Brookline, MA · Member since 2017 · 49 posts · 22 votes
Some of the pricing seems very optimistic on Airdna for the areas I'm looking at, compared with what I'm actually seeing on Airbnb. Do all of you experienced STR'ers find their data reliable? I'm mostly concerned with accurate occupancy rates.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
8y
I looked at it once and found it pretty worthless. Just another way to get paralysis. Find a property similar to what you're looking for and study the calendar.
I use it as a tool (along with mashvisor), but I don’t consider it to be the gospel. It’s hit or miss depending on where you’re looking and can range from extremely accurate to extremely inaccurate.
The airdna system and finding your own comps can share some problems in common. Airdna (and you) may read blocked days between guests (some owners do this for cleaning or maintenance), blocked days for owner use, or closure during certain seasons as “bookings.” Obviously they’re not. Also, variations in how well managed each property is or an owner allowing one night stays vs not allowing them may make a difference in how much you can earn. Airdna also doesn’t appear to count cleaning or other fees.
Perhaps it goes without saying, but your best properties will be near an attraction or attractions that have appeal all year. For cash flow, look for the ones that offer something unique in your specific market (location/proximity to an attraction, style, decor, size, etc.). Finding a market that isn’t already saturated or something with a view or water access are bonuses.
My suggestion is to look for or use all of the above AND pre-determine which items you can realistically find in a property in your market AND contact local vacation rental management companies to inquire about rental data AND inquire for rental data on a property that's listed for sale in the MLS AND find a knowledgeable realtor who largely does short term rentals AND look into existing and possible future HOA or government regulations. It's true that you don't want to be paralyzed by analysis, but I wouldn't skip it. Some rentals (and markets) are more successful than others. Some markets are more saturated than others. Some markets command a higher price or occupancy than others. Those variables matter. So, collect as much data as you can, look at the totality of it, recognize that it's imperfect (but better than nothing), make the best decisions you can make, take the leap, and don't look back.
And perhaps the best advice I can give is that if you can find someone in your market who already owns multiple properties, then copy them! They’re successful and have already done the analysis for you!
Robert M. Thanks for your response. I agree its best not to rely upon 1 or 2 sources as the only information by which to make your decision. I've been watching listings in the area and gauging how they are booking over the next few months - summer - but all appear to be blocked off for winter which is really where I'm trying to gauge interest. I can assume from what I see on Airbnb and VRBO summer will be busy but I was hoping that Airdna or Mashvisor might be able to help with what the expected winter occupancy might be. I agree that finding someone who has an existing STR is the best way to get information. Thanks!
@Justin MacKenzie, I think Mashvisor may indeed help you with that. They give a month-by-month look at top-performing properties in a town, and it’s pretty decent. All the best in your hunt!
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
5y
These backward looking data aggregators are great. However they don't tell you your area's full potential.
The hotels know your area's potential, so I always default to them and try to aim for 80% of their rates.
For example, since I focus on extended stays of +30 days, I'll look at that the high and low monthly rates for the nearest extended stay hotel (Extended Stay America, Residence Inn by Marriott, etc). That defines the envelope of prices that your area can actually support.
Then you should strategize how to price yourself based on this envelope.