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At BrickStarter we have been following the business model of properties on Airbnb for some time, and after a thorough study we want to share the conclusions we have reached so that you can analyze the data.

We have taken the province of Valencia as an example (naturally, since it is the area we work in) and we are presenting the data we have obtained so that you can judge for yourselves. You can see it below in the interactive table we have prepared for you, where you can verify all the data, featuring the six properties in operation that bring in the most money annually through Airbnb. If you select a property on the map, a dropdown will appear with the link to visit the property's page.

As you can see, all of them fall within a range from €60,000 to €90,000 per year. These are published gross revenues, not a return for the investor. What can we learn from this study?

A reasonably sharp eye can spot the factors that all of them have in common: the 4 factors they share.

1. The spaces.

 The average number of bedrooms in these six homes is 6, and the average number of bathrooms is 4.6.

This means these are properties capable of hosting many people. But at the same time, they are capable of providing a bathroom for each person or almost doing so. In this sense, it would be a model similar to that of a hotel. However, the target audience is rather focused on groups of people.

Social gatherings, family get-togethers, etc.

People who want to be together for the time they share, for which a hotel is not the most viable option, since it does not offer common areas where they can enjoy leisure and each other's company in a way similar to what one can do at one's own home, with the comfort of not being in one's own home.

2. Flexibility.

The minimum stay in four of them is one day, and in the other two, two days. Unlike classic vacation rentals that work by the week, by two-week periods, or by the month, an Airbnb has to be flexible in order to succeed. Weekend visits can be just as lucrative as working with two-week stays. Especially considering that one is an already saturated sector and the other is on the rise. And while in summer people can afford longer vacations, during the rest of the year what predominates are weekend getaways or long weekends built around a holiday.

3. Quality and price.

The average daily rates of these houses, with the exception of one of them, are between €200 and €400. Which, for whoever receives that amount, sounds appealing, but let's try looking at it the other way around. There are 16 of us who want to rent a house for a weekend. Let's say they ask us for €350 per day. €700 for the whole weekend. A simple division tells us that for €43.75 each we would have accommodation for all 16, in which to feel at home for two days.

But even more than the price, quality matters. Taking a look at the properties we have been talking about, we realize that they are luxury homes. While that is not within everyone's reach for a lifetime, it is something we can afford for a couple of days.

That is why the business model is on the rise: according to this data, it appeals to customers and generates gross revenue. 

4. The location

Four of the six properties are located in the center of Valencia. This is no coincidence. It is important to have everything close at hand, especially when you are visiting a place you do not know. Being able to be sure that all your needs are covered. One might think that the ideal location would be close to the beach, but the data does not support that. Airbnb is not a seasonal model but an annual one. And the center of a city tends to be its least seasonal part.

At BrickStarter we believe that this business model may be an investment opportunity, with the risks inherent in any real estate investment. You can view the property page for Mossen Sorell, with its full information and its risks. This property was acquired based on the analysis of our Big Data, without this guaranteeing any result.

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.