Airdna is such a valuable tool!
From choosing your market, to finding out how much the neighbor next door is making🤫
As a preface to this newsletter, I wanted to be clear on what my goals are and what these weekly posts will entail. I am using this newsletter as a way to document my journey of learning the process of real estate investing, and basically dump all the information I have learned into this funnel. I am in no way trying to act as a “guru” or mentor. I am most likely in the same boat as a lot of you reading this, and I think that brings a lot of value. Most investing blogs and videos are all about those that have done it already and are at the top. I want this to be more relatable to the average person who wants to get started, and can follow along with my wins and losses!
Happy Wednesday everyone, today I’m going to be talking about the website Airdna.co, and why it is so valuable when researching a potential investing market. From choosing a market that you want to invest in, to getting real time numbers from rentals in that specific market, Airdna makes it a heck of a lot easier and quicker to do market research.
What is Airdna?
Airdna.co is a website/software that has real time data on short term rental markets all around the world. You can simply type in a market you are interested in, and it will give you information like the areas average daily rate, the average occupancy rate, and even potential revenue based on different times of the year. If you already picked a market, and know you’ll be investing there, you also have the option to purchase that location, which gives you even more data like the actual airbnb’s in your area and how often they are renting/the revenue they are bringing in. This data is extremely helpful when looking to purchase rentals because it literally shows you the STR’s that are successful, as well as the ones that are struggling. You can then take that information to better your own research and make a solid plan for yourself.
Rentalizer
One of the options I absolutely love to use when I am researching specific markets is the rentalizer tool. You type in the exact address of a property you are looking at, and it takes data of the surrounding area to give you an estimate of what that property can make as a short term rental. Here’s an example below to show you how it works:
So I chose a property I was looking at in Vermont, and typed in the exact address as shown on Zillow. From there, I type in the number of beds, baths, and guests the house could hold. Once you hit “update” the software goes through all of the currently rented 4 bed 3 bath homes in the area, and takes an average to give you an estimated daily rate, occupancy rate, and revenue. If you purchase this location, you can also view forecasted information and data that shows where the market is trending and if it would be a good investment in the long term. This is one of my favorite tools to use on airdna because it gives me a quick number that I can then dive into a little deeper to see how realistic those numbers are. Now, I have gotten some estimates from airdna that I thought were way too high or way too low, and I think that is just the fact that these are averages, and outliers can have an affect on the data. But If you already have knowledge of the market you’re looking at, this is a great tool to confirm and check your data with.
Real Time Numbers
When you purchase a specific market ($40 for the month), you gain access to real time data of the actual rentals in your market, and how much they are making/renting. This is an amazing way to get a feel for how the units in your area are performing, so you can see what others are doing right! Here’s an example of a listing in the area I’m looking at now:
Yes, you are reading that correctly, in the past 12 months this home has held a 91% occupancy rate, at a $1,070 Avg. daily rate, grossing over $342,000 in 351 days of availability. Doesn’t it kind of feel illegal to know how much these people are making on their rental? Maybe, but this is the kind of data you pay Airdna to find. And they have this specific data for every single airbnb in the market that you choose to purchase. I’d say it’s worth the $40.
Recap
As you can see, Airdna is an extremely useful, and in my opinion, priceless tool when conducting market research. Having the ability to pick a market and essentially have all the data you would ever need at your disposal is so valuable. While the data always has the potential to be skewed a bit, using this platform as a supplement, not the end-all-be-all, will put you in the right direction for your future short term rental.
And no, this is not sponsored by Airdna, but maybe one day it will be, so hey, feel free to subscribe below to help me out in the mean time 🙂. You’ll receive an extra email from me every week! Anyway, I hope you all enjoyed this weeks post, and learned something you didn’t know before. As always, feel free to share this post with anyone you think might be interested. Cheers, and Happy Halloween!
