Estimating future rental income based on historical data, market trends, and anticipated occupancy rates to inform financial planning and investment decisions.
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Glossary Term: Investment Strategy
14 posts
A comprehensive plan that outlines all aspects of managing a vacation rental business. This includes setting financial goals, developing marketing strategies, establishing operational procedures, and providing excellent customer service.
A strategy where someone rents a property long-term and then sublets it as a short-term rental for a higher price.
A business model where individuals rent properties long-term and then sublet them as short-term rentals on platforms like Airbnb and VRBO, aiming to profit from the difference in rental rates.
Research conducted to understand the performance of the short-term rental market in a specific location, including occupancy rates, average daily rates, and seasonal trends.
Assessing the potential risks and rewards associated with various aspects of short-term rental management, such as pricing strategies, property investments, and guest screening.
Investment decisions in short-term rentals that consider the growing demand for remote work-friendly accommodations, prioritizing properties with features that appeal to this market.
Making data-driven decisions about property acquisitions and investments based on the booking patterns, preferences, and profitability of the defined target market.
Managing a variety of short-term rental properties with different locations, sizes, or price points to mitigate risks and potentially increase revenue.
Defining specific and measurable financial targets for a short-term rental property, such as desired occupancy rate or net income.
A hands-off approach to short-term rental investing where property management and operations are outsourced to a third-party company.
The process of converting a long-term rental property into a potentially more profitable short-term rental.