Rentalizer gives you a revenue estimate for an address based on the historical performance of comparable properties close to the address entered, allowing you to see the true investment potential of a property.
Using the historical performance of short-term rentals that are similar to the address you have entered, the Rentalizer builds an estimated revenue, ADR, and occupancy rate for the next 12 months based on full-time availability.
This is a powerful tool to help you identify potential investment properties. Using the financial calculator, you can input a purchase price as well as operating and start-up costs. Once these figures have been entered, Rentalizer will generate a capitalization (cap) rate. Cap rates are a great way to see your return on investment against the purchase price of the property, giving you the ability to rule out or pursue an opportunity quickly.
Capitalization Rate = Net Operating Income / Property Asset Value x 100
Market seasonality is factored into a Rentalizer estimate, but it’s important to know when the high and low points are likely to occur over the next 12 months. You can see this in the revenue forecast graph. You can also find monthly revenue estimates with a range from lowest to highest estimates.
To gain insight into how a property has been affected by market change over the last 2 years, you can use the Rentalizer Estimate graph. It gives an estimate of what the property would have generated if input into Rentalizer at another time over the last 2 years. Take a look at the property below, for example. In May 2022, the annual revenue estimate is $69,900 based on the performance of the comparable properties over the past 12 months.
Whereas, if the same address had been input into Rentalizer in May of 2021, the estimated revenue would have been $53,700 based on how the comparable properties had performed in the 12 months prior to then. This metric is useful to help show how market change has affected the address you’re interested in, specifically over the last 2 years.
Using the historical data points in MarketMinder can help build a full picture of what you could expect from your potential short-term rental property, comparing the market averages for similar property types to your own against that of what Rentalizer produced.