If you work in the Vacation Rental Industry then you know that it’s extremely important to understand the terminology that is used and knowing when to use it in the right context. Here are ten key terms to know if you are a property manager or homeowner using them in your day-to-day tasks and among industry professionals.
Average Daily Rate (ADR): If you are looking to calculate the average rate per night for a property for a particular period of time then you want to calculate the ADR by taking the total revenue that came in for the rental and dividing it by the total amount of nights the property has been sold for.
Application Programming Interface (API): When using a software application for example, CiiRUS Vacation Rental Software an API is used to collect the data that is inputted into the system to then transfer it over to a property management companies site in which it is then received and transferred back over to the software if the data is correct.
Channel Manager: The Channel Manager is used to sync the pricing of a property along with the details of vacation rental properties, hotel rooms, and so forth to distribute through all channels so when those traveling and in need of accommodations can book from the sites platform.
Homeowners Insurance: If you are a homeowner or a property manager it is detrimental to have a property insurance policy that includes both personal liability and hazard insurance in case of the loss or damage of personal property or the foundation of the home. For example, personal liability insurance covers any property damage caused by the guest or bodily injuries caused to the guest while hazard insurance covers damage in the case of a fire, natural disaster, flood, and more.
Key Performance Indicators (KPI): If you need to determine how effective a rental property is then KPI’s would be the best way to determine the numbers for that rental.
Net Rates: Net rates are important as they are the total price amount that is received by an owner of a property however the commissions are deducted.
Payment Processor: A payment processor is a third party or company that a merchant uses to manage payment transactions that are typically processed with a debit or credit card.
PCI Compliance: A company that is Payment Card Industry Compliant must follow particular security guidelines in order to keep card information confidential when any transaction is made.
Property Management System (PMS): A Property Management System is used to assist with operating the management companies properties, calendars, communications among colleagues and clients, bookings, and much more for all daily operations.
VRM Commission: A Vacation Rental Management Commission is taken when a vacation rental management company charges a fee to the owner of the rental property in which a percentage is taken from the revenue amount received.