Take Your Pick
Financials
Advertised price:
the price per night that a property manager publicizes to potential customers.
Amenity fee:
an added fee for use of and access to certain amenities.
Average daily rate (ADR):
a metric that represents the average rental income per occupied room in a specified period of time. It is calculated by dividing the average total revenue earned by the number of occupied properties.
Average Rate Index (ARI):
a metric that compares a property’s average daily rate with that of competing properties over a certain time period. This ranking indicates to property managers whether they should change or maintain their current rates.
Average room rate:
another term for average daily rate (ADR).
Bartered services:
services property managers receive in exchange for a stay at their property rather than payment.
Best available rate (BAR):
the lowest rate available to guests, can fluctuate throughout a week or even a day.
Best rate guarantee:
the promise that the rate advertised is the lowest rate available.
Booking curve:
a visual map of the increase or decrease in bookings over a certain period of time, indicating to property owners and managers when and how to adjust rates and availability in order to maximize bookings.
Booking policy:
the terms and conditions surrounding a reservation, pertaining to payment requirements, cancellations and damage deposits.
Break-even point:
the point at which monthly rental income is enough to cover all the operating expenses and bills associated with ownership and maintenance of the property.
Channel fee:
the amount hosts must pay to an online booking channel in exchange for listing their properties on that channel.
Competitive set:
a collection of similar rentals that property managers compare to their properties for indicators of their offering, pricing, and overall performance.
Default rate:
the base rate for a property when it isn't raised on account of a holiday or event.
Down payment:
a percentage of the total reservation fee that is paid by the guest at the time of the initial booking.
Escrow account:
an account - managed by a trusted third party - that holds payments during a transaction between two or more parties.
Fixed-rate/Fixed-term mortgage:
a mortgage with an interest rate that remains static for a specified period of time.
Guest fee:
a general term to refer to charges beyond that of the primary booking fee, such as cleaning or service fees.
Investment property loan:
a loan to finance the renovation of a property that will be sold or rented out.
Low season:
a time of year during which travel is less popular, resulting in fewer bookings for property managers and generally prompting them to lower their prices to stay competitive.
Net rate:
the total revenue a property manager earns per booking, once commission has been deducted.
Non-refundable rates:
pricing for reservations that cannot be refunded and are generally lower than refundable rates.
PCI compliance:
the measures that must be taken to protect consumers' financial information.
Pet deposit:
a payment required only of guests bringing pets along with them that is returned if the guest leaves the property damage-free.
Portfolio financing:
the practice of financing a property through the use of one's portfolio or a portion thereof as collateral.
Price per guest:
a pricing strategy wherein prices increase or decrease according to the number of guests in the party.
Promotions:
appealing discounts or add-ons offered by hosts to encourage bookings.
Property management cost:
the total of all expenses involved in managing a rental property.
Qualified rate:
a discounted rate given to guests that meet specific criteria.
Refundable booking:
a reservation that qualifies for a refund under specific circumstances.
Rent:
the sum of money a tenant must pay a landlord to reside on the property.
Rental discount:
a discount awarded to tenants who meet a specific deadline when paying rent.
Reservation deposit:
a portion of the total reservation fee or an extra refundable fee that must be paid upon booking in order to confirm the reservation.
Return on investment (ROI):
a measure of an investment's gains relative to its costs.
ROR:
an acronym for rates, occupancy and reviews, which are three elements a property manager must consider prior to making an investment.
Sales tax:
a tax that must be collected from guests by property managers operating in most US states.
Scam:
a fraudulent scheme carried out for monetary gain.
Security deposit:
a payment made by the guest to the host to cover costs of potential damages and refunded to the guest if no damages are incurred.
Sweat equity:
contribution to a venture in labor rather than funding.
Weekend pricing:
rates that apply to weekend reservations and are generally higher due to increased demand.
Institutions & Legalities
American Society of Home Inspectors (ASHI):
the oldest, largest and most respected professional organization for the education and certification of home inspectors.
Booking policy:
the terms and conditions surrounding a reservation, pertaining to payment requirements, cancellations and damage deposits.
Buyer’s agreement:
a legal document that bars an agent from showing anyone else a specific property until the prospective buyer states that they are no longer interested in purchasing it.
Eviction:
the expulsion of a tenant from a property by the property owner or manager.
