Optimize Your Airbnb Occupancy: Learn About Short Term Rental Occupancy Rates

The Airbnb occupancy rate for short term rentals is an important metric that shows real estate investors the desirability of an Airbnb property.

It can be frustrating when you list your Airbnb for short term rentals and no one shows up. It is almost as if you flushed money down the toilet. As a real estate investor, it is your job to make sure the property’s occupancy rate remains high.

Table of Contents

  • What Is Airbnb Occupancy Rate & Why Is It Important for Short Term Rentals?
  • How to Maximize the Airbnb Occupancy Rate of Your Short Term Rental
  • How to Know How Your Airbnb’s Occupancy Rate Compares to Other Short Term Rentals
  • What Is a Good Occupancy Rate for Short Term Rentals?
  • You want to make sure that your Airbnb rental is not sitting empty. Therefore, there are certain steps you should take to move your Airbnb rental from the red to the black. Also, you want to ensure that your already profitable Airbnb rental continues to make you money by improving its occupancy rate.

    In this article, you will discover how to optimize the Airbnb occupancy rate for short term rentals. Also, you will discover how Mashvisor can help using its helpful tools for real estate investors.

    What Is Airbnb Occupancy Rate & Why Is It Important for Short Term Rentals?

    Airbnb occupancy rate is the percentage of available listings that are booked for a specific time. It provides valuable insight into the demand for short term rentals. The occupancy rate is calculated by dividing the number of occupied listings by the total number of available listings.

    A high occupancy rate is a positive indication of a thriving short term rental market and successful Airbnb listings. When the occupancy rate is high, it means that Airbnb’s listings are in high demand and generating a significant amount of revenue. On the other hand, a low occupancy rate means a decline in the demand for Airbnb.

    In either case, the occupancy rate provides valuable information for real estate investors to better understand the short term rental market and make informed decisions about the future of their business.

    The occupancy rate for Airbnb can vary due to several factors, such as location, time of year, local events, and attractions. But generally speaking, peak travel periods and popular locations tend to achieve occupancy rates.

    Why Is the Airbnb Occupancy Rate Important for Short Term Rentals?

    The Airbnb occupancy rate for short term rentals is important because it directly affects the rental income that a property can generate.

    A high occupancy rate means the property can generate more income from the rental. On the other hand, a low occupancy rate can indicate that the property is not generating as much revenue as it could.

    In addition to affecting rental income, the occupancy rate can provide insights into the market demand for short term rentals in a given area. Suppose a property is seeing a low occupancy rate compared to others in the same area. In that case, it may indicate that it is not as competitively priced or is not being effectively marketed to potential guests.

    By knowing your occupancy rate, you can make informed decisions about how to market and manage your property. You can do this by adjusting prices, improving the property’s amenities, or running promotions. It can help to increase the occupancy rate of your property and boost revenue.

    Related: How to Invest in Real Estate for Beginners in 2023

    How to Maximize the Airbnb Occupancy Rate of Your Short Term Rental

    To maximize the Airbnb occupancy rate for short term rentals, there are two major things you should take into account. The first is when the Airbnb is new, and the second is when the Airbnb is a few months old. 

    When the Airbnb Is New

    Here are a few things you can do to optimize the occupancy rate for a new Airbnb:


    To optimize the location of your new Airbnb listing, ensure that it is close to shopping centers, grocery stores, restaurants, and other good amenities. Also, ensure that it is easy to get public transportation.

    Research the area to determine what guests value most, and place your listing in an easily accessible, convenient location for them. 

    Highlight nearby attractions and amenities in your listing description and provide guests with a guide to the local area, like a map or a list of recommended places to visit. 

    Listing Optimization

    To optimize your Airbnb listing, start by showcasing your property with high-quality photos that accurately show the rooms, common areas, and any special features. 

    Write an attention-grabbing title that accurately describes your property and include a detailed and compelling description. 

    Don’t forget to price your listing competitively. Also, make your property comfortable and welcoming by making sure the bed is comfortable, the linens are fresh, and it is clean. 

    Respond quickly to inquiries and requests to show that you are reliable. Also, encourage guests to leave positive reviews. 

    Guest Experience

    Providing a positive experience for your guests should be the primary focus when optimizing your Airbnb listing. Clean and comfortable accommodations are key to making sure that guests experience a memorable stay. 

    It can be achieved by ensuring that all furnishings and appliances are in good working order and that the space is well-lit and well-ventilated. Also, you can provide extra touches that make the room feel more like a home, like fresh flowers or a welcome basket.

    To further enhance the guest experience, add extra amenities like toiletries and basic kitchen supplies. Providing such items can save guests the hassle of needing to buy or bring their own, which can make their stay more convenient and enjoyable. 

    Pricing Strategy

    Perform a competitive market analysis in order to set prices for your property based on the rates of similar listings in the area. To set competitive prices for your new Airbnb rental, research comparable listings in the neighborhood to get an idea of the going rate.

    Use the number obtained from your comparative analysis to set a competitive price and adjust it based on factors such as the time of year, special events, and local demand. Also, try offering discounts for longer stays, off-peak seasons, or last-minute bookings. 

    Regularly review your pricing and adjust it as needed to remain competitive.

    Related: Rental Comps: What Are They and Where Can I Find Them?

    Marketing and Promotion

    Use social media and other marketing channels to promote your Airbnb properties for sale in order to reach a wider audience. 

    Network with other Airbnb hosts in your area to cross-promote each other’s listings. 

    Also, partner with local businesses to offer joint promotions or packages to guests. 

