In simple terms, the ADR signifies the amount of money which a guest pays for renting the property for one night. This is one of the main metrics which experienced Airbnb hosts use to evaluate the profitability of their short-term rental properties as well as to forecast the performance of an income property for sale which they are considering investing in. What Is the Average Airbnb Daily Rate?īefore we take a look at the most profitable Airbnb locations in 2021, it’s important to understand the meaning of ADR. To help you find the perfect location for your vacation rental property, we have ranked the 50 US cities with the highest average Airbnb daily rates based on our nationwide real estate market analysis. In turn, when combined with the property price and the rental expenses, the Airbnb rental income is one of the major factors establishing the rate of return on a rental property, whether looking at the cash on cash return or the cap rate. Together with the Airbnb occupancy rate, the ADR – for short – determines the Airbnb income which hosts will be able to generate. One of the most important factors which real estate investors should consider when buying a short-term rental is the average Airbnb daily rate in the location of their property. This is why buying a vacation home to rent out on Airbnb, VRBO, HomeAway, or another similar platform is a smart investment decision this year. Mashvisor’s data confirms that Airbnb rentals bring a higher return on investment than traditional rentals in the majority of the US housing market 2021. Are you thinking of investing in a short-term rental property in 2021? Then you should consider the locations which offer the highest average Airbnb daily rate this year.ĭespite the initial negative impact of the Covid-19 pandemic on the short-term rental industry in the spring of last year, the Airbnb investing business started recovering within a few months to re-emerge as one of the most profitable real estate investment strategies in 2021.
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