Glossary
Strategy
55 terms1
1031 ExchangeA 1031 exchange is a US tax provision that lets an investor defer capital gains tax by reinvesting proceeds from a sold investment property into a like-kind property.1099-KA US IRS information return that payment processors and platforms issue to report the gross amount of payment transactions they settle for a payee.14-Day RuleA US tax rule under which rental income is tax-free and need not be reported if a home is rented out for 14 days or fewer during the year.
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Base RateThe foundational nightly price for a vacation rental before any fees, taxes, or dynamic pricing adjustments are applied.Business LicenseA business license is a government-issued permit authorizing an operator to conduct short-term rental activities as a commercial business in a specific jurisdiction.
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Certificate of OccupancyA certificate of occupancy is an official document confirming a property meets building codes and is legally approved for residential or commercial use.Corporate LeaseA rental agreement in which a company leases furnished housing, typically for its employees, often on mid-term terms rather than a conventional residential tenancy.
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DAC7An EU directive requiring digital platforms to collect and report sellers' and hosts' income and identity data to EU tax authorities.Demand ForecastingThe use of data and analytics to predict future booking demand for vacation rental properties.Direct Booking WebsiteA property manager's own branded website where guests can search availability and book without going through an OTA.DSCR LoanA DSCR loan is a real estate mortgage qualified on the property's debt-service-coverage ratio rather than the borrower's personal income.
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Early-Bird DiscountA reduced rate offered for bookings made well in advance of arrival, rewarding early commitment and securing occupancy ahead of time.Email MarketingThe use of targeted email campaigns to nurture past guest relationships, encourage repeat bookings, and drive direct reservations.Event-Driven PricingA pricing strategy that adjusts vacation rental rates based on local events, festivals, and occasions that spike demand.
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Google Vacation Rental AdsGoogle Vacation Rental Ads are property listings that appear directly in Google Search and Google Maps results, allowing vacation rentals to reach travelers outside of OTA platforms.Guaranteed RentGuaranteed rent is an arrangement where a property owner receives a fixed rent regardless of occupancy, while the operator keeps any income above that amount.Guest PersonaA profile representing a specific traveler segment that a vacation rental targets, based on demographics, preferences, and booking behavior.
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HOA RestrictionsRules in a homeowners association's governing documents (CC&Rs) that can limit or prohibit short-term rentals within a community.Holiday PricingPremium nightly rates applied during holidays and high-demand periods to maximize revenue from predictable surges in travel demand.Homeowner AcquisitionHomeowner acquisition is the marketing and sales process a management company uses to attract and sign new property owners to its portfolio.Host PermitA host permit (or STR permit) is a property-specific authorization required by many cities for operators to legally rent a home on a short-term basis.House HackingAn investment strategy in which an owner lives in one part of a property while renting out the other parts to offset or eliminate their housing costs.Hybrid Management ModelA hybrid management model blends more than one pricing or service structure, such as commission plus a guaranteed base or full-service plus self-service tiers.
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Last-Minute DiscountA reduced rate applied to bookings made close to the arrival date to fill unsold nights, including orphan and gap nights.Length-of-Stay DiscountA reduced nightly rate offered to guests who book longer stays, such as weekly or monthly reservations.Listing OptimizationThe process of improving a vacation rental listing's content, photos, and settings to increase visibility and bookings.Listing SEOListing SEO is the practice of optimizing a vacation rental's title, description, amenities, and photos to rank higher in booking platform and search engine results.Lodging TaxLodging tax (also called transient occupancy tax) is a government-imposed tax on short-term rental stays that hosts are required to collect from guests and remit to authorities.
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Master LeaseA long-term agreement in which one party leases an entire property or building from the owner and then re-rents the units, keeping the difference between the rent paid and the income collected.Micro-Season PricingAn advanced pricing strategy that uses 75+ granular time periods instead of traditional quarterly seasons.
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Peak SeasonThe time of year with the highest travel demand, when vacation rental rates and occupancy are at their maximum.Pet-Friendly HostingPet-friendly hosting means explicitly welcoming guests traveling with pets and adapting a vacation rental's policies, amenities, and pricing to accommodate animals.Price FloorThe minimum nightly rate a host allows a dynamic-pricing tool to charge, preventing automated rates from dropping below a defined threshold.Price OptimizationPrice optimization is the strategic process of setting vacation rental rates to maximize revenue by balancing occupancy, nightly rate, and booking lead time.Principal Residence RuleA regulation limiting short-term rental to a host's primary residence, often combined with an annual cap on the number of nights it can be let.Promotional RateA temporary discounted nightly price used to stimulate bookings during a specific period or for a targeted purpose.
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Rate ParityA policy or contractual requirement that vacation rental pricing remains consistent across all booking platforms.Rate PlanA named pricing configuration that defines nightly rates, minimum stays, and fees for specific time periods or conditions.Rate ShoppingThe practice of monitoring competitor pricing to inform rate decisions and maintain competitive positioning in a market.Repeat GuestA traveler who books the same property or with the same host or management company more than once.Revenue ManagementThe strategic use of analytics and pricing to maximize rental income from available inventory.Revenue SplitA revenue split defines how booking income is divided between the property owner and the management company, typically set by the manager's fee percentage.Review ManagementReview management is the systematic process of monitoring, responding to, and leveraging guest reviews to protect a vacation rental's reputation and improve booking conversion.
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Schedule EThe US IRS form, filed with Form 1040, used to report income and expenses from rental real estate and certain other passive activities.Seasonal PricingA pricing strategy that adjusts nightly rates based on predictable demand patterns throughout the year.Shoulder SeasonThe transition period between peak and off-season when demand and pricing are moderate.Smart PricingSmart pricing is automated rate-setting technology that adjusts vacation rental nightly rates in real time based on demand signals, market data, and booking patterns.Social ProofSocial proof in vacation rentals refers to evidence from past guests — reviews, ratings, photos, and endorsements — that builds trust and confidence in prospective bookers.STR LoanAn STR loan is any financing used to purchase or refinance a property operated as a short-term rental, and may be conventional, DSCR, or portfolio-based.SubleaseAn arrangement in which an existing tenant rents out all or part of a leased property to another occupant while remaining bound by the original lease with the landlord.
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