    When the Airbnb Is a Few Months Old

    If your old Airbnb rental has an occupancy rate of below 90% and you’re already getting a few bookings, here are some tips to help improve that number:

    Review Management

    Analyze the feedback you receive from guests and respond to any negative reviews constructively. Use the feedback to identify areas for improvement and make changes to improve the guest experience.

    Some real estate investors and property managers sometimes ignore the complaints and feedback of their tenants. Or, they pretend that they didn’t get the feedback and allow the tenant to wait weeks before responding. 

    It is a poor management style. If you want to increase your occupancy rate, listen to the tenants. Remember, they can leave a negative review of your Airbnb property which will drive potential renters away, thereby reducing your occupancy rate.

    Marketing and Promotion

    New or old, always re-evaluate your marketing strategy to reach more people who are likely to rent your property.

    Re-evaluate your marketing and promotion strategy to make sure it’s reaching the right audience. Consider using new platforms and channels, such as social media and paid advertising, to reach a wider audience.

    Guest Experience

    To improve the guest experience of your old Airbnb and increase its occupancy rate, focus on providing clean, comfortable, and well-maintained accommodations. 

    Offer extra amenities to improve their stay. Respond fast to guest inquiries and requests, and handle any issues efficiently and professionally. 

    Also, you can personalize their experience by leaving a welcome note, offering local recommendations, or providing a basket of essentials. 

    How to Know How Your Airbnb’s Occupancy Rate Compares to Other Short Term Rentals

    Comparing your Airbnb’s occupancy rate to other short term rentals is valuable in assessing your property’s performance and identifying areas for improvement. Fortunately, Mashvisor can help you with this. 

    Step 1: Gather Data on Your Property’s Occupancy Rate

    To begin, you’ll want to gather data on your property’s current occupancy rate. It will give you a baseline to compare your property against other short term rentals. 

    If you’re using professional hosting tools on Airbnb.com, you can find your property’s current occupancy rates in the “Performance” tab, under “Occupancy and rates.”

    This will show you the occupancy rate of the property you are looking at, alongside other important information and characteristics.

    Related: How to Calculate the Occupancy Rate for Rental Properties

    Step 2: Research Other Short Term Rentals in Your Area

    Once you’ve obtained data on your property’s occupancy rate, the next step is to research other short term rentals in your area. Start by searching for other Airbnb listings in the same neighborhood as your property to get an idea of what other hosts are offering. Take note of their prices, amenities, and overall guest experience.

    Here is where Mashvisor comes to the rescue. 

    With its rental comps tool, you can find rental properties for sale similar to your property. Then, use the information you gathered for the next step.

    Mashvisor’s Rental Comps tool gives you essential data of short term listings in your chosen area that are similar to your property.

    Step 3: Compare Your Property’s Occupancy Rate to Others

    With data on your property’s occupancy rate and information on other short term rentals in your area, you can now compare your property’s performance to other rentals. 

    Look for patterns and trends in the data to see what factors may be impacting your property’s occupancy rate.

    For example, are other short term rentals for sale in your area offering similar amenities at lower prices? Is the guest experience at other rentals more appealing?

    Step 4: Identify Areas for Improvement

    If your property’s occupancy rate is lower than other short term rentals in your area, find ways to improve. Take a closer look at your property’s listing and think about how you can improve the guest experience.

    When you visit Mashvisor’s investment property features page, you will be able to compare the rental strategy of similar properties. 

    Gather data on what guests are looking for in a short term rental and use the information to optimize your listing.

    Step 5: Make Changes and Track Your Progress

    With a plan for improvement in place, it’s time to make changes to your property and start tracking your progress. 

    Continuously monitor your occupancy rate and compare it to other short term rentals in your area to see how your property is performing. Also, update your listing as needed and keep gathering feedback from guests to improve their experience.

    Fortunately, the process is as easy as ABC when you use the above tools from Mashvisor. With the information you’ll get with such tools, you can easily see how your Airbnb occupancy rate compares to others, and optimize it.

    Improve your Airbnb occupancy rate for short term rentals with a 7-day free trial with Mashvisor.

    What Is a Good Occupancy Rate for Short Term Rentals?

    Note that a good Airbnb occupancy rate for short term rentals can vary depending on factors like the location, season, and the size and type of property. But, on average, a healthy occupancy rate for an Airbnb can range from 50% to 70%.

    But, properties located in areas where tourists visit often can achieve high occupancy rates of around 80%-90%. Also, some properties experience high occupancy rates during peak travel and festive periods.

    Remember that the industry standard for occupancy rates can change over time. So, it’s always a good idea to stay up to date and monitor the occupancy rates in your specific area. 


    The Airbnb occupancy rate for short term rentals is one of the most important metrics to analyze when trying to invest in real estate. It helps to ensure that you do not invest in a property that will not be profitable.

    In this article, you learned what Airbnb occupancy rate is and its importance to you as a real estate investor. You also knew how to improve the occupancy rate of your new or old short term rental. 

    Then, you discovered how Mashvisor could help you compare the occupancy rate of your Airbnb rental to other similar properties in the area. In addition, you also found out how to improve your occupancy rate using the data you gathered from Mashvisor.

    It is to show you that Mashvisor’s tools are the best in the market for any real estate investor looking to improve their occupancy rate fast.

    To boost your Airbnb occupancy rate for short term rentals, schedule a demo today with Mashvisor.

    Optimize Your Airbnb Occupancy: Learn About Short Term Rental Occupancy Rates
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