Estimating future rental income based on historical data, market trends, and anticipated occupancy rates to inform financial planning and investment decisions.
Menu
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.
Making data-driven decisions about property acquisitions and investments based on the booking patterns, preferences, and profitability of the defined target market.
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.
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.