Our proprietary AirBNB investment calculator, creates an estimated revenue, average daily rate (ADR), and occupancy rate for an address based on historical performance data of comparable properties near the address entered. The name for this tool and the one used throughout this tutorial is RentVal.
RentVal is a great tool to help you see the potential of a property as a short-term rental. After you enter any address, our algorithm will search for up to 50 comparable properties within a 10-mile (15km) radius. We then select the 12 most comparable properties and use a weighted average to show the potential of the address you have entered.
For example, the first comp shown in the list of 12 will have a stronger impact on the potential figures compared to the 12th property. These properties are selected based on their proximity to the address geographically and how similar they are in their bedroom, bathroom, and guest count configurations.
How do we Identify Comparison Properties?
We measure the performance of the chosen comparison properties across five key metrics:
Revenue for comparison properties is calculated from the last 12-month performance based on the reserved revenue plus cleaning fees.
Days Available are the number of days a property was available for reservation in the past 12 months.
Occupancy Rate = Total Booked Days / Active Listing Nights. The calculation only includes vacation rentals with at least one booked night.
ADR is the average daily rate (ADR) of booked nights in GBP. ADR = total revenue / booked nights. Includes cleaning fees.