The first three factors are tough to estimate. The last factor is the only one in your control and the best way to learn how to do well is to read this blog of course 🙂, and sign up for the newsletter to stay updated.

Prices of other listings and alternatives such as hotels.

how many people are looking to stay at Airbnbs The potential profit you can make from your Airbnb in a certain area depends on the following factors: The profit however is a very different story. Before you sign the contract, you'll know how much the rent or mortgage payments will be. There are two factors to look at here: the carrying cost of the house (monthly mortgage payments or the monthly rent) and the profit. The first can be easily estimated. The most common question I get from these people is: How do I know where the best opportunities are? In which areas is renting on Airbnb most profitable? How to find the best area for Airbnb You could try to figure this out on your own or with expert advice, but you can also use Airbnb tools like AirDna to give you more stats.

After many hosts find success with their first rental they naturally think about investing in new properties, either buying or renting.

AirDnA is a tool for finding profitable Airbnb locations.

Airdna report