Become a AirBnB host in Seattle
There has been rapid growth and evolution in sharing businesses, such as AirBnB, Uber/Lyft, GrubHub, Instacart, etc. If you have one or part of your house that is idled, it is not a bad idea to share it with someone in need and earn some revenue from it. However, before doing this, you need to make sure to understand the market and make wise decisions based on your situation.
In this post, I am going to answer some questions which potential AirBnB hosts are interested to know. The answers are based on the Seattle AirBnB’s 2016 home data. I will be answering the following questions in this article:
- what is the most popular home type?
- where is the most popular location?
- when to rent to maximize the revenue?
- when is the off-peak season for maintenance?
- how to achieve a good rating?
Part I: Popular home type?
As a potential host, you may want to know the most popular home type to rent in Seattle. The following figure shows the number of listings based on the property type. It can be seen that the most popular property type is house, followed by apartment. Less popular are the townhouse and condo types.
The room type also matters. As shown in the following figure, most listings are for the entire home/apartment, less listings are for a private room, and the least is the shared room.
Therefore, it is noticeable that the most popular home types on AirBnB are the entire or a private room in a house/apartment. Other home types are less popular.
Part II: Popular location?
The location of the home is of vital importance in an AirBnB business. Popular neighborhoods may attract more renters.
From the above figure, it can be seen that neighborhoods that have more than 150 AirBnB homes are: Broadway, Belltown, Wallingford, and Fremont. These are the neighborhoods that are probably most attractive to renters while the renting business can be the most competitive.
Part III: when to rent/close for maintenance?
To run a AirBnB home in Seattle, it is necessary to know the best time to rent and the time to close for maintenance in order to maximize the revenue.
From the above figure, it can be seen that the best months to rent is during Jun — Aug, as the rent price is the highest. During the rest of the year, Jan — Mar would be the best quarter to close for maintenance.
If we look at the mean price based on the day of the week, it can be seen that the price on Fridays and Saturdays are the highest, while the difference is not large (~$10/day).
Part IV: achieve good rating?
A good rating directly reflects the high degree of satisfaction about the service, therefore implies an increased potential to be recommended to more renters by the system. However, increasing the rating is in fact a complicated question and the answer is not straightforward. Here is what I get:
It can be seen from the above that the review rating slightly negatively correlates to the host listings count and positively correlates to the host response rate. The review does not strongly correlate to the price. Therefore, respond quickly may increase the review rating.
From the above, it can be seen that review rate slightly positively correlates to the square feet of the room. The number of baths, bedrooms, number of beds, and the accommodates do not seem to affect the rate much.
It can be seem that the short term and long term availability of the listing does not affect the rate significantly.
Lastly, the above shows that the review rating is not largely affected by the cancellation policy or the smart location.
In this article, we look into the data of AirBnB home in Seattle in order to provide information for potential hosts.
- The data shows that the most popular home types on AirBnB in Seattle are the entire room in a house/apartment.
- The top four popular neighborhoods in Seattle on AirBnB are Broadway, Belltown, Wallingford, and Fremont.
- The best months to rent are Jun — Aug. The best months to close for maintenance are Jan — Mar. The mean price during a week does not fluctuate much (~$10 difference).
- There is no indication of a factor that would significantly influence the review rate. However, respond quickly and spacious room may have some positive affect on the review rating.
The findings here are observational, not the result of a formal study. Now, Are you ready to become a Host?
To see more about this analysis, please checkout the link to my Github here.