The short-term rental industry is dynamic and exciting, but it comes with its own set of jargon that can sometimes feel overwhelming. Whether you’re a new host or a seasoned property manager, understanding this Short-Term Rental Glossary is essential to run a successful short-term rental business.
This comprehensive glossary was designed to help property managers and rental owners decode the jargon, streamline their operations, and take full control of their properties. Ready to dive in? Let’s explore the language of short-term rentals!
Glossary of Key Terms
Here’s a complete guide to the most important terms in the short-term rental industry. Whether you’re a property manager or a rental owner, this glossary will help you master the terminology
Advance Payment
Definition: A partial or full payment made by a guest at the time of booking to secure the reservation.
Example: A host may require a 50% advance payment at the time of booking, with the balance due upon check-in.
Amenities
Definition: Features or services provided by the host to enhance the guest’s stay.
Example: Popular amenities include Wi-Fi, air conditioning, free parking, and a pool.
Average Daily Rate (ADR)
Definition: The average amount of money earned per night for an occupied rental.
Example: If you earn $900 from 3 nights of bookings, the ADR is $300. It’s a key metric for tracking how much you earn per booked night.
Base Rate
Definition: The starting price for a property per night before additional fees.
Example: A host sets the base rate at $150 per night, with cleaning and service fees added on top.
Blocked Days/Nights
Definition: Dates when a property is unavailable for bookings, either due to personal use or maintenance.
Example: A host may block days on the calendar for deep cleaning or renovations.
Booking Engine
Definition: A tool that allows guests to book directly through a host’s website.
Example: A booking engine integrates with a website to process reservations without using OTAs.
Booking Window
Definition: The number of days between when a guest books and their check-in date.
Example: A guest books on January 1st for a stay starting January 10th. The booking window is 9 days. Knowing this helps you plan promotions for last-minute or early bookings.
Cancellation Fee
Definition: A fee charged to guests who cancel their reservation, depending on the cancellation policy.
Example: A $50 cancellation fee might apply if a guest cancels within 7 days of their stay.
Cancellation Policy
Definition: The rules set by a host regarding refunds if a guest cancels.
Example: A strict cancellation policy may only refund guests if they cancel 14 days in advance.
Check-in/Check-out Time
Definition: The designated times when guests can arrive and must depart the property.
Example: Check-in is usually after 3 p.m., and check-out is by 11 a.m.
Channel Manager
Definition: A tool that syncs your property listings across booking platforms like Airbnb and your own website.
Example: A channel manager ensures your calendar and prices are consistent everywhere to avoid double bookings.
Cleaning Fee
Definition: An extra fee charged to cover cleaning costs after a guest’s stay.
Example: A $50 cleaning fee might be added to each reservation to ensure the property is spotless for the next guest.
Direct Booking
Definition: A reservation made directly with the host, bypassing OTAs and saving commission fees.
Example: Guests who book through a host’s website often benefit from lower prices.
Double Booking
Definition: When a property is booked for the same dates by multiple guests due to a calendar sync error.
Example: Using a channel manager can help prevent double bookings.
Dynamic Pricing
Definition: Adjusting nightly rates based on factors like demand, season, or events.
Example: Prices might increase during a local festival or drop during off-peak times to attract bookings.
Extra Person Fee
Definition: An additional charge for guests beyond the property’s standard occupancy.
Example: A host charges $25 per night for each guest over 4 people.
Guest Experience
Definition: The overall satisfaction of a guest during their stay.
Example: Personalized touches like a welcome basket can enhance the guest experience.
Guest Guide
Definition: A document or booklet provided to guests with important information about the property and local area.
Example: A guest guide might include Wi-Fi passwords, house rules, and nearby restaurant recommendations.
Hostaway
Definition: A property management software that helps manage short-term rentals across multiple platforms.
Example: Hostaway offers tools for calendar syncing, messaging, and performance tracking.
House Rules
Definition: Guidelines set by the host for guests staying at their property.
Example: House rules might include quiet hours and no smoking indoors.
iCal
Definition: A calendar format used to sync booking dates across platforms.
Example: An iCal link allows a host to sync Airbnb bookings with your own website.
Instant Book
Definition: A feature that allows guests to book your property without needing your approval first.
Example: Instant Book makes the booking process faster and can help you attract more guests.
