As a real estate investor who’s thinking of investing in short-term rentals in 2022, you must be searching for Airbnb data online. As such, you must have come across several platforms, such as AirDNA and Mashvisor. You’re wondering, what is AirDNA?
The vacation rental business has become a profitable venture in the US housing market. Many investors are jumping on board. If you’re a beginner, you can find many tools online to help you conduct Airbnb data analysis.
However, it’s always challenging looking for the right tools to use. You want to use a tool that will help you conduct Airbnb analysis and also provide accurate Airbnb data analytics. Mashvisor and AirDNA are two of the leading platforms that provide essential resources for vacation rental investors.
Today, we seek to answer the question; what is AirDNA? In this AirDNA review, we’ll also compare this site with the Mashvisor platform, their pros and cons, and see which is the better platform.
Related: How to Invest 1000 Dollars in Real Estate
What Is AirDNA?
AirDNA is a leading source of short-term rental data. It also offers a wide range of tools for investors to find profitable investment properties. The platform provides competitive insights, custom reporting, and interactive dashboards covering over 10 million rentals across 12,000 real estate markets globally.
As a short-term real estate investor, you can use the platform to understand and analyze key trends in the vacation rental industry. It allows you to leverage historical data and future predictions to maximize income potential. To find answers to the question, What is AirDNA?, let’s look at the alternatives.
What Is Mashvisor?
Mashvisor, which is an AirDNA competitor, is a data analysis platform that has become extremely popular with real estate investors, agents, brokers, as well as short-term rental hosts and property managers. Why has it become so popular?
The Mashvisor platform is very strategic and particular in the way it organizes and presents its data and compiles them into reports. It pulls its data from the Airbnb site itself and other real estate resources, such as Zillow, Realtor.com, Auction.com, Walk Score, and many others. It even goes a step further and pulls its data from public records, including rentals in the areas that are bank-owned or have been foreclosed.
After that, it provides you with an in-depth analysis of the property. It gives you an insight into the cash on cash returns and cap rates, then divides this data into two categories; traditional rental strategy and short-term rental strategy.
Now that we’ve understood the basics and seen what is AirDNA, it’s time for us to run a comparative analysis of the two platforms.
Investment Property Search
When beginning your journey as a real estate investor, the most crucial decision you’ll make will be about the property to invest in. This single decision will determine how profitable your vacation rental business will be and whether you’ll succeed. While you want to find a property with the best income potential, where do you start?
You may choose to follow a traditional approach where you drive through neighborhoods looking for “for sale” signs. However, this will consume a lot of time as well as resources. In addition, this approach doesn’t allow you to conduct an in-depth analysis of the property itself. In today’s digital age, this approach can make you miss out on a few lucrative investment opportunities.
Luckily, these platforms can be a good alternative for investment property search. Let’s look at them both.
Investment Property Search on Mashvisor
The Mashvisor team has developed two essential tools that come in handy when searching for investment property online. They are:
Mashvisor Property Finder
The Mashvisor Property Finder is a tool developed with the modern and savvy real estate investor in mind. It serves both beginners and experienced investors, as well as both real estate brokers and agents.
This tool helps you search for property in as many as five cities simultaneously. Compared to the traditional approach where you drive through neighborhoods, you can already see how this tool saves you a lot of time and gives you more options from different real estate markets. You can use it to quickly identify the most suitable city with the best property to match your investment goals.
You can also use different criteria to narrow down your property search results. The filters include:
- Property price
- Property type
- Number of bedrooms
- Number of bathrooms
Mashvisor uses a set of machine-learning algorithms that provide you with a list of available listings that match your requirements and expectations. Most importantly, the results are listed in a descending order based on the Airbnb cash on cash return they offer. In short, properties that offer a higher Airbnb cash flow are listed at the top.
After this process, it’s not time to access a comprehensive Airbnb data analysis of the investment potential for each property.
Mashvisor Property Marketplace
The Mashvisor Property Marketplace is another tool that will help us carry out the Mashvisor vs AirDNA analysis. This tool allows real estate investors to search for MLS listings, off-market properties, and foreclosures across all housing markets in the US.
This tool also provides you with a wide range of filter options to help you search for properties that precisely match your criteria. The filters include:
- Property type
- Financing method (whether cash or mortgage)
- Minimum number of bedrooms
- Minimum number of bathrooms
- Airbnb rental income
- Airbnb cash on cash return
- Airbnb cap rate
This tool works similarly to the Property Finder. After setting your criteria, the tool will list properties that match your requirements. You can then access more information and comprehensive investment property analysis from the shortlist of properties.
What is AirDNA? Investment Property Search on AirDNA
Unfortunately, AirDNA isn’t similar to the Mashvisor platform. While you may not be able to find profitable short-term rental properties in any real estate market, the platform offers the AirDNA Rentalizer.
AirDNA’s Rentalizer tool allows you to analyze the investment potential on any property in the US. You can enter the address of whichever property you wish to analyze.
This may be a crucial feature for the AirDNA platform. However, when it comes to the AirDNA vs Mashvisor comparison, particularly what is AirDNA, the tool falls short, especially for investors who’re not sure what they’re looking for.
First-time investors who’re not familiar with the properties on sale may not find AirDNA helpful. It is because they’re usually looking for a platform that offers all the help they can get when searching for profitable properties. Such may also be the case even for experienced investors who may be looking to invest in somewhere new where they may not be familiar with the housing market.
