Glossary
Comprehensive definitions for Airbnb, vacation rental, and property investment terminology
142 terms
A 1031 exchange is a tax-deferral strategy under IRS Section 1031 that allows short-term rental investors to sell an investment property and reinvest the proceeds into a like-kind property while deferring capital gains taxes.
Absorption rate measures how quickly new short-term rental listings become occupied. Learn how to calculate and use it for market health assessment.
An active listing is a short-term rental property with booking activity in the last 12 months. Learn how active listings are defined and why they matter.
Adjusted occupancy rate excludes owner-blocked nights for a true measure of booking performance. Learn the formula and how it compares to standard occupancy.
Airbnb is the world's largest online marketplace for short-term rentals. Learn how it works, host fees, and tips to succeed on the platform.
Airbnb Experiences are activities and tours hosted by locals on the Airbnb platform. Learn how they work, how to create one, and how they can boost hosting revenue.
Airbnbust is a colloquial term for the short-term rental profitability downturn. Learn what caused it, whether it is real, and how to protect your investment.
AirCover is Airbnb's free host protection program covering up to $3M in damage. Learn what it covers, its limitations, and how to file a claim.
Amenities are the features, supplies, and services provided at a short-term rental. Learn which amenities guests value most and how they impact bookings.
An API is a set of protocols enabling software systems to exchange data. Learn how APIs power short-term rental tools, pricing, and market analytics.
Automated messaging sends pre-configured messages triggered by booking events like confirmation, check-in, and checkout. Learn how to set it up for your STR.
Available nights are the calendar nights a short-term rental is open for booking. Learn how this metric impacts occupancy, revenue, and market analysis.
Average Daily Rate (ADR) measures the average rental income per booked night. Learn how to calculate ADR, what a good ADR looks like, and strategies to improve yours.
Average Length of Stay (ALOS) measures the mean number of nights per booking. Learn how to calculate ALOS, ideal benchmarks, and strategies to optimize stay length.
Average Transaction Value (ATV) measures mean revenue per reservation. Learn the formula, benchmarks, and how to increase your per-booking revenue.
Base price is the starting nightly rate before dynamic pricing adjustments. Learn how to set it, why it matters, and how it affects your Airbnb revenue.
Bed and Breakfast (B&B) is a small, owner-operated lodging establishment that offers overnight accommodation along with a morning meal, typically set in a.
Benchmarking compares your short-term rental performance to competitors. Learn how to benchmark ADR, occupancy, and revenue to find optimization opportunities.
Blocked dates are calendar dates marked as unavailable for booking at a short-term rental. Learn when and how to use blocked dates strategically.
A booking curve shows how reservations accumulate over time for a future date. Learn how to read it and use it to optimize your Airbnb pricing strategy.
Booking lead time is the number of days between reservation and check-in. Learn typical lead times, how they vary by market, and how to use them for pricing.
Booking pace measures how fast reservations accumulate for a future period. Learn how to track booking pace and use it to optimize your pricing strategy.
Booking.com is a leading OTA for hotels and vacation rentals. Learn how it works for STR hosts, its fee structure, and how it compares to Airbnb and Vrbo.
Boutique Hotel is a small, independently operated hotel typically offering 10 to 100 rooms with distinctive design, personalized service, and a unique.
Break-even occupancy is the minimum occupancy rate a short-term rental must achieve to cover all operating expenses and debt service payments, producing.
A business license is a general government authorization to operate a business. Learn why STR hosts need one and how to apply.
A cancellation policy defines the rules and refund terms when a short-term rental reservation is cancelled. Learn how to choose the right policy.
Cap rate (capitalization rate) is the ratio of a property's net operating income to its current market value or purchase price, expressed as a percentage.
Cash flow is the net amount of money moving in and out of a short-term rental investment after all income is collected and all expenses are paid,.
Cash-on-cash return is the annual pre-tax cash flow generated by an investment property divided by the total cash invested, expressed as a percentage.
A channel manager syncs availability and rates across Airbnb, Vrbo, and other booking platforms in real time. Learn how it prevents double bookings.
Check-in and check-out are the guest arrival and departure processes at a short-term rental. Learn how to set optimal times and create smooth transitions.
A cleaning fee is a one-time charge added to each short-term rental reservation to cover turnover costs. Learn how to set the right cleaning fee.
A co-host is someone who helps manage an Airbnb listing. Learn how co-hosting works, typical fee structures, and how to find and manage co-hosts.