Fair Housing Act:
a federal act in the United States that protects those buying or renting a property from discrimination.
Flood insurance:
insurance coverage for expenses incurred due to damage resulting from flooding. Property managers or homeowners operating in federally designated flood areas are required by law to purchase flood insurance.
Homeowners Association (HOA):
an organization that governs the properties of a planned community or complex.
House rules:
custom rules hosts or property managers outline on their listings to outline their expectations regarding their guests' behavior. Examples include no partying, no smoking and no pets.
Lease Term:
The duration of a lease, as agreed upon by the occupant and landlord.
Lease:
a contract facilitating the exchange of property for a temporary period of time for regular payments.
Lessee:
The party renting a property.
Lessor:
The party providing the tenant with a property in exchange for payment.
PCI compliance:
the measures that must be taken to protect consumers' financial information.
Regulations:
location-specific laws to which short-term rental property managers are subject regarding the number of days they rent our per year and other specifications.
Sharing economy:
a term to describe the industry that uses non-traditional peer-to-peer business models.
VRMA:
the Vacation Rental Management Association, which provides education and networking and development opportunities to vacation rental managers across the globe.
Inventory
Accessible vacation rental:
A short-term housing unit that has been built or modified to accomodate disabled travelers.
Amenties:
the appealing or useful features of a property.
Available nights:
the number of nights per year that a property is available to guests.
Holiday lets:
another word for vacation rentals.
Outdoor amenities:
a property's appealing or useful outdoor features.
Pet-friendly:
a term to describe properties that accomodate pets.
Pre-construction homes:
Properties sold by a developer prior to their construction, generally at a discounted price.
Real estate agent/Realtor:
a licensed professional that sells and rents properties on behalf of property owners.
Short-term rentals:
accommodations designated to be rented to travelers or guests for a short period.
Themed vacation rental:
a property that incorporates a specific theme into its features and design in order to stand out and attract travelers.
Timeshare:
a property with multiple owners who are free to use it for personal use at specific points in the year.
Vacation rental:
any type of property rented out temporarily to people on vacation, can refer to everything from standard apartments and apart-hotels to more unique lodgings like boathouses and yurts.
Villa holiday:
the European term for a vacation rental.
Marketing
Best rate guarantee:
the promise that the rate advertised is the lowest rate available.
Branding:
the process of associating one's business with a specific message or design.
Call-to-Action (CTA):
a prompt on a website that tells the user to take some specified action. Usually takes the form of a button or hyperlink and written as a command such as “Book Now” or “Check Availability”.
Distribution channel:
third-party platforms that advertise properties and facilitate bookings.
Managed distribution:
online property distribution that is carried out with the assistance of third-party services, like dynamic pricing solutions or a channel manager.
On brand:
a description of actions a business takes that are true to its brand and messaging.
Pet-friendly:
a term to describe properties that accomodate pets.
Promotions:
appealing discounts or add-ons offered by hosts to encourage bookings.
Qualified rate:
a discounted rate given to guests that meet specific criteria.
Referred booking:
a reservation that is made due to a referral from someone else.
Repeat guests:
guests who reserve a property after having stayed there previously.
Reviews:
public feedback from guests expressing their levels of satisfaction with their stays. On many platforms hosts can review guests as well.
SNAD:
significantly not as described – a term used to describe properties that do not meet expectations set by their online descriptions or photos.
Sustainable tourism:
travel that emphasizes making a positive impact on the destination or destinations visited.
Metrics
Average daily rate (ADR):
a metric that represents the average rental income per occupied room in a specified period of time. It is calculated by dividing the average total revenue earned by the number of occupied properties.
Average Length of Stay (ALOS):
the average number of nights that a guest stays at a property over a specifed duration.
Booking curve:
a visual map of the increase or decrease in bookings over a certain period of time, indicating to property owners and managers when and how to adjust rates and availability in order to maximize bookings.
Return on investment (ROI):
a measure of an investment's gains relative to its costs.
Operations
Broker:
a legally certified professional who purchases and sells property on others' behalves for commission.
Broom-clean:
a term used in the real-estate industry to describe a property that is both clean and free of excess things like personal items and debris.
Changeover days:
specific days of the week that property managers dedicate to the beginning or end of reservations.
Check-in:
the process through which guests declare their official arrival at a property.
Co-host:
a second host that assists the listing owner in managing the listing and seeing to guests' needs.
