Have you ever wondered how much you could earn by renting your second home on platforms like Airbnb? Do you have an extra room in your apartment in the centre and would like to understand how much it could earn you by renting it in the short term? Are you planning to buy a property to use as a short-term rental and want to be sure you are making a good investment?
InsideBnB has made available its profit calculator for short-term rental properties on Airbnb, a tool that will answer these questions. The profit calculator allows owners of houses and apartments to know very accurately the profit that a property with certain characteristics and in a certain area has generated on average in the previous 3 months. It is therefore not simply a service that provides an estimate of possible earnings. InsideBnB calculates profit starting from real data, collected and constantly updated, relating to structures all over the world, evaluating both historical data and bookings currently existing in a certain area.
If you are already an active host on Airbnb you will be able to check if your properties make as much as other similar properties in the same area; if you are an investor, however, you will be able to rely on certain data to estimate the yield of an investment in a specific geographical area.
This is real data that feeds a calculation system created for properties similar to yours or those that interest you. Other tools found online mainly start from statistical/historical processing. Although the statistical/historical data may be important, it is not the best starting point for this type of evaluation. The tourism market is constantly changing (both for contingent reasons such as COVID-19 and structural changes in demand) and relying mainly only on historical data or only on forecast data almost always produces an inaccurate or at least too approximate estimate. The calculation based on real and current data eliminates this defect, producing a precise and unequivocal result.
You can use the InsideBnB profit calculation tool by choosing your area of interest, defining a geographical radius to take into consideration and specifying the characteristics of your property or what you imagine could become one. By carrying out the search you can check:
- What was the average gross profit for properties matching your search in the last 3 months
- how many days per month the properties were occupied by guests (occupancy rate)
- the number of similar properties examined in that area to produce the result
- an estimate of how much, by optimizing your offer thanks to the tools present in the Host Platform, it would be possible to increase the profit generated by the same properties.
Airbnb profit calculator is available here.