Commission is the percentage an OTA, property manager, or booking agent retains from each reservation. Learn typical rates and how commissions affect your net revenue.
A comp set is a group of comparable short-term rental properties used for benchmarking performance. Learn how to build and use your competitive set.
A conditional use permit (CUP) is a zoning approval that allows a specific use not normally permitted in a zone. Learn how CUPs apply to STRs.
Cost segregation is a tax strategy that reclassifies components of a rental property into shorter depreciation categories, allowing short-term rental.
Cross-listing is the practice of publishing a vacation rental on multiple booking platforms. Learn the benefits, challenges, and tools for managing cross-listings.
Debt service coverage ratio (DSCR) is the ratio of a property's net operating income (NOI) to its annual mortgage payments, measuring whether rental.
Demand in short-term rentals is the total number of nights travelers are willing to book. Learn how to measure and respond to STR demand trends.
Demand factor is a coefficient applied to your base price that raises or lowers rates based on real-time market demand. Learn how it drives dynamic pricing.
Depreciation is a tax deduction that allows short-term rental owners to recover the cost of their property and its improvements over a set useful life,.
A direct booking is a reservation made without a third-party OTA, saving hosts 15-20% in commission fees. Learn strategies to build a direct booking channel.
A double booking occurs when two reservations overlap for the same dates at a short-term rental. Learn how to prevent and handle double bookings.
Dynamic pricing automatically adjusts your nightly rate based on demand, seasonality, and market data. Learn how it works and why top Airbnb hosts use it.
A dynamic pricing tool is software that automatically adjusts your nightly rates based on demand, competition, and seasonality. Compare the top tools here.
An early-bird discount rewards guests who book well in advance. Learn how to set it, when it makes sense, and how it improves cash flow for Airbnb hosts.
Entire Home / Entire Place is a short-term rental listing type where guests have exclusive access to the full property, including all bedrooms, bathrooms,.
An extra guest fee is a per-person nightly charge applied when the number of guests exceeds a set threshold. Learn how to set it and when to use it.
A GDS is a computer network connecting travel agents and booking systems to real-time inventory for flights, hotels, and increasingly vacation rentals.
GOPPAR measures gross operating profit per available room-night. Learn the formula, how it goes beyond RevPAR, and why it matters for STR profitability.
Gross booking revenue is the total amount collected per reservation including all fees. Learn how it differs from nightly revenue and why it matters for STR hosts.
Gross rental yield is the annual gross rental income of a property divided by its purchase price or current market value, expressed as a percentage.
Gross revenue is the total income from short-term rental bookings before any expenses. Learn how to calculate it, what it includes, and how it differs from net revenue.
Guest communication encompasses all messages between a short-term rental host and guest before, during, and after a stay. Learn templates and best practices.
Guest Favorite is an Airbnb badge for top-rated listings based on reviews, ratings, and reliability. Learn how to earn it and how it differs from Superhost.
The guest service fee is the 14-16% charge Airbnb adds to a guest's booking subtotal. Learn how it affects your bookings and what guests actually pay.
HOA restrictions are homeowners association rules that may limit or prohibit short-term rentals. Learn how HOA rules affect Airbnb hosting.
Homestay is a type of accommodation where the guest stays in the host's personal residence while the host is also present and living there.
The host service fee is the percentage Airbnb deducts from each payout, typically around 3%. Learn how it works, when it applies, and how to maximize your net revenue.
The host-only fee is an alternative Airbnb fee structure where the host pays the entire service fee (14-16%), eliminating the guest service fee at checkout.
House rules are host-defined guidelines that set guest expectations for behavior, property care, and policies during a short-term rental stay.
iCal sync uses the .ics calendar format to synchronize availability across Airbnb, Vrbo, and other booking platforms. Learn how it prevents double bookings.
Instant Book lets guests book an Airbnb without host approval. Learn the pros and cons, how it affects search ranking, and when to enable it.
A last-minute discount is a price reduction for upcoming unbooked dates. Learn when to use it, how much to discount, and how it fits your Airbnb pricing strategy.
A length-of-stay discount reduces the nightly rate for longer bookings. Learn how weekly and monthly discounts boost revenue and reduce turnover on Airbnb.
Liability insurance protects STR hosts against injury and property damage claims from guests. Learn coverage types, costs, and requirements.
Listing optimization is the process of improving your short-term rental listing to increase visibility, bookings, and revenue. Learn proven strategies.
A management fee is the percentage of rental revenue a property manager charges for operating a short-term rental, typically 15-30%. Learn fee structures and what to expect.
