The 5-Step Guide to Airbnb Real Estate Investing

The short-term rental booking boom is here, and it’s likely to continue for the months and years ahead. There are so many markets that offer a significant return on investment for hosts and investors alike that it can be a challenge to pinpoint the top Airbnb locations for real estate. 


Even with a growing number of white-hot markets, getting into the short-term rental space can be daunting — but it doesn’t have to be. We’ve compiled a quick list of essentials aspiring hosts and investors need to know and the tools to tackle any investment in the STR space. 

1. Identify The Best Places To Buy Rental Property


In order to get a high-level understanding of markets with the most growth, start your research with AirDNA’s 2022 best places to invest report. It reveals the top Airbnb locations by country, along with revenue potential for short-term rental investments.

See the Best Places to Invest Around the World

2. Analyze Airbnb Investments and Real Estate Data In Each Market


Once you’ve decided on your investment’s location, access MarketMinder to dive deeper into its neighborhoods, zip codes, and adjacent markets. Each market you analyze will reveal a Market Grade, average revenue and occupancy figures, quarterly growth, amenities, rate analysis, pacing, and more to spot the market that fits your portfolio, niche, and goals. 


In MarketMinder, you’ll see the following tabs, giving you unparalleled data to determine which zip code or neighborhood aligns with your goals. Be sure to take the time to explore each area and to fully understand your area(s). 


Virtually all markets have high and low seasons. This is especially true for destination markets like lakeside retreats, ski towns, and beach towns. Take a look at monthly and daily RevPAR to see when you can expect revenue growth, historical travel trends, and booking windows each month of the year. Remember: if you’re in a highly seasonal market, you’ll want to factor that into your pricing strategy. 


Pacing tools in MarketMinder show you future demand six months out to get a sense of bookings windows, booked rates, year-over-year comparisons, and occupancy rates in your markets. MarketMinder enables you to compare your markets with average historical rates and market projections to get a sense of Airbnb income potential. 


While some markets are flooded with vacation rentals, others are hidden gems with high occupancy rates. You can compare the number of active listings with quarterly rental growth, annual revenue trends, occupancy rates per city, and types of amenities to know which property types will fit your portfolio and local competition.

3. Market Comparison for Annual Revenue Growth

Market Comparison is a hidden gem within MarketMinder, revealing trending revenue and occupancy numbers for each market you explore. If Panama City Beach is your go-to city for an investment property, make sure you analyze top-performing zip codes as well as the size of the property to maximize revenue and make your investment profitable. If you aren't sure which city or zip code to invest in, you can also enter up to 4 locations at a time to compare Airbnb revenue, occupancy, and rate growth. 

In Market Comparison, be sure to toggle between zip codes and neighborhoods, studio to 6+ bedroom counts, and the number of guests the property can accommodate. Don’t forget to compare trend lines for revenue, occupancy, historical, and year-over-year ADR to choose the most profitable combination. 

4. Estimate Income With The Airbnb Calculator


Once you’ve decided on your market and bedroom count of choice, you’re ready to research rentals for sale. Zillow is a great place to start looking for listings that fit your criteria and can help you reach your rental income goals. Once you filter for budget and property attributes, gather a few addresses of interest, and head back to MarketMinder. Within Rentalizer, the Airbnb Calculator, you’ll immediately see your Airbnb income potential, as well as other essential markers to make your decision. 

Enter any address and immediately receive annual revenue and occupancy projections. Take it one step further by entering the cost of the home and your projected major expenses into our financial calculator to receive operating income and cap rate to complete your investment research. With Rentalizer, estimating rent for your short-term property couldn’t be easier.

Rentalizer is great for those curious if Airbnb is profitable, investors identifying profit margins for their portfolios, individuals seeking new ways for passive income in 2022, vacation rental managers seeking to expand their management, and so much more.

New in 2022: Rentalizer now shows the 2-year historical trend and seasonal forecasting in our estimates. Our confidence intervals will provide high and low estimates for each month of future revenue potential. Tracking the history of your vacation rental's annual revenue estimate will address whether or not your rental market is appreciating in value. 


If you’re at the point where you’re wondering what the Airbnb rates in your area are like and how much to charge, MarketMinder has the answer. Once you purchase your property and list it on Airbnb, you’ll want to connect your listing to MarketMinder to access customized comp sets and receive your free booking performance score for each listing. You’ll receive:

Booking Performance Scores for each connected property

Competitor insights and performance metrics

Personalized property-level dynamic pricing

The data in Custom Comps will keep your prices optimized, occupancy to hit your business goals, and competitor insights handy to maximize your revenue potential — all in a single, easy-to-navigate dynamic Airbnb pricing platform.

One benefit to using Custom Comps is to use Smart Rates, our Airbnb dynamic pricing tool, against your personalized comp sets. Visualize pricing trends to see if your comps are being booked at higher rates or more frequently than you, with a recommended rates calendar to help adjust your rates 12 months out. *Pro-tip: You can change the price settings to focus on occupancy rates vs aggressive revenue goals.

Not only can you see your comp rates in our pricing feature, but also keep tabs on when they’re being booked, how far out, and rate projections. You’ll be able to spot travel spikes in advance and outsmart your competition for each property you’ve connected to MarketMinder. Filter your comps based on amenities, distance, ratings, reviews, and more, and select a truly personalized comp set.

Excel at Airbnb Real Estate Investing with MarketMinder

Here’s the truth: finding the perfect property and then pricing it competitively can be a total slog without the right tools. Fortunately, Airbnb real estate investing couldn’t be any easier with MarketMinder. 

Whether this is your first glance into the short-term rental and real estate space or you’ve flirted with jumping in for years, MarketMinder gives you the tools, data, and confidence you need to operate a successful short-term rental business.

But don’t just take our word for it. Jump into MarketMinder today and see how easy it is to hit the ground running and watch your Airbnb revenue grow.

Airbnb real estate investing can be incredibly lucrative — if you have the essential resources on your side. AirDNA's guide has you covered. Read now!

The 5-Step Guide to Airbnb Real Estate Investing

QUICK NAVIGATION

The #1 Short-Term Rental Platform