AirDNA and RealPage show continued opportunity in rental arbitrage after upheaval in urban travel landscape

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Aug 10, 2021, 10:05 ET

DENVER, Aug. 10, 2021 /PRNewswire/ -- AirDNA, the leading provider of short-term rental data and analytics, has partnered with RealPage to provide insights and interactive tools to help renters and owners capitalize on rental arbitrage.

Long-term rental rates have grown more than 10% in a third of U.S. metro areas in the last year, while short-term rental (STR) demand, after dropping 50% in 2020, has rebounded phenomenally, leading to a new record high of 70.2% in occupancy in June 2021.

Annual % change in Apartment Rent and STR Revenue per Unit

The inaugural joint report between AirDNA and RealPage highlights the new landscape of rental arbitrage including which cities have the highest revenue potential and how the pandemic caused major shifts in rates, demand, and traveler tastes.

"The rental arbitrage model has really taken on a whole new form in 2021," said Scott Shatford, CEO of AirDNA. "What was once seen as 'house hacking' has now become a fully streamlined, transparent way for renters and owners to both benefit from flexible living — especially with tools like Migo."

For owners and renters of multifamily apartments using Migo, RealPage's new flexible living platform that enables and streamlines multifamily home sharing on Airbnb, these trends are welcomed news. AirDNA and Migo present a fresh list of the best cities for rental arbitrage, showing some familiar favorites like Savannah, Charleston, New Orleans, Nashville, and Jacksonville. San Diego is also new to the top of the list, with 4% annual growth in apartment rents.

"Covid has completely upended how the multifamily industry looks at rental arbitrage," said Richard Chandler, Director of Data and Product at Migo. "The largely defunct master lease model, where property owner's risk was minimal, has been replaced with a 'revenue split' model where both parties take a simple cut of any income generated." Chandler added, "Any owners looking to benefit from the substantial returns from home sharing must now also share in the risk. Understanding and maximizing the rental arbitrage is now critically important to property owners in our industry – hence Migo's strong ties with AirDNA."

The report also contains interactive tools to help you find the best niche for rental arbitrage comparing effective rent growth, STR revenue growth and more by neighborhood and bedroom count. In general, the larger the unit the greater the arbitrage opportunity — the premiums for short-term rental revenues jump from 46% for a studio apartment to 140% for a 3+ bedroom.

Click to read the full Report

About AirDNA

AirDNA turns short-term rental data into strategic, actionable analytics. The company tracks the performance of 10 million vacation rentals in 120,000 global markets each day to provide real-time market insights.

Airbnb hosts, vacation rental managers, travel organizations, and real estate investors all rely on AirDNA's vacation rental insights to analyze trends, price rentals, identify new investment opportunities, and benchmark performance.

Contact: [email protected]
+1 720 372 2318

About RealPage

RealPage provides a technology platform that enables real estate owners and managers to change how people experience and use rental space. Clients use the platform to gain transparency in asset performance, leverage data insights and monetize space to create incremental yields. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 19 million units worldwide from offices in North America, Europe and Asia. For more information about RealPage, please visit RealPage.com

Contact: [email protected]

SOURCE AirDNA