A market dashboard is an analytics tool displaying aggregated short-term rental market data. Learn what to look for and how to use one effectively.
Market saturation occurs when short-term rental supply exceeds demand. Learn how to identify, measure, and adapt to saturated STR markets.
Market value is the estimated price at which a property would sell in a competitive and open market, assuming both buyer and seller are knowledgeable,.
Maximum price is the ceiling rate cap for a short-term rental. Learn how to set your rate cap to capture peak demand without deterring bookings.
Maximum stay is the longest booking duration allowed at a short-term rental. Learn when and why to set maximum stay limits on your property.
Mid-Term Rental (MTR) is a fully furnished residential property rented for stays lasting one to six months, bridging the gap between short-term vacation.
Minimum price is the lowest nightly rate a host will accept for a booking. Learn how to set your price floor to protect margins while maximizing occupancy.
Minimum stay is the fewest number of nights a guest must book at a short-term rental. Learn how to set the right minimum stay for maximum revenue.
The mortgage interest deduction allows short-term rental property owners to deduct the interest portion of their mortgage payments as a business expense.
Net operating income (NOI) is the total revenue generated by a short-term rental property minus all operating expenses, excluding mortgage payments,.
Net rental yield is the annual rental income minus all operating expenses, divided by the property's purchase price or market value, expressed as a percentage.
Net revenue is your short-term rental income after all expenses. Learn how to calculate it, what to deduct, and strategies to maximize your bottom line.
An annual night limit caps the number of nights per year a property can be rented as an STR. Learn how night caps work and how to maximize revenue.
Nightly rate is the price charged per night for a short-term rental stay. Learn what drives it, how to optimize it, and how it differs from base price and ADR.
A noise monitor is a privacy-safe device that measures decibel levels in short-term rentals to detect parties and ensure compliance. Learn how they work.
A non-owner-occupied rental is an STR where the owner does not live on-site. Learn the stricter regulations, permits, and strategies involved.
Occupancy limit is the maximum number of guests allowed in a short-term rental. Learn how limits are set, enforced, and why they matter.
Occupancy rate is the percentage of available nights booked over a given period. Learn how to calculate it, what a good rate looks like, and how to improve yours.
Occupancy tax collection is the process of collecting local lodging taxes from short-term rental guests. Learn tax types, rates, and compliance requirements.
Off-season is the period of lowest demand and reduced rates for short-term rentals. Learn strategies to maintain occupancy and revenue during slow months.
An online travel agency (OTA) is a third-party platform like Airbnb or Vrbo where travelers book short-term rentals. Learn OTA fees, pros, and strategies.
Operating expenses are all the recurring costs required to run and maintain a short-term rental property, excluding mortgage payments, capital.
Orphan days are short unbookable gaps between reservations. Learn how they reduce revenue, how to prevent them, and strategies to fill gap nights on Airbnb.
An owner-occupied rental is an STR where the owner lives on-site during guest stays. Learn how it affects permits, taxes, and regulations.
Pacing compares forward-looking bookings to the same period last year. Learn how to use pacing data to optimize pricing and forecast short-term rental revenue.
Paid occupancy rate measures the percentage of available nights generating revenue. Learn how it differs from standard occupancy and why it matters for STR hosts.
Peak season is the period of highest demand and rates for short-term rentals. Learn how to maximize revenue and manage bookings during your market's busiest months.
A pet fee is an additional charge hosts apply when guests bring pets to a short-term rental. Learn how to set pet fees, what to charge, and pet policy best practices.
Platform fees are the combined charges that booking platforms like Airbnb, Vrbo, and Booking.com collect from hosts and guests for each reservation.
Potential annual revenue is the estimated maximum annual income a short-term rental property can generate based on market data, comparable listings,.
Premier Host is Vrbo's top-performer status for vacation rental hosts. Learn the requirements, benefits, and how it compares to Airbnb's Superhost program.
A primary residence requirement mandates that an STR must be the owner's main home. Learn how this rule works and which cities enforce it.
Private Room is a short-term rental listing type where the guest receives their own dedicated bedroom with a lockable door while sharing common areas such.
A pro forma is a forward-looking financial projection that estimates the revenue, expenses, and returns of a short-term rental investment based on market.
A property management system (PMS) is software that centralizes reservations, calendars, and operations for short-term rental hosts. Learn how to choose the right PMS.
Rack rate is the standard published nightly rate before any discounts or dynamic adjustments. Learn how it differs from base price and when it applies to STRs.
