A portion of the total rental amount which the guest pays in advance of their stay.
An extra amount guests pay an owner or property complex in order to access certain amenities, such as tennis courts, golf, beach chairs, etc.
Defines the terms and conditions of payment schedules, cancellations and damage deposits.
Also known as damage deposit. This is a refundable sum of money (typically around $200 or 10% of the rental rate) which a property owner collects from their guests in addition to the total booking amount. The deposit guarantees that guests return the property in the same condition they found it. In case of damages, […]
A signed and sealed document between you and a selling agent that notes that the agent cannot show anyone else a specific property until you confirm that you are no longer interested in purchasing it.
Typically a sum of money the guest must pay if they cancel a reservation after the cancellation deadline has passed.
The set of rules which dictate what happens if a guest cancels their reservation within a certain notice period.
A commission that a third-party distributor charges a property owner for listing their vacation rental on their website.
Choosing a property that meets most of your vacation rental goals, but may not be exactly what you wanted.
Any additional fee that is unique to a property. For example, most properties will have a cleaning fee, but only those with hot tubs can charge a “hot tub cleaning fee”.
Sometimes called a breakage deposit or security deposit. This is a refundable sum of money (typically around $200 or 10% of the rental rate) which a property owner collects from their guests in addition to the total booking amount. The deposit guarantees that guests return the property in the same condition they found it. In case of damages, the property owner will make appropriate deductions from the damage deposit.
Damage protection insurance
A product that the traveler purchases, usually when paying for their booking. This one-off insurance cost is around $50 to $100 per stay and is bought instead of leaving a damage deposit.
A written and filed right to have complete access to a certain property. For example, if you purchase property near a lake but not on the shorefront, your house might have deeded access through the neighboring land to get to the lake.
The act of returning the amount that renters have paid for the damage deposit (provided everything has been left in the same condition).
Partial payment guest makes at the time of booking in order to secure a reservation, usually a percentage of the total amount.
The lawful expulsion of an occupant from any property.
A predetermined plan that takes into account everybody’s interest in a joint ownership arrangement. An exit strategy gives a business owner a way to reduce or liquidate their stake in a business and, if it’s successful, make a substantial profit.
Fair Housing Act
The 1968 Fair Housing Act is a federal act in the United States intended to protect the buyer or renter of a dwelling from seller or landlord discrimination based on race, color, religion, sex, handicap, familial status or national origin.
Specific insurance coverage against property loss from flooding. Flood insurance is a requirement in federally designated flood areas.
Additional guest charges beyond the initial price. For example, a guest fee can refer to a service fee, cleaning fee, pet fee or extra person fees.
A form of property insurance that covers losses and damages to an individual’s house and to assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
Typically lower rates that have special booking conditions. For example, guests will still have to pay the full price if they cancel, make changes or don’t show up. In other words, they will not receive a refund in the event of cancellation.
Payment Card Industry compliance is a set of standards and guidelines for companies to manage and secure credit card related personal data during and after financial transactions. PCI compliance is required by all card brands.
A sum of money beyond the total rental rate which covers the stay of any pet and costs associated with it (i.e. cleaning). Pet fees are non-refundable, but pet deposits should be refunded if no damage has incurred during the stay.
An extra service charge vacation rental owners and property managers can charge to guests who wish to heat the property pool or hot tub.
Property management agreement
A legally binding document between a property manager and property owner which clarifies in writing any arrangements that have been made between the two parties, including house rules and repercussions if broken.
A legal agreement between a property and an OTA, providing the same rates for the same room on all the distribution channels – including the property website.
A reservation or booking that qualifies for a refund under specific circumstances.
Location-specific restrictions that are applicable to short-term rentals with respect to the total amount of days they rent out each year and other requirements.
Also known as “Preparation Time Before Arrival (PTBA)”. The minimum number of days in advance a booking has to be made, e.g minimum of two days before arrival. This allows property managers to gain better control of last-minute bookings and gives them time to prepare for the guest’s arrival.
An amount of money (usually equivalent to one night’s stay) collected at the time of booking which validates the rental contract. The purpose of the advance deposit is to guarantee a reservation, and the full amount is applied to the guest’s bill upon check-out.
Most states in the US require people who rent out their vacation homes to charge and collect state sales or lodging taxes on the income they earn from these short-term rentals. These taxes are collected by the state, county and/or city, and like all sales taxes, they are paid by the guest, not the host.