Managing a rental business requires a lot of work. One needs to do plenty in terms of maintenance, like ensuring that the place stays in the top shape, supervising cleaning, handling communications with the guests, offering the best customer service, making sure that the guests respect the house rules, etc. Overall, all this work can become a little too much for just a single person. As a result, many times, the hosts ought to outsource services.
But outsourcing services imply expenses, which indicate an overall decrease in profits. Therefore, a good plan of action in such a scenario is first to figure out your place’s worth. Once you have a grasp on the charges you might levy on your guests for overnight stays, it will become easier for you to figure out your expenses and take care of your profits.
But how can one determine the actual worth of property? Is there any way of knowing if what you are charging your customers is fair, or if there is further scope of escalating the prices? Well, there is definitely one way of determining that, which is by using the Airbnb Host Calculator. Using this calculator can make things very simple for you. But if you have never before heard about this calculator and you are interested in knowing all about it, then follow our next section.
What is an Airbnb Host Calculator? How does it Work?
Airbnb host calculator is a tool that uses your location and other relevant information offered by you to calculate the estimated overnight prices of your property. Using this estimate you can decide how much you want to charge your customers if you are already running an Airbnb rental, or you can determine the income potential of a place assuming you are thinking about setting up a new listing.
For using this calculator, you will need to enter your property’s location on the Airbnb Calculator. Then the calculator will ask you for some other details regarding your rental. When you fill-up all the necessary information, the tool will give you an estimated price. Also, it is worth noting that Airbnb offers specific calculators for different markets across regions. Because of this, you can access the data of your particular areas.
What are the advantages of using the Airbnb Host Calculator?
Before using any tool or application, it is essential to understand all its benefits and drawbacks to realize its full potential. So, here the benefits of using the Airbnb calculator.
An Airbnb Host Calculator is an essential tool as it can help you in figuring out the present and future market trends. Using this tool, owners can make informed decisions regarding the most lucrative locations for making future investments.
If you are an Airbnb host, it becomes significant for you to be aware of the pricing trends. It can help you grow your business.
Apart from these benefits, the Airbnb calculator can also help the host in determining the following projections and calculations.
With the Airbnb host calculator, you can find the capitalization rate that indicates the return rate you can generate on your investment. This cap ratio is determined by dividing the net operating income by the market value. If your property has a capitalization rate of 10% or more, it means an investment is strong.
Using the calculator, you can work out your potential rental income, which is the approximate amount you can make by renting your property on Airbnb. Finding this income can help you determine whether or not it is a wise decision to rent your property.
The occupancy rate, which is the duration of time when the guests occupied your property, can also be found out by the Airbnb host calculator. Some factors that affect this figure include seasonal changes, location, guest review, etc. For running a successful rental business, a host should aim to maintain high occupancy rates.
Cash flow is yet another critical metric that can aid a host in making the right decisions. Only an Airbnb property that has positive cash flow is considered the right choice for renting out.
These are some standard metrics that can be determined using the Airbnb host calculator. Using these figures strategically can help you in gaining the upper hand over your competitors. Using them can help you in growing and expanding your business.
Pro Tip: The Airbnb platform offers many different Airbnb host calculators that you can choose from depending upon your needs. Based on the type of calculator you choose, you will generate forecasts that you can use for the best strategies for your business.
Do Airbnb host calculators give accurate figures?
Airbnb host calculator is an accurate and precise tool that gives you essential error-free estimates in a matter of seconds. This calculator collects data from reliable sources like Redfin, MLS, and Airbnb directly for determining results. These tools are what the experts use when preparing reports. Some of these tools are so vital that they are not even allowed to be used by anyone outside of the real estate sector, making Airbnb calculator a crucial tool for Airbnb hosts.
Which are the best available Airbnb host calculators?
For running a successful rental, apart from hard work, smart work is also necessary. Therefore, it is vital that you keep track of important figures when preparing strategies for the upcoming year. Now, for doing that, one should only depend upon reliable and proven apps. So, here are some popular tools that can come in handy when you are calculating your Airbnb profits.
Using this tool for devising rental strategies can significantly help as Mashvisor uses data from about 4,50,000 properties before dropping results into your inbox. The tool pulls records from all the cities that it covers before reaching any conclusions. It uses heat maps to pinpoint areas that match your research criterion, and it also offers you an exact record of how many rental properties you have located in your city.
Besides this, Mashvisor is also the right choice for hosts who like receiving data in a comprehensive format. The tool claims that it conducts 3-months’ worth of research in just 15 minutes and prepares a detailed but straightforward report that anyone can easily understand.
LearnAirbnb is another popular and reliable tool that you can trust for calculating accurate rental prices and return on investments (ROI). The device is unlike any other available out there in the market in terms of its exceptional services. LearnAirbnb offers hosts an all-covering financial guide for their business model. One can think of it as a downloadable template that uses formulas to calculate financial statements for businesses.
The tool is specifically useful for someone who is about to start a rental business. It can help you determine your start-up and recurring costs that can help you better manage your expenses and revenues. Also, if that is enough, with the LearnAirbnb tool, you can analyze your pricing strategy too. It will also help you with a better understanding.
AirDNA is yet another tool that offers you useful services. Using this tool will not only give you a concise estimate of your revenue and pricing statements, but it will also give you a chance to compare the performance of your rental with others.
Besides this, AirDNA also helps you analyze new short-term rental trends that can aid you in making informed decisions. The tool can also prove helpful if you are thinking about extending your property portfolio by assisting you in analyzing rental data from more than 80,000 cities. Thus, in this way, it can help you in making enlightened decisions about where you should buy a new property.
Apart from the Airbnb host calculators, there are other software products available on the market that can help you determine rental prices. Hosty is one such Airbnb Management App. With its Airbnb Automation feature, the price adjustments can be managed conveniently.
The Airbnb Host calculator is a useful tool that the hosts can use for determining significant figures like their overnight prices and return on investments. Using these figures while preparing a strategy can help you make the right decisions that can aid your growth. Relying on the research of these tools will also help you in gaining an edge over your competitors.
Now, once you have set this all up and your rental business starts flourishing, the next step is to use apps and software to multiply your growth. One such software that you can consider is Hosty. Hosty makes managing things easier by offering you numerous useful features from Automation and Multi-Calendar to Unified Inbox and Reservations Manager. Using Hosty, you can smoothly manage your guests’ conversations, adjust your calendar, handle the bookings, and do much more!
Discover 9 Airbnb bathroom essentials.