Refers to the financial rewards and benefits associated with owning and renting out a successful vacation rental property. This can include rental income, property appreciation, and tax advantages.
Menu
Glossary Term: Return on Investment
9 posts
The financial performance of a short-term rental business, measured by factors like occupancy rates, average daily rates, and operating expenses.
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.
Investing in property improvements and amenities that enhance the guest experience, increase rental value, and attract a higher caliber of guests.
The process of calculating the profitability of a short-term rental property by measuring the financial returns (rental income, appreciation) against the investment costs (mortgage, maintenance, fees).
Investing heavily in marketing channels that fail to reach the target audience or generate a positive return on investment, leading to wasted resources and minimal impact.
Evaluating the financial viability of a property as a short-term rental investment, considering factors like occupancy rates, expenses, and potential income.
A significant upgrade or renovation to a property that increases its value, lifespan, or functionality.
A measure of the profitability of a rental property, calculated by dividing the annual net income by the total investment and expressing the result as a percentage.