Minimum Stay
Definition: The shortest number of nights a guest can book.
Example: A 2-night minimum stay might be required for weekends or holidays to maximize income.
Occupancy Rate
Definition: The percentage of nights your rental is booked over a certain period.
Example: If your property is booked for 15 nights in a month with 30 available nights, the occupancy rate is 50%.
Online Travel Agency (OTA)
Definition: A website where travelers can book accommodations, such as Airbnb, Vrbo, or Booking.com.
Example: Listing your rental on OTAs helps more people discover your property.
Peak Season
Definition: The time of year when your rental is most in demand.
Example: Summer might be peak season for beach rentals, with higher prices and occupancy.
PMS (Property Management System)
Definition: Software used to manage reservations, calendars, and communications for rental properties.
Example: A PMS can automate booking confirmations and cleaning schedules.
Property Manager
Definition: A person or company responsible for overseeing the operations of a short-term rental property on behalf of the owner.
Example: A property manager handles tasks like guest communication, cleaning, maintenance, and pricing strategies, allowing owners to take a hands-off approach.
Revenue Management
Definition: Using pricing strategies to maximize your rental income.
Example: Adjusting your nightly rate based on local events or market trends is part of revenue management.
RevPAR (Revenue Per Available Room)
Definition: A metric that measures total revenue per available night, combining ADR and occupancy rate.
Example: If a property has a 75% occupancy rate and an ADR of $100, the RevPAR is $75.
Screening
Definition: The process of evaluating potential guests before approving a booking.
Example: A host may check reviews or request identification to screen guests.
Seasonality
Definition: Changes in demand based on the time of year.
Example: Winter may be a low season for beach rentals, while summer is high season.
Security Deposit
Definition: A refundable amount charged to guests in case of damages or extra cleaning.
Example: A $200 security deposit can protect you if something breaks during a stay.
Self Check-in
Definition: A check-in process where guests access the property without meeting the host in person.
Example: Hosts often use smart locks or lockboxes for self check-in.
Service Fee
Definition: A charge added by OTAs to cover platform operations and customer support.
Example: Airbnb adds a service fee to the total price guests pay.
Shoulder Season
Definition: The time between peak and off-peak seasons when demand is moderate.
Example: Spring and fall are often shoulder seasons for many destinations.
Smart Lock
Definition: A keyless lock that lets guests enter using a code or app.
Example: A smart lock makes check-ins easy, especially for late arrivals.
Smart Pricing
Definition: A feature that automatically adjusts rental rates based on demand, season, and local trends.
Example: A Smart Pricing tool raises rates during holidays and lowers them during off-peak times.
STR (Short-term Rental)
Definition: A furnished property rented out for short stays, typically less than 30 days.
Example: STRs include vacation homes, apartments, and shared spaces.
Turnover / Changeover
Definition: Preparing your property for the next guest after a checkout.
Example: Turnover, or changeover, includes cleaning, restocking supplies, and making sure everything is ready for new guests.
USP (Unique Selling Proposition)
Definition: A feature or benefit that makes a property stand out from the competition.
Example: A lakefront view or a private hot tub could be a property’s USP.
Upselling
Definition: Offering guests additional services or upgrades to enhance their stay and increase revenue.
Example: A host might upsell airport transfers or late check-out options.
Vacation Rental Insurance
Definition: A policy that protects hosts against damages, liability, or lost income.
Example: Vacation rental insurance may cover unexpected cancellations due to natural disasters.
Mastering Short-Term Rental Glossary to Grow Your Business
Understanding the terminology of the short-term rental industry is essential for navigating this competitive market with confidence. Whether you’re managing one property or an entire portfolio, knowing these key terms will help you communicate effectively, optimize your operations, and grow your business.
One term that stands out in this glossary is Direct Booking—a game-changer for short-term rental owners. A direct booking website not only helps you save on OTA fees but also lets you build stronger connections with your guests. Plus, it gives you full control over your branding and pricing strategy.
Let’s Build Your Direct Booking Website
At Paina Hospitality, we specialize in creating professional, user-friendly websites that make direct bookings simple and seamless. By having your own website, you can showcase your property, attract more bookings, and grow your business on your terms.
Get in touch with us to learn how a direct booking website can transform your short-term rental business. Let’s make your property stand out!
