Short-term vacation rentals can be a lucrative and profitable business for real estate investors. However, the industry has its own set of terms and terminologies, so if you’re interested in investing in short-term vacation rentals, let’s get familiar with the jargon. We’ve created a helpful vacation rental property glossary of the most important terms and definitions associated with short-term rental investment and vacation properties.
Be sure to book mark this page, as we continue to add language and terms each month.
Vacation Rental Glossary
| ADR: average daily rate |
| Airbnb: one of the largest short term rental platforms in the world. |
| Amenities: comfort or leisure items provided by the host to the guest |
| Blackout dates: the period when vacation rental owners do not accept reservations to host guests. |
| Cancellation policy: the terms and conditions set by vacation rental hosts regarding the cancellation of reservations. |
| Channel manager: a platform that allows hosts to synchronise availability and rates across multiple booking channels. |
| Check-in: the process of welcoming guests to the vacation rental. |
| Check-out: the process of vacating the rental unit. |
| Closed period: a period of time/dates the property owner blocks out for personal use, renovations, etc. |
| Co-hosting: a situation where a host shares their property management responsibilities with a co-host. |
| Comp set: a group of similar sized properties to compare your property’s performance against |
| Daily rate: the dollar amount a guest pays for staying each night in a property |
| Damage deposit: a sum of money guests pay to cover any damages they may cause during their stay. |
| Direct bookings: when guests book directly with the host instead of through a booking platform. |
| Dynamic pricing: the process of adjusting vacation rental rates to match the market demands. |
| Future occupancy: how far in advance your guests are booked |
| Guest management: the process of providing quality service to guests during their stay. |
| Guest: the person who books and stays in the vacation rental unit. |
| Home sharing: renting out a portion or all of your primary residence for short-term rentals. |
| Host: the person who owns, manages, or rents out the vacation rental. |
| Housekeeping: cleaning and maintaining the vacation rental unit. |
| Keyless entry: a door lock that allows guests to enter a code to access the property. |
| Lead time: how far in advance do guests book their reservations |
| Listing: the advertisement of your vacation rental on an OTA. |
| Maintenance: keeping the vacation rental in good condition and ensuring necessary repairs are made. |
| Minimum stay: the minimum number of days vacation rental hosts require guests to stay. |
| Nightly rate: the amount a guest pays to stay each night in a property |
| Occupancy rate: refers to the average percentage of time your vacation rental home is rented out over a given period. |
| Owner’s closet: a closet or area used for supplies or personal owner items, usually locked from guests. |
| OTA (Online Travel Agency): booking platforms like Airbnb, Booking.com, and Expedia, where guests can reserve accommodations. |
| Pacing: how your property is performing within a set time frame |
| PMS (Property Management System): a software system that helps to manage and automate vacation rentals’ operations. |
| Property rules: the guidelines set by vacation rental hosts to ensure compliance and safety. |
| Ratings and Reviews: feedback from guests about their rental experience that helps other guests make informed decisions. |
| Rental agreement: the contract between the host and the guest that outlines the terms and conditions of renting the vacation rental unit. |
| Rental Arbitrage: the practice of renting or subetting a property you do not own but have under a lease |
| Revenue management: the strategy of optimizing revenue by adjusting pricing, availability, and marketing. |
| Service fee: a charge levied by booking platforms for facilitating a transaction between guests and |
| Short-term vacation rental: an accommodation type rented out for a period of less than 30 days. |
| STR: acronym for short-term rental |
| Superhost: a vacation rental host who has achieved exceptional ratings, reviews, and guest satisfaction. |
| Vacation rental management company: a professional third-party company that helps to manage and maximize occupancy rates. |
| Vacation rental: a rented home, condo, apartment, or other dwelling unit where travellers stay for leisure or business trips. |
| VRBO: a large online platform for short-term rentals |
Like every industry, short-term rentals have a language of their own. So by keeping this glossary for short-term rental properties handy, you can feel more confident in your understanding of this exciting segment of real estate.
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