Rental Property Analysis
We’ve seen the major differences between Mashvisor and AirDNA in relation to investment property search. When it comes to rental property analysis, both platforms are quite similar. Both offer the following information:
- Airbnb income
- Airbnb daily rate
- Airbnb occupancy rate
- Airbnb cap rate
- An analysis of startup costs that include closing costs, repairs, improvements, and furniture
- An analysis of recurring rental expenses that include property tax, utilities, insurance, property maintenance, property management fees, cleaning fees, and Homeowners’ Association costs.
However, there are some differences that draw a line between the two platforms. They include:
Both AirDNA and Mashvisor have financial calculators. However, when it comes to a mortgage calculator, only Mashvisor offers one, while AirDNA doesn’t. For a real estate investor, this major difference may be a deal-breaker.
Mashvisor’s rental property calculator allows you to carry out a more in-depth investment property analysis since it also factors in the financing method. If you’re a savvy real estate investor, you understand that your method of financing affects the rate of return on investment significantly.
With the AirDNA Rentalizer, you don’t get cash on cash return estimates for Airbnb properties. On the other hand, the Mashvisor rental property calculator lets you know how much you can expect to make based on the rental expenses when buying the property and renting it out.
Rental comps are an important part of investment property analysis. It refers to the process where you compare different properties of the same type within the same neighborhood. This process is essential since it’s an indicator of how your investment property will perform by comparing similar Airbnb property performance. It also gives you a clearer picture of the Airbnb demand in that area.
Both Mashvisor and AirDNA offer comparison lists for each property you analyze. However, Mashvisor offers more comprehensive and longer rental comps compared to AirDNA competitors. Further, Mashvisor allows you to download the list of comparable Airbnb listings. You can then analyze the data on your own as you see fit and augment the analysis available on Mashvisor.
Related: Rental Comps: What Are They and Where Can I Find Them?
Airbnb Data Analytics
What is AirDNA? What is Mashvisor? Whichever analytics platform you choose to use for your real estate investing, know that it’s only as good as the data it provides. You need to pay attention to how the data is collected and analyzed, as they are critical. The data accuracy is just as important.
Both AirDNA and Mashvisor collect most of their short-term rental data from the Airbnb platform. It means that you can rest assured that the analysis you get is based on the performance of actual Airbnb rentals rather than baseless approximations.
However, there’s one other area that sets these two platforms apart; data accuracy.
Airbnb Data Accuracy: Mashvisor vs AirDNA
The main difference between Mashvisor and AirDNA is the different methods the platforms use to obtain their general values. Primarily, AirDNA uses the mean values, while Mashvisor uses the median values. Does this approach make any difference?
Yes, it actually does. Mashvisor’s approach makes it more robust, reliable, and accurate. This is because the median, unlike the means, eliminates outliers. Outliers can cause serious problems to statistical analyses since they might skew and misinform the analysis.
Another reason why Mashvisor analyses display a higher degree of accuracy is that it only pulls data from Airbnb listings with three or more reviews on the Airbnb platform. It means that the data is from actual Airbnb hosts who have been renting out the property for a while and not homeowners who might have tried their hand in the short-term rental business and failed.
Also, the data on the Mashvisor platform displays a higher degree of accuracy and reliability than the data on the AirDNA website. This level of accuracy and reliability makes Mashvisor stand out as just not only an AirDNA alternative. What is the reason for this?
Mashvisor pulls its property data directly from the MLS (Multiple Listing Service). The MLS is a database established by cooperating real estate brokers to provide accurate data about properties for sale.
MLS allows brokers to see each other’s listings for sale and also connect buyers to sellers. This arrangement benefits listing and selling brokers and agents as they can connect, share information, and split the commission check.
Affiliated brokers on MLS update the information regularly and create an electronic database with all the houses on sale.
On the other hand, AirDNA gathers its data from public records. The main issue with this approach is that the data is often prone to error. The best way to provide accuracy is to conduct your investment property analysis based on similar properties.
While looking for ways of making money in real estate, you choose to follow two rental strategies. The traditional rental strategy is to get a long-term tenant who leases your property for, say, six months or one year. The short-term rental strategy involves getting guests who stay at your property for a minimum of one night.
Both Mashvisor and AirDNA cater for the short-term rental strategy. However, only Mashvisor supports a long-term rental strategy. It gives Mashvisor an advantage since it’s better to analyze both possible rental strategies and decide which one is most suitable for you.
Remember, you may have your mind set on one rental strategy, only for the data and analytics to convince you otherwise.
Related: How To Start a Rental Arbitrage Business
The final aspect to consider when analyzing Mashvisor vs AirDNA is the financial side.
AirDNA provides a limited amount of its data for free. However, you’ll realize that the free data provided isn’t adequate to make an educated and data-based business decision. If you opt for the paid package, you’ll have to pay for each city separately. It can turn out to be more expensive than expected if you’re not 100% sure about which city you want to invest in.
Mashvisor excels when it comes to pricing. While it may not have free options, it becomes more affordable when you’re searching for and analyzing different properties across different markets in the country.
To learn how to take advantage of Mashvisor’s different real estate analysis tools, make sure to book a demo as soon as you can.
Bottom Line: What is AirDNA? Is It The Best Out There?
Now we’ve gone through a comprehensive comparison between Mashvisor and AirDNA and seen what is AirDNA; you’re in a better position to decide which platform suits your needs better. Among the AirDNA alternatives, we can see that Mashvisor is the best Airbnb data analytics platform.
If the idea of using Mashvisor for your investment property analysis appeals to you, you’ll be more than pleased to know that we also have a free trial. Why not sign up right away and get a 15% discount on your quarterly or annual subscription after your trial?