AirDNA’s powerful Rentalizer tool estimates the Revenue, Average Daily Rate (ADR), and Occupancy Rate for any property in the world by utilizing historical performance data from similar nearby active listings. This feature is crucial for understanding how a potential property could perform as a short-term rental.
You can access the Rentalizer from the left side navigation panel on the platform, or search for any address in the platform search bar, where you can also search for markets and submarkets.
After clicking on the Rentalizer icon, you'll see the dashboard screen. Enter any address (or map coordinates) into the search bar to generate a property projection.
After you enter any address, our algorithm will search for comparable properties within a 10-mile (15km) radius. The properties are selected based on their proximity to the address geographically and their similarities in their bedroom, bathroom, and guest count configurations.
A weighted average of these properties' historical performance gives you an estimate for your selected address. We also factor in market conditions such as seasonality, rental demand, and revenue growth.
You can refine your revenue potential report by adjusting the number of bedrooms, bathrooms, and guest capacity using the drop-down menus if the default values don’t match the actual property.
The projected metrics are displayed on the right side of the screen. You’ll receive a Projected Revenue, Occupancy and Average Daily Rate (ADR) for the next twelve months. The Projected Revenue factors in the average daily rate and cleaning fee from the comparable listings used in the projection. However, it does not include the host fee or other fees and taxes.
The chart below displays the Comp Revenue Range and shows how many comparable listings fall into each annual revenue bucket. This helps highlight where comps cluster around similar revenue levels and makes it easier to identify outliers that you may want to remove from your Comp Set.
Comps - Map and List view
Depending on your preference, you can access the comps using either the Map or List view. The Map view highlights the property location and where the comps are located in the market. You can switch the metric on the properties from the drop-down, to show revenue, occupancy, ADR or bedroom count.
Meanwhile, the List view presents the comps in a table format, showing their ADR, Revenue and Occupancy from the past twelve months, plus the bedroom and bathroom counts, reviews, ratings, days available and more.
Customizing your Comps
Rentalizer offers two options for comparable listings: you can either use the listings chosen by our algorithm or, for a more precise projection, create your own custom set using the Comp Sets feature.
This is ideal if you know there are specific listings nearby you'd like to include, or if you want to review and fine-tune the comps to ensure they closely match your property's style and characteristics. You can easily add listings to your My Comps table or remove any that you feel aren’t a good match.
After you have entered an address, just click on Edit Comps.
This will take you to the Comp Sets screen to refine the comparable listings in the My Comps table.
Comp Set Strength
The Comp Set Strength is a metric that indicates the variability in revenue among all comparable listings used to generate the projection. For instance, if one comparable listing projects a revenue of $50,000 and another projects $200,000, the large difference in revenue would result in high variance, leading to a low score.
The Comp Set Strength will be higher when the revenue figures among the comparable listings are more consistent. The score can be categorized as Low, Medium, or High.
A high score indicates a more precise projection and high confidence, while a lower score signals that you may need to review and fine-tune your comp set.
After you have made the changes and you’re happy with the Comp Set, click on Update Report to return to the Rentalizer screen.
When you return to the Rentalizer report, your projected metrics will update to reflect any changes you've made.
Investment Return Calculator
You can use the calculator tool to add any operating costs or expenses that may apply to your property investment. The calculator informs you of your total operating expenses and gives a net operating income after deducting the expenses from the gross projection.
Click on Customize Estimate to add your expenses and start-up costs.
The figures in the calculator are set to default values and will automatically adjust as you input your expenses. Here, you can include any operating or start-up costs, such as management fees, taxes, cleaning fees, insurance, and more. Additionally, you can enter a purchase price to calculate the cap rate if you’re making a cash investment. The cap rate represents the expected return in the first year for the rental property based on its income potential.
Projected Revenue Charts
The charts provide a more granular picture of the projected revenue for the next twelve months, broken down monthly. Each month's projected revenue is shown alongside a revenue range, offering more insight into the forecast and giving you a range of the potential earnings of the property throughout the year, month by month.
A historical chart can also be found here, showing how the revenue projection has changed over the last two years.
This chart displays what the revenue would have been if the same address search had been performed at any point during that period. It’s a valuable tool for understanding how the potential revenue for the property has trended over time.
To see the last two years' performance, click on the "Last 12 Months" drop-down to change the timeframe. Both charts can be exported to a CSV file for your own analysis.
Comparable Amenities
The Comparable Amenities table provides insight into the amenities offered by similar listings in your area. This information is important, as it helps you determine which amenities are must-haves in your market and which can give you a competitive advantage. For instance, in popular summer destinations, air conditioning is essential, while in winter getaways, having a hot tub can give your property a competitive advantage over those that don’t.
If only some of the comps include these comparable amenities, they are highlighted so you can easily review them within the Comp Set. When editing the Comp Set, you can also apply filters to find comparable listings with amenities that match those you currently have—or plan to add—to your property.
