Expenses associated with providing essential amenities and consumables for guests, such as toiletries, linens, cleaning supplies, and welcome gifts.
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Glossary Term: Operating Expenses
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A measure of the profitability of a short-term rental property, calculated by subtracting operating expenses from revenue.
The net amount of cash generated by a short-term rental property after deducting all operating expenses, including mortgage payments, utilities, and management fees.
Evaluating the financial viability of purchasing a property for short-term rental purposes, considering factors like property prices, rental demand, operating expenses, and potential return on investment (ROI).
Expenses that remain relatively constant regardless of occupancy rates, such as mortgages, property taxes, and insurance. Understanding fixed costs helps hosts determine profitability.
Ongoing expenses incurred in the operation of a business, regardless of the level of sales or production. For short-term rentals, this includes costs like mortgage payments, utilities, property management fees, and cleaning supplies.