Short-term rental FAQ
What is a short-term rental, and how is it different from a long-term rental?
A short-term rental (STR) is a furnished residential property rented to guests for stays of fewer than 30 consecutive nights, priced per night and managed by the operator, and it is usually regulated as a distinct activity from a standard long-term tenancy.
What is a channel manager in short-term rentals, and why do property managers use one?
A channel manager is software that keeps a rental's calendar, rates and availability in sync across Airbnb, Booking.com, Vrbo and a direct site from one dashboard, so managers can run multi-platform inventory without double bookings.
What does OTA mean in short-term rentals, and which OTAs matter most?
OTA stands for Online Travel Agency: a booking platform that lists inventory from many hosts, takes the reservation and charges a commission. For short-term rentals the OTAs that drive most third-party demand are Airbnb, Booking.com and Vrbo, with Expedia and Google Vacation Rentals relevant in some markets.
What are ADR, occupancy and RevPAR in short-term rentals, and how are they calculated?
ADR (Average Daily Rate) is accommodation revenue divided by booked nights. Occupancy is booked nights divided by available nights. RevPAR (Revenue Per Available Rental) is accommodation revenue divided by available nights, or ADR multiplied by occupancy.
What is a direct booking in vacation rentals, and why do hosts want more of them?
A direct booking is a reservation made through the operator's own website or channels instead of a third-party OTA. Hosts want more of them to avoid OTA commission, own the guest relationship and reduce exposure to platform policy changes.
How are short-term rentals regulated, and what rules typically apply?
Short-term rental regulation typically covers registration or permitting, licensing conditions, annual night caps and tourist or occupancy taxes, with the specific thresholds set city by city and revised often.
What is dynamic pricing for short-term rentals, and how does it work?
Dynamic pricing adjusts a rental's nightly rate continuously in response to demand signals such as booking pace, competitor rates, lead time, day of week, seasonality and local events, aiming to lift ADR when demand is strong and protect occupancy when it is soft.
What is The Nightly Rate, and who is it for?
The Nightly Rate is a daily news roundup of the short-term and vacation rental industry, written for professional operators, property managers, OTA and PMS product teams, and tourism policy staff.