Why I don't use Airdna for my short term rental research

[Melissa Nash]

I know, I know.... my opinion might not be popular, but hear me out. As an owner of 6 STR properties I will occasionally test it out and put in one of my addresses in Airdna, and they are never correct. Some are way too low, and some are too high. But..... it is a general "idea" which is not a bad starting point. It's a source for general info and a starting point for your own research, and should NOT be the only research you do. You need to put in the time and know that STR investing is not passive. It's definitely active investing for higher success.

A friend asked me the other day how much he thinks he can make on a property in a market he found and spouted out the basic numbers from Airdna's data. 

My answer was...."well it depends". Here are all the questions and variables that I came up with at the top of my mind, for him so that I could better review his numbers. 

1. Location. Is everything. How far are you from restaurants, lake, ski mountains, hikes, etc. 

2. Roads/parking. Can you access property easily in winter? Is parking easy, hard, etc? 

3. Lot. Is the lot private? Views? Flat? on a hill? etc. 

4. Decor/ Architectural Style. Is this a new remodel? Original? New or old appliances? Grandma's old decor/ Ikea decor/ or professionally designed and staged? Is the home unique? An A-frame?  architecturally unique? A unique stay like a dome house or tree house? These do matter and affect price. 

5. The actual listing. You need to know how to market the listing with key words, photos, etc. All of that matters. Airbnb has an algorithm and you need to know the keywords and the strategies needed. Are you a super host? or co-host with a super host? 

6. Amenities. Hot tub? Fireplace? Pool? A/C? what is included? 

7. How many it sleeps. More heads on beds = more money

8. Management. Are you self managing or hiring out? Some management companies market outside of airbnb and those numbers you wouldn't see on airdna as those are private listings. 

9. Cleaning fees/ Pet rules

10. Price. 

11. Who is your client? Can you rent year round? Is it only touristy a few times a year? What events are nearby that you can market for? Etc, Festivals, shows, events, hospitals, universities, etc. 

12. Are STR's even allowed, limited or could be shut down. So many cities are closing down, reducing, or fining short term rentals and this is info that you need to be on top of and know about. I was helping a client run numbers on an STR in Anaheim about 5 years ago, around the time they were about to be banned from the city. Had we not been on top of the city meetings we would not have known that the ban was about to be passed. This would have turned out tragic. Do your extra research.

I am sure that I missed some, and while this is not a super detailed list, I think that I made my point that you need to do a LOT more research to actually be successful with a short term rental.

Have fun out there, and yes! it is possible to create financial freedom through cash flowing real estate and short term rentals and I am proof of that. Hope this was helpful!

Melissa

Real estate investment counselor / Investor for cashflow for financial freedom

[Luke Carl]

Enemy Method is the deal. Google it.

Airdna is great but it is what it is. I look at it for 3 seconds and I'm back to the enemy method.