Rental arbitrage is a short-term rental business strategy where an entrepreneur leases a property on a long-term basis and then sublets it as a short-term.
A resort fee is a mandatory nightly charge for shared amenities like pools, gyms, and parking at short-term rental properties or HOA communities.
Response rate is the percentage of guest inquiries a host responds to within 24 hours. Learn why it matters, how it affects rankings, and how to improve yours.
Return on investment (ROI) is the total net profit generated by a short-term rental property divided by the total cost of the investment, expressed as a.
Revenue management is the strategic practice of optimizing pricing, inventory, and distribution to maximize short-term rental income. Learn core strategies here.
RevPAL measures average revenue per listing in your portfolio. Learn the formula, benchmarks, and how to use RevPAL to optimize multi-property performance.
RevPAN measures average revenue earned per available night. Learn the formula, how it differs from ADR, and strategies to maximize your nightly revenue potential.
RevPAR measures revenue efficiency across all available nights, not just booked ones. Learn the formula, how it compares to ADR, and why it matters for your Airbnb.
Reviews and ratings are guest feedback and star scores that evaluate a short-term rental stay. Learn how reviews impact rankings and strategies to earn 5 stars.
Data scraping is the automated extraction of listing data from rental platforms for market analysis. Learn how it works, its legality, and better alternatives.
Seasonality refers to predictable demand fluctuations by time of year. Learn how seasonal patterns affect Airbnb pricing, occupancy, and revenue strategies.
A seasonality index measures demand variation across seasons in a short-term rental market. Learn how to calculate and use it for smarter pricing.
A security deposit is a refundable hold or charge collected from guests to cover potential property damage during a short-term rental stay.
Self check-in lets short-term rental guests access the property independently using smart locks or lockboxes. Learn setup options and best practices.
Serviced Apartment is a fully furnished apartment that provides hotel-like services including regular housekeeping, front desk or concierge support, and.
Shared Room is a short-term rental listing type where guests share a sleeping space with the host or other guests rather than having a private bedroom.
A short-term rental (STR) is a furnished property rented for under 30 days. Learn STR types, regulations, and how to operate one successfully.
Shoulder season is the transition period between peak and off-season. Learn how to price and market your Airbnb during these moderate-demand months.
A smart lock is an electronic lock that generates unique guest access codes for keyless entry. Learn how smart locks streamline check-in for Airbnb hosts.
Smart Pricing is Airbnb's built-in dynamic pricing tool. Learn how it works, its limitations, and how it compares to third-party pricing tools.
A split stay is when Airbnb splits a guest's trip across two or more listings. Learn how it works, how it affects hosts, and how to benefit from split stays.
An STR permit is a government authorization required to legally operate a short-term rental. Learn how to apply, costs, and common requirements.
STR regulations are the collection of laws governing short-term rental operations. Learn key regulatory components and how to stay compliant.
A submarket is a smaller segment within a larger STR market with distinct performance characteristics. Learn how to identify and analyze submarkets.
Superhost is an Airbnb status awarded to top-performing hosts. Learn the requirements, benefits, and strategies to earn and maintain Superhost status.
Supply in short-term rentals is the total number of active rental properties in a market. Learn how to track and analyze STR supply trends.
Transient occupancy tax (TOT) is a tax on short-term stays under 30 days. Learn TOT rates, collection methods, and compliance for Airbnb hosts.
Turnover is the cleaning and preparation process between guest stays at a short-term rental. Learn how to streamline turnovers and reduce costs.
Unique Stay is a short-term rental category encompassing unconventional properties such as treehouses, yurts, tiny homes, A-frames, geodesic domes,.
Unit revenue is the total revenue generated by a single listing excluding taxes. Learn how to calculate it, track portfolio performance, and optimize each unit.
Vacation Rental is a fully furnished residential property rented to guests for short leisure stays, typically ranging from a few nights to several weeks.
Vacation rental software is the umbrella term for technology platforms that help STR hosts manage listings, pricing, guests, and operations. Compare options here.
Vrbo (Vacation Rentals by Owner) is a major vacation rental platform owned by Expedia Group. Learn how it works, fees, and how it compares to Airbnb.
A welcome guide is a property information document that provides guests with everything they need during their short-term rental stay. Learn what to include.
Year-over-Year (YoY) growth measures annual performance trends for short-term rentals. Learn the formula, what good YoY growth looks like, and how to track it.
Zoning regulations are land-use laws that determine where short-term rentals can legally operate. Learn how zoning affects STR eligibility.
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