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Intermediate terms

Essential Short-Term Rental Terms

This curated collection includes key terms that might be helpful when exploring short-term and vacation rentals. It covers the specific language used in managing properties on platforms like Airbnb and VRBO, focusing on hospitality and high turnover. These terms were selected based on common questions and areas where investors often need clarity.

Learning Path

1

Online Travel Agency

An Online Travel Agency (OTA) is a digital marketplace that allows real estate investors to list and manage short-term rental properties, connecting them with travelers for temporary accommodations.

Beginner5 min
2

Dynamic Pricing

Dynamic pricing is a flexible pricing strategy that adjusts the price of a property or service in real-time based on market demand, supply, competitor rates, and other variables to optimize revenue and occupancy.

Intermediate8-9 min
3

Occupancy Rate

The occupancy rate is a key real estate metric representing the percentage of a property's available units or space that is currently leased or occupied by tenants, indicating demand and income stability.

Intermediate14-15 min
4

Co-hosting

Co-hosting in real estate refers to a partnership where a property owner collaborates with an experienced individual or company to manage their short-term rental property, sharing responsibilities and often a percentage of the rental income.

Beginner5-6 min
5

Average Daily Rate

Average Daily Rate (ADR) is a key performance indicator (KPI) that measures the average rental income generated per occupied room or unit per day, primarily used in the hospitality and short-term rental industries.

Beginner5 min
6

Automated Messaging

Automated messaging involves using pre-programmed digital communications (emails, SMS) to automatically engage with leads, tenants, or investors based on specific triggers or schedules, streamlining real estate operations and enhancing communication efficiency.

Intermediate5 min
7

Short-Term Rental Property Manager

A Short-Term Rental (STR) Property Manager is a professional or company that handles all operational aspects of managing properties rented for short periods, such as vacation homes or Airbnb units, aiming to maximize owner income and ensure positive guest experiences.

Beginner5 min
8

Guest Experience

Guest experience refers to the overall impression and satisfaction a guest has during their stay at a rental property, influencing reviews, bookings, and profitability for investors.

Beginner5 min
9

Short-Term Rental

A property rented out for short periods, typically less than 30 days, to guests for temporary stays, often managed through platforms like Airbnb or Vrbo.

Beginner5 min
10

Short-Term Rental Ordinance

A Short-Term Rental (STR) Ordinance is a local law or set of regulations enacted by municipal or county governments to govern properties rented out for short periods, typically less than 30 days. These ordinances address community concerns, public safety, and taxation related to short-term rental operations.

Intermediate5-6 min
11

Smart Lock

A smart lock is an electronic and mechanical locking device that allows users to control access to a property remotely using a smartphone, keypad, or biometric data, enhancing security and convenience for real estate investors.

Beginner5 min
12

Channel Manager

A software solution used by property managers and owners to manage and distribute their rental property listings across multiple online travel agencies (OTAs) and booking platforms from a single interface, ensuring real-time synchronization of availability and pricing.

Intermediate5-6 min
13

Host Fees

Charges levied by online booking platforms on property owners (hosts) for listing and facilitating bookings of short-term rental properties, directly impacting profitability.

Beginner2-3 min
14

Seasonal Demand

Seasonal demand describes the predictable increases or decreases in real estate market activity that occur at specific times of the year, influenced by factors like weather, holidays, and school schedules.

Beginner5 min
15

Professional Real Estate Photography

Professional real estate photography involves hiring skilled photographers to capture high-quality images of a property, showcasing its best features to attract potential buyers or tenants and maximize its market appeal.

Beginner6 min
16

STR Pro Forma

An STR Pro Forma is a detailed financial projection and analysis tool used to evaluate the potential profitability and performance of a short-term rental property, incorporating dynamic pricing, seasonal occupancy, and higher variable operating expenses.

Advanced8 min
17

Short-Term Rental Zoning Laws

Short-Term Rental (STR) zoning laws are local ordinances that regulate the use of residential properties for transient lodging, typically for stays under 30 days. These laws dictate where STRs can operate, what permits are required, and how they must be managed, significantly impacting real estate investors.

Intermediate5 min
18

Short-Term Rental Permitting

Short-term rental permitting involves obtaining necessary licenses and adhering to local regulations for operating properties as vacation rentals, ensuring legal compliance and avoiding penalties.

Intermediate5-6 min
19

Short-Term Rental Arbitrage

Short-Term Rental Arbitrage is an investment strategy where an individual leases a property long-term and then subleases it on a short-term basis, typically through platforms like Airbnb, to profit from the difference in rental rates.

Intermediate8 min
20

Revenue Per Available Room

Revenue Per Available Room (RevPAR) is a key performance indicator (KPI) in the hotel industry that measures a hotel's ability to fill its available rooms and generate revenue from them, calculated by multiplying average daily rate by occupancy rate.

Intermediate5 min
21

Transient Occupancy Tax

Transient Occupancy Tax (TOT) is a local tax levied on the rent paid by guests for short-term accommodations, such as hotels and vacation rentals, typically for stays less than 30 consecutive days. It funds local services and infrastructure.

Intermediate5 min
22

Guest Communication

Guest communication involves all interactions between a property owner or manager and guests in a short-term rental, crucial for guest satisfaction and property profitability.

Beginner5-6 min
23

Cleaning Fee

A cleaning fee is a charge collected by a landlord from a tenant, either upfront or from a security deposit, to cover the cost of cleaning a rental property upon lease termination.

Beginner5 min
24

Short-Term Rental Insurance

Short-Term Rental (STR) insurance is a specialized policy designed to protect property owners who rent out their residential properties for short durations, typically less than 30 days, covering unique risks like property damage, liability, and loss of income associated with commercial use.

Intermediate5 min
25

Listing Optimization

Listing optimization is the strategic process of enhancing a property's online and offline presentation to attract the maximum number of qualified buyers or tenants, leading to a faster sale or lease at the best possible price.

Intermediate8-9 min
26

Guest Review Management

Guest Review Management is the systematic process of monitoring, responding to, and leveraging feedback from guests or tenants across online platforms to enhance property reputation, improve satisfaction, and drive higher occupancy and rental income for real estate investors.

Intermediate8 min