Airbnb Success Hack for Picking Profitable Properties
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In this video, we are going to look at a tip that you can use to help you pick the most profitable properties on Airbnb!
Anybody that is interested in getting started with an Airbnb business, whether that means buying properties, doing rental arbitrage, or Airbnb management, is going to find this success hack very helpful with their business. Not only will this tip help you predict how much income a property is going to generate every month of the year, but it’s also going to help you pinpoint the most profitable listings so you can know exactly what where and what type of property will be the most successful.
A lot of you might be familiar with AirDNA, and there are others who might not know what it is. If you’re looking at getting started with Airbnb in any way, AirDNA is a very helpful tool that is incredibly valuable. It’s a data mining site where they track the performance of Airbnb properties on various sites like booking.com and VRBO, and Homeaway. What’s great is they also track what rate properties get booked for, what the occupancy rate is, and the seasonal fluctuations throughout the year. Obviously this is going to give you a wealth of very valuable information and you can divide the data up by area and even by postal code. That means you can know which neighborhood performs best on Airbnb, what size of property, what type of amenities perform better, so you can know which properties are going to be winners before you start working with them.
If you use this tool to find those standout listings and pick your properties properly, you’re going to be able to be generating a lot of income out of a minimum amount of properties and work. This is helpful because not only does it give the property owner more comfort and predictability, knowing how much they can expect to earn over the next 12 months, including the seasonal highs and lows. Now, with AirDNA, the data is pretty raw. What makes it more helpful is having some sort of tool or formula that can break down the data into usable information to forecast projections. Now, I’ve built a tool that is linked in the description below so you can download it. You can set it up for your specific location to project a property’s profitability throughout the year, and compare different properties and areas side by side to make sure you’re only taking on the most successful listings.
What's up guys, it's James here and in today's video, I'm going to talk to you guys about a really amazing success hack for Airbnb so that you can pick the most profitable properties to manage.
And this is gonna be a really valuable video for anyone who wants to in any way dive into and get started in the Airbnb business, whether that means buying properties, whether that means renting properties and flipping them doing rental arbitrage, or whether that talks about whether that involves what we talked about the most on this channel, which is Airbnb management, managing for a percentage of the overall revenue without assuming any risk by buying or renting the property.
No matter what model you choose. This tip that I'm going to give you in this in today's video is going to help you out tremendously because it's going to allow you to not only predict the future, you know, predict how much income a property is going to generate every single month throughout the year. But it's also going to allow you to pinpoint the most profitable listings and actually just cherry pick them figure out which listings perform the best in any given area and go out and find them and bring those properties or similar properties to those ones under management or buy them or rent them whatever model you choose.
So before I dive into all that, if you are interested in getting more updates about videos like this, every time we publish them twice every single week, please just take a quick second, just snap out of it for a quick second and just click that button down below to subscribe to the channel. And we post new videos twice every single week of all things Airbnb management, just click that subscribe button if you're interested in staying up to date with this channel. Also, if you do like this video, please don't take please don't hesitate to just give it a quick thumbs up hit that like button, it really helps me out tremendously with YouTube's algorithm. So you could just take half a second and click that like button. I would appreciate that tremendously.
Now without further ado, let's jump into it and talk about this tip this hack this secret formula for success on Airbnb. What this means what this requires is a tool called err DNA. Now I know a lot of you guys are probably already familiar with air, air DNA. But it's not just about having the tool. It's about knowing how to use it as well. And I'm going to leave you at the end of this video with a tool so that you can do exactly that. So for anyone who isn't familiar with air DNA yet, if you don't know what air DNA is, it's a really incredible tool that's incredibly valuable for you if you're looking to get into Airbnb in any way. Air DNA is basically a data mining site.
Essentially what they do is they track the performance of Airbnb properties on booking.com on vrb, o homeaway, all kinds of different properties on all kinds of different platforms in all kinds of different areas all around the world. They literally have millions upon millions upon millions of data points. And the cool thing is they don't just track what properties are listed for which realistically you can set your property and list it for whatever price you one, they track what properties actually get booked for what is the actual rate the actual amount of money that each property owner is receiving on their properties.
