Improve Your Airbnb Rental Income:
7 Ways to Boost Your Return on Investment Through Data

When it comes to short-term rentals (STR), it can feel like there are more questions than answers. Whether you’re hosting your first STR, adding to your portfolio, or simply wanting to improve your existing Airbnb rental income, there’s just so much to know—from the amenities, occupancy, and average daily rate (ADR) for your own properties to what your competitors are doing in each of these areas. 

Without using data to optimize your rentals, you can get overwhelmed by all the decisions you have to make. Or worse, you can leave money on the table because you just don’t know what your STR may need to really bring in top-dollar revenue. 

Here are seven ways hosts can use data to optimize both their listings and their Airbnb rental income.

1. To be (pet-friendly), or not to be: Make your listing more attractive

Making smart improvements helps you get the most out of your investment. Amenities are a widespread use case. Knowing what has the biggest return on investment (ROI) helps you decide where to invest in upgrades. The key here is to find out what features add value without being too costly or difficult to implement.

For example, if “properties with a hot tub in your neighborhood make 25% more than those without,” adding a hot tub may be a safe bet to make your listing more attractive. The same goes for being pet-friendly, enabling instant booking, offering a washer/dryer, and more. 

With access to historical vacation rental data on homes in your area, you can see how amenities directly impact booking rates in your market. Use this information to make strategic decisions for your properties.

2. Stay Engaged: Keep an eye on your performance metrics

Stay on top of your property’s performance—and the performance of your competitors. Regularly checking in is the best way to stay on top of how your properties are doing, whether you have your competitors or a broader market trend to thank for changes in performance.

For instance, if your property saw a dip in occupancy last month, that could indicate a problem with your listing, your pricing, or another rental feature. But it could also be part of a broader market trend. Are competitors booked up? Or did your whole area slow down? 

If you’re monitoring performance metrics, you’ll be able to spot interesting insights, like competing listings that have both better occupancy and higher nightly rates. You can also compare your performance with that of the broader market to see if there are trends you should act on, like the ADR of booked listings compared to the ADRs of those that are still available. Knowing your performance metrics and understanding them against your competitors and market makes it easier to act confidently and keep your revenue up.

3. Dream big, but not TOO big: Set realistic goals from the get-go

It can be tempting to set your STR sights on high revenue goals. But if you set unrealistic expectations, you’ll be disappointed when you don’t hit those targets. And if you do hit them? Maybe it’s time to boost those goals—but only if the market will support it. 

Use an Airbnb calculator and vacation rental data to know precisely how much revenue a property is predicted to make so you can set realistic expectations from the outset. With the right tools, you can make accurate projections on how much to charge per night, your minimum night stay policy, if working with a professional property management company is worth it, and more. 

STRs are a big investment, but they can also offer up big returns. How you feel about your ROI has everything to do with the goals you set. If you set data-backed goals that you can actually hit, you’re setting yourself up to not only achieve your ROI milestones but also feel successful when you do—rather than waiting for revenue that may be out of reach.

4. Use your home AND make money: Choose the right days to block

One of the perks of owning a vacation home is actually getting to vacation there. While using your home as a short-term rental is the main reason you bought it, you also want to enjoy it yourself. The right data can ensure that those two goals aren’t mutually exclusive. 

Use data and insights to discover the best days to block on the calendar for your own getaways without hurting your overall revenue. For example, would it be better to enjoy your holiday home during the work week or on the weekends?