Distribution channel:
third-party platforms that advertise properties and facilitate bookings.
Double booking:
a reservation that overlaps with an existing booking, usually the result of listing properties on multiple channels without synching the corresponding calendars.
House rules:
custom rules hosts or property managers outline on their listings to outline their expectations regarding their guests' behavior. Examples include no partying, no smoking and no pets.
Instant booking:
a booking made on-the-spot without requiring prior approval from the host. Property managers can choose to enable this option or to maintain authority over who can book their properties.
Internal solutions:
tech solutions aimed at making internal operations - like distribution of tasks - more efficient.
Inventory:
a business term used to refer to the porfolio of properties a host has to offer consumers.
Key exchange solution:
a system to facilitate and simplify the process of giving keys to guests and collecting them upon checkout.
Low season:
a time of year during which travel is less popular, resulting in fewer bookings for property managers and generally prompting them to lower their prices to stay competitive.
Maintenance solution:
a platform that simplifies the process of maintaining one's properties.
Maintenance:
the measures property managers take to ensure their properties remain in working order.
Managed distribution:
online property distribution that is carried out with the assistance of third-party services, like dynamic pricing solutions or a channel manager.
Minimum stay:
the required number of dates a guest must reserve in order to book a property, as set by the host.
No-show:
a guest who does not arrive for check-in.
Off-peak:
dates during which there isn't a lot of demad for vacation rentals.
Outsourcing:
the act of delegating specific operations to an external company rather than manging them in-house.
Over-improvement:
a term to describe enhancements made to a property that will not result in monetary or business gain.
Property Manager:
a professional hired to facilitate real estate property management for accomodations that will be rented for long or short-term stays.
Quiet hours:
specified hours during which guests are expected to keep noise to a minimum.
Referred booking:
a reservation that is made due to a referral from someone else.
Repeat guests:
guests who reserve a property after having stayed there previously.
Reservation confirmation:
a message sent from a host to a guest that verifies that the reservation was made succesfully.
Reservation:
the purchase of a property for specific dates.
Shoulder season:
a period that seperates high and low seasons and doesn't fall into either category.
Tenant:
an individual who pays rent to occupy a property for a temporary period of time.
Welcome app:
an app that aims to enhance guests' experience by providing lists of local attractions and recommendations as well as instructions regarding the property and more.
Tech & Tools
API integration:
a bridge that enables integration and data sharing between two property tech platforms, such as a channel manager and an online booking channel.
Call-to-Action (CTA):
a prompt on a website that tells the user to take some specified action. Usually takes the form of a button or hyperlink and written as a command such as “Book Now” or “Check Availability”.
Cleaning service:
a third-party company that property managers can hire to carry out their cleaning operations.
Demo:
an inside look at a software platform for prospective users to help them determine if it's the best property tech solution for them.
Distribution channel:
third-party platforms that advertise properties and facilitate bookings.
Features:
tools offered by property management software.
Global Distribution System (GDS):
a system that facilitates transactions between service providers within the travel industry.
Internal solutions:
tech solutions aimed at making internal operations - like distribution of tasks - more efficient.
Key exchange solution:
a system to facilitate and simplify the process of giving keys to guests and collecting them upon checkout.
Listing site:
a platform dedicated to showcasing properties available for rent, often including everything from treehouses and huts to luxury aparthotels.
Maintenance solution:
a platform that simplifies the process of maintaining one's properties.
Managed distribution:
online property distribution that is carried out with the assistance of third-party services, like dynamic pricing solutions or a channel manager.
Mapping:
the synchronization between a listing on a property management software and the correpsonding listing on an OTA.
Marketplace:
a collection of third-party solutions with which a property management software has built direct integrations.
guesty marketplace
Native app:
an application designed and developed specifically for mobile devices.
Owners portal:
a dedicated dashboard that enables homeowners who outsource the management of their homes to view their properties' performance.
Property tech:
also known as prop tech, refers to the application of technology to real estate markets and the use of innovation to simplify or improve operations in the property industry.
Reservation system:
the system through which bookings are made and processed.
Self check-in:
the process whereby a guest checks themselves into a rental, an option that generally requires hi-tech solutions that enable keyless access.
Software solution:
an operating system designed to solve a specific problem or simplify a particular task.
Vacation rental software:
a solution built to help property managers run multiple vacation rental properties simultaneously