They keep track of that across all kinds of different properties they keep track of when they do get booked when they sit empty, what the occupancy rates are, what the seasonal fluctuations are throughout the year, what the rates spiked to when events come to town, all these different data points. Now as you can imagine, this gives you a wealth of really, really high value information and data because it allows you to see which properties you can divide it up by area you can look by postal code even with by neighborhood.
And you can figure out which areas for example in your city perform the best on Airbnb, you can pinpoint and narrow it down by the type of property and see which size of property books the most and gets the best performance on Airbnb throughout the year. You can figure out all kinds of things you can look at what amenities are the most desirable, whether listings with fireplaces, or pools perform substantially better with those without those amenities. All this data can help you to figure out exactly which properties are going to be winners before you get into them.
Now, this is incredibly valuable for anyone that's looking to get into Airbnb because quite frankly, if you can pick properties properly, that's a tongue twister right there. If you can pick the right properties at the outset, you're going to have a way easier and way more profitable time running your Airbnb business than if you go and you pick up whatever properties you want. And then later, what you'll find out is that probably 20% of your properties are generating 80% of your income.
Because if you can find those standout listings, then they're going to be real cash cows for you and they're going to produce a lot of income every single month. Now, the unfortunate thing about air DNA is that the data is pretty raw. When you get it there are a couple different ways to break it down but it's not as exactly as usable as you might like it to be what you benefit from is Having some sort of a tool, a formula to be able to break down what level of income properties you're going to generate and actually give forward forecast projections.
So you can look at, okay, based on that data, how well are these properties going to perform throughout different months of the year different seasonal periods? What's the seasonal fluctuation and look like when is high season when is low season, and especially if you're doing Airbnb management, you want to be able to actually provide those projections directly to the property owner, so that you can show them a forecast of exactly how much they're going to be earning.
Now, this helps in two different ways. The first way this is exceptionally helpful is that well, it just allows the property owner to have a little bit more comfort, knowing Okay, this is how much I can expect to earn over the next 12 months here.
Now, the other way that's really helpful is it allows it to be really predictable for them. They know what to expect in different points throughout the year. One of those challenging things for the property owner is that they oftentimes don't really know what to expect going into high season or going into low season, and they don't know that they're going into low season, and they don't know what to expect. And they're likely going to be very disappointed when those low season number comes in. Because they won't realize that you're going to be earning so much in the high season, it will more than make up for that.
So just being able to actually understand that is going to mean that number one, your client is a lot more confident and a lot less stressed out. And number two, you're not going to have to deal with as much of that stress from your client as if you just left them to their own devices. So I've actually built such a tool, I've actually built a tool that I'm gonna leave for you and a link in the description down below that you can download. And that you can check out air DNA from there inside the tool actually link to air DNA and link to some instructions so that you can actually get it set up for your city specifically.
So this isn't going to be this isn't just a universal tool. The really cool thing is that you set this up for whatever area you're looking to operate your airbnbs in, and then you can tailor it to your exact city. So really, really amazing tool, it allows you to see the different seasonal fluctuations that are going to happen throughout the year, it allows you to actually project for the property owner how much money they're going to bring in over 12 months. And more importantly, it allows you to project for yourself how much you can earn on a given property, depending on the model that you choose to operate it with.
So the really cool thing there is that you can compare different properties side by side and see which ones are actually going to net you the most money in management fees every single month out of the year. So again, it just makes your income really, really predictable. And it makes it so that you can very easily optimize your income. So you're only managing the cream of the crop the best properties out there. So this is my hack one of my big secret weapons for making sure that my Airbnb business is always as profitable as possible, and that I'm easily able to entice clients and give them the confidence they need to actually choose to work with me and how we manage their property.
So I hope this is really helpful to you. If you appreciate those tools, then please just give me a little bit back. All I ask for is that you just hit that like button and hit that subscribe button. If you do that. I appreciate it tremendously. I look forward to having you chat check in on future videos. Until next time, happy hosting and I wish you all the best success