An estimate of the potential rental income a short-term rental property can generate over a specific period, considering factors like occupancy rates, average daily rates, and expenses.
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Glossary Term: Investment Analysis
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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.
A financial metric used to evaluate the profitability of a short-term rental investment, considering income and expenses.
A metric used in real estate and short-term rental analysis, comparing the average purchase price of a property to the average annual rent it generates.
The mathematical formula used to determine the dwell ratio, dividing the average property purchase price by the average annual rental income.
The net amount of money generated by a short-term rental property after deducting all expenses, including mortgage payments, utilities, and management fees.
The realistic profit potential of a short-term rental property after accounting for all expenses, including mortgage payments, property taxes, utilities, and management fees.
The estimated market value of a short-term rental property as determined by a qualified appraiser, often used for financing, insurance, or investment purposes.
The percentage of time a short-term rental property is occupied by paying guests over the course of a year.