The financial analysis of a single short-term rental unit, considering factors such as revenue, expenses, occupancy rates, and return on investment, to determine its profitability.
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Glossary Term: Financial Performance
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A measure of the profitability of a short-term rental property, calculated by subtracting operating expenses from revenue.
The total revenue generated from short-term rental bookings before deducting any expenses such as cleaning fees, platform commissions, or management fees.
The total income generated from short-term rental bookings, including nightly rates, cleaning fees, extra guest charges, and other potential revenue streams, minus expenses such as platform fees, cleaning costs, and property maintenance.
A measure of the profitability of a short-term rental property, calculated as the annual rental income divided by the property value, expressed as a percentage.
Visual representations of key performance indicators (KPIs) within QuickBooks, providing insights into the financial health and performance of a short-term rental business.
Specific metrics used within QuickBooks to track the financial health and performance of a short-term rental business, such as Occupancy Rate, Average Daily Rate (ADR), and Revenue Per Available Rental (RevPAR).
The net amount of cash generated by a short-term rental property after deducting all operating expenses, including mortgage payments, utilities, and management fees.
The profitability of a short-term rental, calculated by subtracting expenses (cleaning, fees, etc.) from rental income.
The financial return generated by a short-term rental property, calculated by dividing the net rental income by the property’s value or investment cost.
A measure of a short-term rental property’s profitability, calculated by subtracting operating expenses from revenue, excluding debt service and income taxes.
A metric used to evaluate the profitability of a short-term rental investment, calculated as the net income generated divided by the total investment cost, expressed as a percentage.