Vacation Rental Glossary & Definitions
Explore Chalet's comprehensive glossary of vacation rental terms, vacation rental business definitions, and industry jargon. Find clear explanations for key terminology used throughout the Chalet platform and the short-term rental industry.
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1 term1031 Exchange
A tax strategy that allows investors to defer capital gains taxes by reinvesting proceeds from a property sale into another like-kind property.
A
3 termsADR (Average Daily Rate)
The average income earned per occupied room per day.
Amenity Fees
Additional charges for extra features such as pools, gyms, or hot tubs.
Annual Revenue
Total rental income earned by a property in one year.
B
2 termsBooking Lead Time
The average number of days between when a guest books and their check-in date.
Booking Window
The period in which guests typically make reservations relative to their stay date.
C
6 termsCap Rate (Capitalization Rate)
A measure of return based on net operating income divided by property value.
Channel Manager
A tool that syncs availability, rates, and bookings across multiple platforms (Airbnb, Vrbo, Booking.com, etc.).
Cleaning Fee
A one-time charge to cover the cost of cleaning after a guest's stay.
Co-Hosting
When a property owner partners with another person or company to help manage an Airbnb.
Concierge Services
Extra services offered to guests, such as tours, reservations, or personal shopping.
Cost Segregation
A tax strategy that accelerates depreciation deductions by separating building components.
D
4 termsDirect Bookings
Reservations made through an owner's website or system, avoiding platform fees.
Double Booking
When two guests reserve the same dates due to calendar syncing errors.
DSCR Loan (Debt Service Coverage Ratio Loan)
A financing option where lenders focus on rental income vs. debt payments.
Dynamic Pricing
Adjusting nightly rates based on demand, seasonality, and local events.
E
2 termsEarly Check-In
Allowing guests to arrive before the standard check-in time.
Exit Cleaning
A deep cleaning performed at the end of a guest's stay.
F
1 termFurnished Finder
A platform connecting hosts with mid-term renters such as traveling nurses.
G
3 termsGDS (Global Distribution System)
A travel reservation system used by hotels and STR managers to reach travel agents and booking platforms.
Guest Experience
The overall impression and satisfaction level of a guest's stay.
Guest Screening
The process of evaluating potential guests to reduce risk of damage or fraud.
H
3 termsHigh Season
The busiest time of year when occupancy and rates are highest.
Host Guarantee
Airbnb's protection program covering certain damages by guests.
House Rules
Guidelines set by hosts that guests must follow.
I
1 termInstant Book
An Airbnb feature allowing guests to book without host approval.
K
1 termKeyless Entry
A digital lock system that allows guests to check in without physical keys.
L
2 termsLength of Stay (LOS)
The total number of nights a guest books.
Listing Optimization
Improving photos, descriptions, and pricing to increase bookings.
M
3 termsMarket Analysis
Evaluating STR performance metrics like occupancy, ADR, and RevPAR in a specific area.
Mid-Term Rental (MTR)
A furnished rental for 1–12 months, popular with traveling professionals.
Minimum Stay Requirement
The fewest nights a guest must book.
N
1 termNet Operating Income (NOI)
Income after operating expenses but before financing costs.
O
3 termsOccupancy Rate
The percentage of available nights that are booked.
OTA (Online Travel Agency)
Platforms like Airbnb, Vrbo, and Booking.com.
Overhead Costs
Recurring expenses like utilities, internet, insurance, and maintenance.
P
5 termsPeak Season Pricing
Higher rates charged during high-demand periods.
Performance Metrics
Key indicators like occupancy, ADR, RevPAR, and annual revenue.
Pet Fee
An additional charge for guests traveling with pets.
Property Manager
A person or company that handles day-to-day operations of a rental.
Property Tax
Annual taxes assessed on real estate by local governments.
R
4 termsRegulation Compliance
Ensuring STR operations follow local laws, permits, and zoning.
Repeat Guest
A customer who returns to book the same property.
Revenue Management
The process of setting and adjusting rates to maximize income.
RevPAR (Revenue Per Available Rental)
A metric calculated by multiplying ADR by occupancy rate.
S
4 termsSecurity Deposit
Money held to cover potential damages during a guest's stay.
Self-Check-In
A system where guests can check in without meeting the host.
Shoulder Season
The time between high and low seasons when demand is moderate.
Smart Home Technology
Devices like smart thermostats, locks, and cameras used in rentals.
T
1 termTurnover
The process of cleaning and preparing a property between guest stays.
U
1 termUpsell
Offering guests additional services or products to increase revenue.
V
2 termsVacancy Rate
The percentage of available nights that remain unbooked.
Vrbo
A major vacation rental platform, similar to Airbnb.
Y
1 termYield Management
Another term for revenue management, focused on maximizing income.
