Thinking about doing Airbnb arbitrage but not sure if it will be profitable? Before you jump into something that costs time and a lot of money, you should do some research to determine if Airbnb is profitable in your area of choice. With the right combination of pricing tools and revenue calculator, and using this simple trick within the Airbnb app itself, you can get the data right away.

Start with this Airbnb Revenue Calculator

AirDNA is one of the most well known tools for STR market research, as the name suggests, it were built specifically for Airbnb. Their revenue calculator allows you to quickly estimate how much you can earn by renting out your property. Here’s how to get started:

  • Enter Your Address or Zip Code: Start by inputting the address of your property or simply use the zip code for a broader look at your local market.
  • Add Property Details: Fill in the number of bedrooms, bathrooms, and the maximum number of guests your property can accommodate.
  • Get an Estimate: The tool will generate a rough estimate of your yearly gross revenue based on local market data.

This gives you a snapshot of how much income you can expect from your Airbnb property in a specific area. It’s a great way to set realistic expectations before making any major decisions.

Use AirDNA’s Market Research Tool

In addition to the revenue calculator, AirDNA offers a Market Research Tool to help you dig deeper into your area’s performance. This tool provides insights like:

  • Annual Revenue Average: Get a sense of how much Airbnb hosts in your area are making over the course of a year.
  • Average Daily Rate (ADR): See how much, on average, hosts are charging per night for their listings.

By entering your property’s address or zip code, you can get a comprehensive overview of how the short-term rental market is performing in your city or neighborhood. This is key to understanding whether Airbnb is a viable option for your property.

Use PriceLabs to Automate your Rates

One of the best pricing tools around for Airbnb is PriceLabs. PriceLabs offers a 30-day free trial, which is perfect for you to get a feel of how this pricing tool works before you invest any money. After registering for a Pricelabs account, you have to connect your Airbnb account, which will then pull all your listings into your dashboard. After this, it will analyze real-time market data and suggest nightly rates to maximize your earnings.

  • Add your listing details, such as number of bedrooms & bathrooms and minimum & maximum nightly price.
  • See Your Nightly Price: PriceLabs will automatically calculate optimal pricing based on local demand, seasonality, and competitor rates. This data gives you a more accurate picture of what you can charge and how much profit you could make.

Create a Draft Airbnb Listing

Another quick way to get a feel for your potential profits is to create a draft Airbnb listing. Without having to go live, creating a draft listing allows you to access useful data about pricing in your area.

  • Set Up a Draft Listing: Simply go through the steps of creating a new listing for your property. Fill in details about the space, number of guests, and amenities.
  • Connect to PriceLabs: Login to PriceLabs and reconnect your Airbnb account and it will automatically pull new listings into the dashboard. Your draft will appear in the dashboard.

Click on the listing to see the pricing screen, fill in the details, and you will see the calculated nightly price on the calendar. These figures will give you an idea of your projected revenue so you can make a better informed decision on your arbitrage.

By combining the insights from AirDNA and the pricing data from PriceLabs, you’ll get a good idea of what your profits will be. NYC is a different animal than other cities because it’s made of five boroughs and each borough’s economy is different and that means STR profits will be different. Manhattan properties cost more but they make more money, and with these tools at your fingertips you can choose wisely.

Let Us Handle the Rest!

While these tools can give you great insight, managing a short-term rental can still be a time-consuming process. That’s where we come in! At KaibaCorp Vacation Rentals, we provide full-service property management to take the stress off your plate. From optimizing your listing and handling guest communications to managing check-ins and revenue management, we do it all. Reach out to us at the contact form in the footer to get started!