Does Mashvisor the Airbnb analytics software is accurate?

Question

Hi everyone,

I'm investing and own a few traditional rental properties in PA. Recently I've started to look over the Airbnb / short term rental market which seems to me much more profitable.

I had a session with one of the CS representatives of Mashvisor, real estate analytics software, and everything looks good in terms of all the data that they provide, in order to make a wise decision on where to invest, occupancy rates, cash on cash forecast and more.

Mashvisor also have a traditional residential rental analytic data. When I checked their data for the traditional Rentals on the areas that I'm investing in, I've noticed that the information that they providing there not really related to the reality. I know exactly what are my expenses, profits, gross and net ROI's and it didn't match at all to the information that Mashvisor presenting for the properties in this area.

My bottom line question is, should I rely Mashvisor or any other real estate analytic software on making my investments and moves on the short term rental market ?

I will appreciate if people who own and does short term rentals to advise me on that.

Thanks in advance,

Liran

Greg Schuricht · Answer

I signed up for Mashvisor about 2 months ago, kind of on impulse after getting the initial walkthrough.  They do a good job of downselling during that demo.  Long story short, I wouldn't recommend it.  The site is somewhat unstable, and prone to crashing.  For whatever reason, their investment property finder defaults to the Chicago market, and sometimes will revert to that while you are drilling into the data on other markets (why Mashvisor, why?).  I can't really speak to the accuracy of their projections, but I will say that I've gleaned more from studying neighboring listings than I ever did from Mashvisor.  In my opinion, take a pass.

Paul Sandhu · Answer

I don't look at any of the VR analytics websites.  I do my own research with my boots on the ground.  Each day I drive by my competition, which is a few motels by the refinery.  I count the number of contractor vehicles.  What's a contractor vehicle?  It's a 3/4 or 1 ton truck with a company name on the side.  The bed of the truck has a toolbox or diesel tank to refuel gen-sets.  I don't bother counting minivans, sedans or little coups.

If there's a lot of those vehicles in the lots, most of my places are rented out.  When I'm slow, the motels are even slower.

You might want to count the number of minivans and other family type vehicles in the motels of your market.

Loren Clive · Answer

Also, when you start to list a property on VRBO they will calculate gross rental income for you. You just type in the address and the bedrooms and bathrooms. Not sure how accurate this data is but I'm hoping it's spot-on because it was double what I thought I could get for my most recent acquisition🤑

Loren Clive · Answer

For Maui, I also found the Airdna data way lower than what I actually get. I research a particular complex as that is a closer match than just any vacation rental in a general area. I call up folks on VRBO and ask them what their average occupancy is and seasonal rates then calculate gross rental income. I can tell you anywhere on Maui you get 70% occupancy easy.

now I'm looking into buying on the big island, and it's funny how many negative reactions you get from people when you ask them this kind of information.

Hope this helps!

Luke Carl · Answer

@Liran Afergan. Mashvisor and Airdna can be useful tools if you understand their weaknesses. Consider Airdna the Bumble of STR. How many ignored you vs how many swiped right? Ok lame joke.

Best way to figure out how much you’ll make is figure out how much your neighbor will make by studying their listing. Obsess over a few listings for 20 minutes and you can figure out the numbers.

Even better find a realtor that OWNS several STRs in the market you’re looking at. Although that can prove challenging and there’s still a chance they won’t know what they’re doing.

Good luck!

*this was typed on an iPhone. Although it can’t be worse than the title *laugh cry face emoji

Paul Sandhu · Answer

@Liran Afergan  Shoot for 6 months of gross rent to pay for the purchase price of a property.   It may take 7-10 months to get 6 months of rent.  There are vacancies, people falling off the porch and breaking an arm, one tenant screwing around with another tenants wife, someone overdosing, finding a dead body, confronting an intruder in a STR house, normal things like that.

Cliff H. · Answer

@Liran Afergan using Beyond Pricing and it seems pretty accurate to real world pricing. AirDNA was good pre-purchase to get a feel for market pricing. AirBnB’s smart pricing is notoriously below market because AirBnB wants you rented out like a hotel every night.

There’s no right answer here. Comp shop the tools. See which make the most sense. Most offer a free trial. Others only charge based on actually bookings. Either way it’s easy to give them a test drive.

Just as with real estate, finding good comparables is the key, then work backwards from there in understanding how you’re different.

Liran Afergan · Answer

@Paul Sandhu

Thank you Paul

Liran Afergan · Answer

@Lucas Carl

😂

Thank you Lucas. That's very helpful. I'm actually trying to understand on what type of information that Mashvisor or Airdna data should I rely on.. will appreciate if you can help me to figure that out.

Jennifer Creager · Answer

I used it for a while to analyze short term rental rates in Maui. I found the data was averages, rather than specific to the properties that it was listing. I used it as one source of data, but ended up doing my research directly in AirBnB and VRBO to be more accurate.

Does Mashvisor the Airbnb analytics software is accurate?

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