Running Comps for Air BnB

10 Replies

How do people comp Air BnB income for a house they are buying that would potentially be used to rent on that site?  Is there an online scraper tool that pulls sales data from neighborhoods?  Do people just guess? 

There is a web app for that @Greggory Kowalkowski Air DNA. The pricing is the perfect capitalist system: supply and demand.  When I started, there were 30 apartments on the site in my zipcode. By the next summer there were 300 apartments for the visitors to choose from. And they were all BEAUTIFUL. Many landlords got the same idea at once. Prices dropped to attract a short-term leases.  My advice: don't rely on the high dollars of the short term furnished rental. It is sweet while the apartment rents at the ideal. But the owner should have a back up plan should the market change.

@Greggory Kowalkowski as you can imagine, the industry has evolved with a number of tools that provide market data on occupancy, revenue and all kinds of metrics for vacation rentals. AirDNA has been around a long time and can provide an idea on income for a specific unit by scraping websites. We use Key Data Dashboard, a much more precise tool which actually pulls the data from participating property management systems. AirDNA is probably sufficient for the initial exploration phase. We manage and market 80 units in the Orlando market, which is one of the most competitive markets in the US with over 65,000 vacation rentals. It's also (normally) a very high demand area, so with the correct decor, marketing and pricing strategy, homeowners can still expect to yield far more than they would with a long term rental. So my advice would be do your homework, crunch the numbers but don't write off vacation rental investments :)

I don't beleive Airdna data is very accurate. I would advise you do it manually.  Its not that hard to find some similar properties on Vrbo and airbnb to use as comps. Drop the data in excel for an easy way to analys the data and change the numbers around to see best and worst cases.

@Greggory Kowalkowski

AirDNA is the big player in that space. We certainly use with buyers who want Airbnb investment properties or those wanting to house hack in Denver and Colorado Springs. We find it's relatively accurate as a first-step tool. But as with any tool, it has its plusses and minuses.

  • It's only as good as its inputs. I think it might be slightly more accurate for bigger cities where there are a lot of short-term rentals in dense areas. If you're in a less dense city, it's pulling its averages from a smaller sample size and therefore might be easier to skew because of outliers
  • It is just an average. And it can be pulled down by less-attractive places. If your space is something special, if you've got better features or have put in some serious interior design work, then that AirDNA data is going to be low.

Good luck with whatever direction you go.