Accuracy of Pricelabs and/or Airdna Market Analysis

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Accuracy of Pricelabs and/or Airdna Market Analysis

Calvin Berstler
Member since 2021 · 8 posts · 3 votes

Hello, I was wondering if anyone could share from recent *experience* how accurate a Pricelabs, Airdna, or other market analysis software has been for them for estimated annual income? I KNOW there are a lot of factors to consider, but I just wanted to hear any examples anyone could share from their own personal experience when making a STR investment decision in an area (ie. Pricelabs Market Dashboard in a certain area predicted a 2bd/2ba in a certain area could make $35K/year with 65% occupancy, was that spot on for you or deviated plus or minus $10K).

Although thoughts from people with no experience is appreciated, I was hoping to hear from individuals with actual personal experience making a STR/MTR investment.

Thank you!

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
3y

We tend to beat the projections with the combination of effective revenue management + listing on 15+ platforms.  This is for airDNA, which we use.  I would not recommend the free version as the number it generates could be skewed.  We use it as a starting point.  If I want to run a 3/2/2 pool house in Clearwater I enter it and then examine the comps (it gives the links to comps in paid version).  From there I can see if they are true comps, or adjust up or down based on if they are inferior or superior.

[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
WebsiteView Page
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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Do a search. There are dozens of threads on this topic.

    0Reply
  • Calvin Berstler
    OP
    Member since 2021 · 8 posts · 3 votes
    3y

    I looked already and wanted to re ask the question… new year new data!

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y
    Quote from @Calvin Berstler:

    I looked already and wanted to re ask the question… new year new data!

    Well an algorithm is an algorithm. In the end it can be both accurate and inaccurate.

    It will all depend on the area and the number of comparable properties there. In some areas it can get pretty close. Some are waaaay off.

    You can use them for a baseline or first way to check, but then start drilling down using the enemy method. Check AirBNB and VRBO to see what is out there that is similar and run the analysis that way.
    0Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 754 posts · 504 votes
    3y
    Quote from @Michael Baum:
    Quote from @Calvin Berstler:

    I looked already and wanted to re ask the question… new year new data!

    Well an algorithm is an algorithm. In the end it can be both accurate and inaccurate.

    It will all depend on the area and the number of comparable properties there. In some areas it can get pretty close. Some are waaaay off.

    You can use them for a baseline or first way to check, but then start drilling down using the enemy method. Check AirBNB and VRBO to see what is out there that is similar and run the analysis that way.
    My clients get 20%-60% more revenue than airdna says. There are many reasons for this. 
    Bottom line, I recommend you connect with a really good STR PM and a really good seasoned high volume STR specialized real estate agent and talk about cost VS revenue VS expenses.
    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    Both platforms are fairly accurate if you know how to use the software correctly. Although Pricelabs would be more "what neighborhood is the best in this area?" then a nationwide search. Many people are able to outperform Airdna due to amenities they've added or the 5-star service they provide. Thousands of STR operators and even loan officers use Airdna with great success, but again make sure you know how to accurately pull numbers.

    [email protected]330-557-3021
    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    3y

    We tend to beat the projections with the combination of effective revenue management + listing on 15+ platforms.  This is for airDNA, which we use.  I would not recommend the free version as the number it generates could be skewed.  We use it as a starting point.  If I want to run a 3/2/2 pool house in Clearwater I enter it and then examine the comps (it gives the links to comps in paid version).  From there I can see if they are true comps, or adjust up or down based on if they are inferior or superior.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    2Reply
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