It often indicates a user profile.įollowing the end of COVID-19 pandemic lockdowns, the short-term rental industry experienced a period of record strength. 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.Account icon An icon in the shape of a person's head and shoulders.
This metric is useful to help show how market change has affected the address you’re interested in, specifically over the last 2 years. 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. In May 2022, the annual revenue estimate is $69,900 based on the performance of the comparable properties over the past 12 months. Take a look at the property below, for example. It gives an estimate of what the property would have generated if input into Rentalizer at another time over the last 2 years. 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. You can also find monthly revenue estimates with a range from lowest to highest estimates. You can see this in the revenue forecast graph. 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. 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.Ĭapitalization Rate = Net Operating Income / Property Asset Value x 100 What is a good cap rate? Seasonality Once these figures have been entered, Rentalizer will generate a capitalization (cap) rate.
Using the financial calculator, you can input a purchase price and operating and start-up costs. 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. 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.
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