Inside Airbnb: Dublin’s Most Profitable Rentals
Over 10 Airbnb hosts in Dublin earn over $ 100,000 per year – and owners’ combined income can be significantly higher if they rent multiple properties through the service, such as Airbnb more and more in the field of professional real estate.
According to AirDNA, a US-based company that analyzes the global Airbnb market, Dublin’s biggest earner is a six-bed apartment in the southern city center that generates € 163,495 per year. Its average daily rate is 651 €, which implies an occupancy at the average rate of 251 nights per year. Another big income is a seven bedroom property in Drumcondra, in the northern part, which brings in over € 150,000 per year, with an average daily rate of € 653. A T3 in the city center brings in € 135,583 per year and a T3 in Temple Bar € 131,164.
The numbers, which show revenue rather than profit, are based on the number of bookings at the daily rate and show how much money can be made in the short-term market rather than the long-term rental market – a property rented for a substantial amount of € 5,000 per month will still generate only € 60,000 per year. Last week, AirDNA revealed that a London homeowner made nearly £ 12million in a year from Airbnb, renting 881 properties – the biggest earnings of any homeowner in the world in the past 12 months.
Host raises over € 280,000 per year at five properties he rents in Dublin Docklands
The figures, which should be treated with a bit of caution as they are unofficial, reveal much higher income than disclosed by Airbnb, which said earlier this year that a typical host’s annual income in Dublin was of € 4,900.
Air, a company that manages property on behalf of hosts, claims that “Airbnb hosts can earn 60-100% more than renting their home as residential,” and a real estate agency survey Nested earlier this year I found out that it would take over 24 years to recover the value of a property in Dublin by renting in the long term market.
With Airbnb, the value could be recouped in just seven years.
Data provided to Irish weather also reveals how the Airbnb model is becoming more professional, as owners move in to maximize earnings.
Listen to internal affairs
“Airbnb is no longer a community for individuals who self-rent their space or properties,” said Scott Shatford, CEO of AirDNA.
Globally, AirDNA estimates, management companies now account for 35% of all listings on Airbnb, with the ratio moving quickly to them and away from individual owners. Although AirDNA said it could not give such a breakdown for Dublin, given that many management companies create a profile under a staff member’s name instead of the company name, this indicates that approximately 780, or a quarter, of the hosts on the site operate multiple Properties.
Among “business” hosts, AirDNA said 60% operated multiple properties. Airbnb previously declined to say how many of its Dublin hosts offer multiple properties.
A host collects more than € 280,000 a year in five properties he rents in Dublin docks, and potentially others, according to AirDNA figures. Another operates two of the most lucrative properties in downtown Dublin, according to AirDNA, making more than € 200,000 from the two properties alone.
Other hosts appear to be individuals who rent their own homes but then pop up on several properties on the site. ‘Host’ James, for example, of what Air DNA says is the most lucrative property, with a turnover of over € 160,000 per year, also hosts a three-bed property in the docks, with annual income of € 88,758.
The picture is also confused by the number of hospitality management companies, such as Airsorted and Host Butlers, who do not own the properties but allow owners to contract out accommodation functions, such as check-in and cleaning. This opened up the job market to future hosts.
Bmyguest, for example, an Irish-owned property management company Airbnb, searches for people who live in the city center and work part-time or study, to act effectively as a host on the website, monitor and filter the guests, accept reservations, and answer any questions the guests may have. The job requires people to be available between 9 a.m. and midnight seven days a week.
The average daily rate for an Airbnb rental in Dublin was $ 181.31, compared to $ 128.20 for a hotel room.
Another professional operator is My holidays, who, according to his Facebook page, specializes in ‘upscale vacation rentals’ in South Dublin City and owns a number of Airbnb ads, including a studio in Rathgar, while ContinueStay Here offers vacation apartments in the city center and Salthill areas of Galway.
Airbnb says, “The vast majority of hosts on Airbnb are ordinary people who share their home – usually their biggest expense – to increase their income and support their families. The Airbnb model is unique and empowers ordinary people, energizes local communities, and is subject to local tax. It also makes Airbnb fundamentally different from companies that withdraw large sums of money from the places they do business. “
According to AirDNA, Dublin now has around 5,500 Airbnb listings, up from 2,511 listed properties in September 2015. Fifty-five percent of Dublin’s listings today are for entire properties, 43% for private rooms and 2% for rooms . shared rooms. Occupancy rates are high: in September 2015, of the 5,521 available dwellings, 4,988 were reserved. AirDNA gives an occupancy rate of 71% for an entire establishment listed on Airbnb in Dublin, against a comparable hotel rate of 75%.
AirDNA has useful insight into how Airbnb stacks up against traditional hotels. The Revpar – or revenue per available room – for an entire Airbnb rental was $ 129.23 in October 2017, compared to $ 96.10 for a hotel room.
The average daily rate for an Airbnb rental in Dublin was $ 181.31, compared to $ 128.20 for a hotel room. September was the month with the highest Revpar on Airbnb in Dublin; December and January were the lowest months.