Short Term Rental Market Research

[Jorge Ydlibi]

Good afternoon BP fam, I'm starting to consider Short term rentals as an investment vehicle for myself and was wondering what is the best way to determine the reservation amounts for an area? Like lets say I want to buy a condo in Miami, or wherever it may be and rent it out on Airbnb, what is the best method of research to know how much it can be rented out for? Do I use comps on other similar properties listed on Airbnb for rent? Does Airbnb provide any resources for hosts to come up with competitive but profitable prices? Is there anything I can do to research possible areas that would work? Basically where should I start? 

Thanks in advance for any input!

[Collin Hays]

An easy and very effective method is to go to VRBO.com and review homes of comparable size and amenities in the area that you are interested in.  Check not only the rates, but their calendars.  High rates don't necessarily correspond to a busy calendar.  

You can get a general idea in a few hours what the appropriate nightly rates would be.  I would make a spreadsheet of different sizes of homes, as well as those with a differentiating amenity (water front, near resorts, golf course access, etc.).