how to estimate your monthly income
There are several ways to estimate your monthly income. We recommend the following three methods. You should research all three to get a better idea of what your income will be.
Monthly income estimates
1. Airbnb's estimate
Airbnb provides an average price per night and even provides you with an estimate of what you could make before you even list.
This number is based on an average of hosts in your area and takes seasonal variations into account. Keep in mind that many hosts are making a lot more, but many are also making less.
Keep in mind that your situation in unique and no one site will give you all the answers. It is important to consider all estimates in order to make an educated estimate of your monthly income.
2. Market data
As Airbnb grows, there are several websites that offer market data for Airbnb and short-term rental properties. Many of the paid sites offer enough free research to give you a pretty accurate estimate of your income.
Eliot & Me (FREE)—Eliot & Me allows you to input a specific address, providing you with an average daily estimate, average weekly estimate, daily price for high and low seasons, and much more. You can claim your property and edit details to get an even more accurate estimate.
AirDNA (PAID & FREE)—AirDNA provides detailed market and data analysis for Airbnb investors.
You can sing up for free to their market minder, which gives you access to daily rate, occupancy rate, and revenue data by city and neighborhood. Their paid investment explorer and data services offer a free trial that you can use to estimate your income.
AirDNA also offers free data on the best places to invest in 2017, with a series of interactive charts.
Beyond Pricing (FREE)—BeyondPricing.com is free, but only works once you have a listing and connect it to their system. However, it is a fantastic resource for pricing once your listing is up.
Two important pieces of market data that these sites generally provide for free (if you look) are
(1) the average occupancy rate and
(2) the average nightly rate.
Depending on where you plan to host, some sites provide occupancy rate for your city and even your neighborhood or zip code. Keep track of the different information, including occupancy rate and nightly price, that each website provides in our income worksheet.
3. Your competition
It is always helpful to start by looking at your city/ area in general, and then get more specific. Search for rentals in your city with similar characteristics like
Number of bedrooms
Number of bathrooms
Proximity to transportation
Check out the hosts in your area. Look at how many hosts are operating in your neighborhood or on your street and check their calendars. Are they booked well in advance? Are they booked in the off-season? Do they have different prices for different times of the year?