Glossary

  "Average Daily Rate" (ADR) is a key metric used in the hospitality industry to calculate the average price charged for a property over a specific period   It is determined by dividing the total property revenue by the number of nights occupied during that time; essentially showing the average income generated per property per day. "Owner" Read More

Annual Gross Revenue by Year Includes rent & surcharges (cleaning fees, pet fees, admin fees, etc.) Does not include Lodging/Occupancy Taxes. Helpful to visualize how revenue is changing year-by-year

Percentage of Annual Revenue received from different booking sites.

  The Booking Window is the time between the date a guest books the property and the arrival date. In other words, how far in advance they booked the property. This tends to change seasonally. For example, holidays and peak seasons will likely book with a higher booking window -- i.e. further in advance.   Read More

CoC ROI means "Cash-on-Cash Return On Investment and is a cash-flow measurement.  CoC ROI is a measure of the cash profit received for the actual cash invested, expressed as a percentage.  Purchase price, loans, and long-term capital gains after selling a property are all irrelevant. It simply means, "What am I making annually, compared to Read More

Equity is the value of the property less whatever you owe on the mortgage. If you sold the property this is what you'd get, less sales commissions and other expenses.

We try and determine your property's current market value from Zillow. This doesn't always work, and Zillow's estimate of value could be way off. Who knows? Feel free to click on the value and change it to whatever you think is accurate. Having an accurate estimated value let's us calculate potential capital gains and tax Read More

Total income from all sources, prior to any expenses, less any refunds.

Lodging Taxes (a.k.a. Occupancy Tax, Hotel Tax, Room Tax) are taxes levied by a state or local government on Hotels and Short Term Rentals. In some cases, listing sites charge guests directly and submit the taxes to the tax authority. In other cases, the host (you) is required to collect the taxes and submit them. Read More

  Enter all Listing Sites for which you collect Lodging/Occupancy taxes from guests and remit them periodically to the tax authorities. Do not include listing sites that collect taxes from the guest directly. This varies widely depending on locale and whether you utilize professional hosting tools (a.k.a. "API Connected").   Airbnb and Vrbo often (but Read More

Loan-To-Value. This is the percentage of the property's value that is mortgaged. It is inversely proportional to Equity. Example: Your property is worth 600,000 and your loan balance is currently 450,000. Your LTV is 450 / 600 which is 75% Lenders look very closely at these numbers. The higher the number, the less equity you Read More

Monthly Gross Revenue Includes rent & surcharges (cleaning fees, pet fees, admin fees, etc.) Does not include Lodging/Occupancy Taxes. Helps to visualize seasonal revenue. Use it to set prices higher during peak seasons, and lower them during low seasons to keep the property occupied.

Percentage of Monthly Revenue received from different bookings sites.   Broken down by month to show seasonal booking site trends.

Total Income minus Total Expenses. This is what you put in your pocket (or left in the bank) this year.

In this context, Nonreportable Revenue means revenue on which you did not collect Lodging/Occupancy Tax on behalf of a tax authority. It doesn't mean the guest was not taxed, it means you did not collect the tax and do not need to submit it to the tax authorities. Typically, this means the listing site collected the Read More

  Occupancy is the number of nights rented divided by the number of nights available in the period being measured. For monthly analysis, we assume all months have 31 days.   Owner or maintenance blocks are not considered rented nor available   Example: A property rented 15 nights in April calculates as follows: 15 / Read More

This is the "on paper" estimate of your capital gains if you sold the property today. It is calculated as current market value less what you paid for it. It does not consider sales commissions, expenses, or personal tax liability (yet!)

In this context, Reportable Revenue means revenue on which you collected Lodging/Occupancy Tax from a guest on behalf of a tax authority. When you submit the tax you collected to the tax authorities, you are reporting your revenue, and the amount you pay to them will be based on this number and the local tax Read More

Total expenses incurred in operating the property. This includes things like utilities, mortgage payments, repairs, property taxes, insurance, and more. It does NOT include depreciation. If you are obtaining expense numbers from tax documents that include depreciation as an expense, this should be subtracted from the expense total.

The total amount of out-of-pocket expenses incurred in obtaining the property. It includes the down payment, deposit/earnest money, closing costs, loan points & fees, government recording taxes, appraisal, inspection, etc. It does NOT include pre-paid expenses shown on closing documents such as pre-paid interest or property taxes. Those are first-year expenses that you're just paying Read More

PURCHASE information can be obtained from the closing statement you got when you purchased the property, or from your taxes or accountant. EXPENSE information can be obtained from Quickbooks, the P&L statement you get from your accountant, or possibly Schedule E on your tax returns. MORTGAGE information can be obtained from any Mortgage statement.

PURCHASE and EXPENSE information is required to calculate important performance metrics such as: COC ROI (Cash on Cash ROI. Your profit divided by your total out-of-pocket investment. The most important metric you should know) Cap Rate (Net Operating Income divided by current market value) Expense ratio (The percentage of gross income that is consumed by Read More