There are many Airbnb profit calculators out there, but most of them require that you input the rate and occupancy. How can you possibly get an accurate estimate if you are taking a guess?
Being a little optimistic could result in an unrealistic expectation that could cost you money. Keep reading below for tips on how to get an objective data-driven estimate.
Guessing rates and occupancy or hoping for a good return on your new investment can be a recipe for disaster… You do your research before buying a new phone or computer and you should do the same when investing on a property to list as a vacation rental or Airbnb.
First things first, acquaint yourself with the local landscape. Research listings in your area to get a better feel for how often they rent and what amenities they have or use.
Make sure your property is in alignment with the local offering. This will help confirm if your property’s rental performance will align with the surrounding market.
Leverage existing tools to get some insights into the market’s historical statistics before you start calculating your potential profit.
At the very least, take a look at the high level stats in Airdna which will provide you with average rates and occupancy. Or, even better, you can make use of the Airbnb profit calculator from Hostology, which will give you a best, average, and worst case scenario based on the bottom, mid, and highest performing properties in your area and will also allow you to create a personalized estimate for your property.
Whichever approach you take, remember that these are estimates based on historical performance and will not guarantee your property’s return. Do your research, talk with local hosts and property managers, and make sure you understand the risks before diving all in. Do not assume that your property will be a top performer, it’s always best to plan for the worst and work to become the best!