    A similar campaign was also carried out in the United Kingdom. Visit England partnered up with DMOs across the country, where they started the “Escape the everyday” campaign in September. On their platforms, they share different types of things to do across regions, with the hope to boost domestic travel through this autumn and winter. Moreover, social media influencers are engaged in their promotions, which may appeal to the younger crowd and motivate them to join in the domestic tourism trend.

     

    It is important for DMOs to be aware of the changes before they can adapt to them. So first, identify the trends and target markets frequently. From there, anticipate their needs and wants, which would then help in curating effective marketing strategies. Airbtics possesses a huge amount of data related to short-term rentals around the world. We provide our clients with up-to-date information based on their needs, such as the most popular regions amongst visitors, top few origins of visitors that are visiting the city, the amount they spend on accommodations, their travel expectations and much more. 

    What should DMOs do to boost tourism?

    DMOs act as a platform between suppliers and consumers on what their city has to offer. In brief, there are five key points for DMOs to effectively increase the number of visitors.

    1. Identify the majority profiles of people visiting at different time points

    This is the most basic yet crucial step. Knowing your market, it is like fishing where the fish are. Our team has spoken with multiple DMOs over the past few months who shared insights on the difficulties in getting specific data such as the top three guests’ origins who are visiting their cities. Hence, many resorted to getting the rough gauge of their visitors’ profiles by means of guessing. Airbtics uses Artificial Intelligence (AI) technology in getting data of visitors through Airbnb reviews. We are able to get the data for any regions specified by our clients for as low as $65 per month. Feel free to have a read on our free case study to help you get a better understanding on how we can help tourism boards attract visitors through a cost-effective and smart way.     

    1. Understand and anticipate the needs and wants of your target market

    By keeping your organisation updated with the latest travel and market trends, you can better understand what people are looking for and how you can market your products as best befits the needs of your consumers. Numbers speak louder than words, with access to real time data from Airbtics such as the increase in usage of “staycation” amongst guests helps in the realisation of trends. Domestic tourism has great potential and is proven to be a viable market, hence DMOs should consider looking at it as more than a short-term plan.

    1. Ensure your website is up to date with credible and relevant information

    In this digital age where people look for most information online, it is essential to have a one-stop website with an abundance of credible and relevant content as well as direct links to local businesses that is neatly categorised, easy to navigate and highly accessible via online search engines.

    1. Take advantage of the social media tools

    With the growing number of people on social networking these days, being active and responsive on social media platforms help to drive traffic and build rapport with consumers, thereby, gaining their trust. The great thing is the possibility to reach out to the market and gain awareness through organic marketing strategies. That is the beauty of technology!

    1. Collaborate with other organisations to reach out to bigger audiences

    Through partnerships with other organisations, it would benefit both parties that are working towards a common goal in bringing out more innovative ideas, reaching out to more people and gaining access to larger amounts of databases, which would be helpful for future marketing.

    Gain Insider Access

    Take a look at how DMOs and Travel Boards are utilising data to adapt to the change and increasing visitors to their destinations
    Categories
    Case Studies

    Which cities in the world are most profitable to do Airbnb?

    Just over a year ago, me and my colleague were talking about what would be the highest rental yield one can make whilst working in London. 

    Out of many ideas, one thing that caught my ears was a story from this woman who is doing Airbnb rental arbitrage in Canary Wharf with twenty 2-bedroom units. 

    She would rent a 2 bedroom apartment at £1,800/month and she’d put that house on Airbnb at £180 per night. 

    I did a quick search on Airbnb and Zoopla to confirm those numbers, and yeah, those numbers made sense. 

    That meant if the house is 70% booked, it will make 3,600/month and after paying rent and other expenses, the profit could be easily above 1,000/month per unit. Seems doable. 

    The competition in Canary Wharf seems to be getting intense and I wanted to leave London and live somewhere else in the near future. There must be more better opportunities in other cities.

    If I can continuously identify such opportunities, worldwide, I can be rich. 

    It’s easy to find out long term rental prices. But, how can I find out how much I can make on Airbnb? I can check out nightly rates from Airbnb website, but how do I know occupancy rates? 

    So I started searching for occupancy rates of Airbnb in different locations. The data doesn’t exist. Yes, maybe there is some data online saying “Airbnb occupancy rates in London is 45%” but it is too ambiguous. I needed more detailed information. 

    I’ve found one service offering Airbnb data outside of the US, but it was too expensive ($400+ to see data for 10 cities), and many reviews said data can be inaccurate. 

    That’s when I decided to work on building an affordable and accurate analytics platform. 

    I’ve started scraping data from Airbnb. Millions of listings. I’ve started interviewing Airbnb hosts asking them about their occupancy rates and ROI. 

    After a few months, I’ve started to see the patterns. I’ve built regression models on top of it. Then, scrape data, readjust the models, interview Airbnb hosts and repeat the whole process again and again. 

    The happiest moment is when Airbnb hosts tell me that my number is pretty close to theirs. 

    Feel free to take a look on my app, you can click below. 

    Categories
    Case Studies

    Airbnb booking data from Europe shows sign of a recovery

    Vacation rentals in Europe have just begun to recover. We have analyzed over 300,000 Airbnb listings across various cities in Europe and the UK this week.

    One major pattern that is observed in the past month is that the vacation destinations in countries with high domestic Airbnb guests have started getting more bookings in June 2020.

    For example, the UK has been having high domestic Airbnb guest ratio with above 50% of guests are travelling from the UK. The major coastline destinations in the UK, such as Brighton and Cornwall have experienced a surge in Airbnb bookings as soon as the UK has relaxed the lockdown in 2nd July. 

    Countries like Spain and Italy have been relying highly on international travellers and their bookings aren’t so good yet. 

    Please note that many other cities are not in the below charts but are receiving a healthy amount of bookings. If you’d like to know the number of Airbnb reservations made in June in your area, please use our market research app! (Also, make sure to add your city if it’s not available in the platform)

    Please read this post to understand how we have gathered these data. The charts show the YoY growths in a number of nights booked – from January to beginning of July 2020. 

    4 European Vacation Destinations show a sign of a recovery

    More domestic travellers, less international travellers

    Stay Insightful

    Airbtics is the short-term and vacation rental market research platform. We help rental hosts, property investors, realtors to understand the rapidly changing rental market by providing insights via our web service.

    If you have any further questions about the case study, please contact us at [email protected].

    All the data here without explicit references are sourced and processed by our technologies.

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