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AirDNA and AllTheRooms
When you’re thinking about acquiring a vacation rental property, it’s important to have all the information possible. Knowing how other nearby rentals are faring, especially ones in the same neighborhood, is crucial.
Luckily, resources like AirDNA’s MarketMinder and AllTheRooms Analytics give you plenty of data to pore over. In this article, we’ll give you a look at what these two platforms offer.
AllTheRooms Analytics To See Long-Term Rental Trends
As we mentioned in our article about the acquisition phase, it’s important to get a sense of the city and neighborhood. How desirable are rental properties here, and how does this one stack up to the competition? Both AirDNA and AllTheRooms will help you see the current occupancy rate and the average daily rate (ADR) guests pay at nearby rentals. This will give you a great idea of the demand for properties, how much guests are willing to pay, and what a realistic return on investment looks like.
Where AllTheRooms Analytics sets itself apart is by offering a five-year historical look at the area and a five-year outlook on its future. This gives you a comprehensive view of where the local rental market’s been and where it’s going. During the COVID-19 pandemic, when it’s hard to know how much to trust recent numbers, this long-term outlook is particularly useful.
To get a sense of how AlltheRooms Analytics tracks these trends, you can check out its case study on Puerto Rico. By looking at ADR, occupancy rate, active listings, and gross revenue, AlltheRooms can tell how rental properties in the territory have recovered in the years since Hurricane Maria in 2017.
Comps And Evaluating Price Fluctuations With AirDNA’s MarketMinder
Like AllTheRooms, AirDNA’s MarketMinder offers a robust look at your local competitors and the health of the neighborhood’s vacation rentals. Where MarketMinder shines is in its customizable comps list. Finding comps during the acquisition phase is important to understand the local market and buy the property at the right price. MarketMinder compares the rental you’re looking at with those of similar size nearby. This comps process can also help you decide what a competitive per-night rate will be once you own the rental.
Speaking of pricing, MarketMinder gives you daily suggestions on how to price your rental. You can even customize the settings to see what a more aggressive rate would look like during the high season. Feeling generous and want to give visitors a discount during the low season? MarketMinder can also tell you what a discounted rate should be, given the current demand. During the acquisition phase, this feature will give you a realistic idea of how much rates will fluctuate around the year.
Both AirDNA and AllTheRooms offer rental owners useful data during the acquisition phase. If you’re looking for a helicopter view of the neighborhood’s rental history, then AllTheRooms is your best bet. Meanwhile, those struggling to figure out comps or a realistic per-night rate will enjoy AirDNA’s daily rate suggestions and customized comps.