Rentalizer - Revenue Calculator

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 essential for understanding how a potential property could perform as a short-term rental.

You can access the Rentalizer from the feature icons in the top-right corner of 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 view. Enter any address or coordinates into the search bar to generate a projection.

Our calculator is a great tool to help you see the potential of any property as a short-term rental. 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.

The Rentalizer gives you an overview of the property which includes the address, the Market where it’s located and AirDNA’s Market Score. You can refine your property earning potential report by adjusting the number of bedrooms, bathrooms and guests.

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.

Revenue potential is a metric we use on our calculator to generate projected performance. When creating an estimate, our algorithm identifies comparable properties and uses their historical performance to start building estimated revenue, average daily rate (ADR), and occupancy figures. Most of these comparable properties will have had differing numbers of days available, so in order to analyze these properties equally, we need to look at them as if they all were available every day of the 12 months in the last year.

This is where revenue potential comes in. We apply the ADR and occupancy rate the property achieved during the days it was available to be booked, to 365 days, and we also factor in market seasonality, historical performance for that property, as well as the historical performance of the comparable properties.

In the example above, you can see that the listing was available 194 days of the possible 365, generating $42.6k in revenue. By applying these conditions to a full 365 days, we’re able to calculate a revenue potential of $75.5k.

When creating an estimate, we use the revenue potentials from the comparable properties to generate the figures for the next 12 months for the address that has been entered.

The Confidence Score 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 Confidence Score.

The Confidence Score will be higher when the revenue figures among the comparable listings are more consistent. The score can be categorized as Low, Medium, or High.

Depending on your preference, you can access the comps using either the Map or List view. The Map view highlights the locations of the comps in the market. Meanwhile, the List view presents the comps in a table format, showing their ADR and Revenue from the past twelve months.

You can use the financial 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.

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 past 12 months.

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 explore a longer timeframe, just click on "Last 12 Months." Both charts can be exported to a CSV file for your own analysis.

The Comparable Amenities feature 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, a hot tub may be a desirable addition.

With our Pro plan, you can save property performance reports to your dashboard and revisit them anytime. Each report is timestamped, preserving the performance metrics at the time of creation, and allowing you to track and compare performance over time. You can also save multiple reports for the same address and download each report as a professional-standard PDF file.