STR Glossary

A regulation limiting the total number of nights per year a property can be rented short-term. Common caps are 90, 120, or 180 nights. Designed to encourage long-term housing while allowing occasional STRs.

A secondary housing unit on a single-family lot, such as a garage apartment, basement suite, or backyard cottage (ADU). Often allowed for STRs when the primary residence is owner-occupied. Also called in-law unit or granny flat.

The advance time period when guests can book a property. Strategic hosts optimize their booking window based on property type: urban properties (3-6 months), vacation homes (9-12 months), last-minute deals (0-14 days).

A general permit required by some cities to operate any commercial activity, including short-term rentals. Separate from STR-specific permits. Annual fees range from $50-$500. Required for tax reporting and legal operation.

A regulatory limit on the total number of short-term rental permits issued in a jurisdiction. Cities use caps (e.g., 1% of housing units) to control STR growth and maintain long-term housing supply. Waitlists are common in capped markets.

A host managing multiple properties or not residing in the rental unit. Subject to stricter regulations than owner-occupied STRs in many cities. May require business licenses, commercial insurance, and higher taxes.

A partnership where one person manages a property on behalf of the owner, handling guest communication, bookings, cleaning, and maintenance. Co-hosts typically earn 10-25% of revenue. Useful for absentee owners or those lacking time.

A pricing strategy that adjusts nightly rates automatically based on demand, seasonality, local events, competitor pricing, and booking patterns. Successful hosts use dynamic pricing tools to increase revenue by 20-40% compared to fixed pricing.

A guest who books under one name but allows unauthorized additional guests to stay. Violates house rules and insurance policies. Prevented through guest verification, security deposits, and occupancy monitoring systems.

The process of evaluating potential guests before accepting bookings. Includes reviewing profiles, past reviews, ID verification, and communication assessment. Reduces property damage risk by 60% and prevents party bookings.

A permit required by many cities for operating short-term rentals legally. Hosts must apply through their local government, meet specific requirements (zoning, safety, taxes), and renew annually. Violations can result in fines up to $10,000 in some jurisdictions.

A booking setting that allows guests to confirm reservations immediately without host approval. Increases booking conversion by 30% but requires strict guest verification and clear house rules to prevent problem bookings.

A regulation or host policy requiring guests to book for a minimum number of consecutive nights. Common requirements range from 2-30 nights depending on jurisdiction and season. Helps reduce noise complaints and turnover costs.

A privacy-safe sensor that detects decibel levels without recording conversations. Required in some jurisdictions to prevent parties and neighbor complaints. Alerts hosts when noise exceeds thresholds (typically 65-75 dB).

A tax levied by local governments on short-term lodging accommodations, typically collected from guests and remitted by hosts. Also known as hotel tax, lodging tax, or transient occupancy tax (TOT). Rates vary by jurisdiction, ranging from 3% to 18% of the nightly rate.

The percentage of available nights that a property is booked over a given period. Calculated as (booked nights / available nights) × 100. Industry average is 48-65% depending on market and property type. Key metric for revenue optimization.

A property where the owner lives full-time and rents out rooms or the entire unit when away. Receives preferential treatment in many STR regulations with fewer restrictions and lower fees compared to non-owner-occupied properties.

A regulation requiring hosts to only rent out their primary dwelling where they live for at least 6-9 months per year. Designed to prevent investor-owned properties from dominating the rental market. Enforcement includes residency verification and utility bill checks.

A host earning significant income from multiple properties or full-time STR management. Typically manages 3+ properties, uses dynamic pricing tools, outsources cleaning, and maintains 90%+ occupancy rates. Average annual revenue: $75,000-$200,000.

A unique identifier issued by local governments to legally operating short-term rentals. Must be displayed prominently on all listing platforms. Enables enforcement and tax collection. Fines for operating without registration range from $500-$5,000 per violation.

Revenue Per Available Room - a key performance metric calculated as (total revenue / total available nights) or (average nightly rate × occupancy rate). Industry benchmark is $75-$150 depending on market. Used to compare property performance.

Geographic areas where short-term rentals are prohibited or heavily restricted by zoning laws. Common in historic districts, residential neighborhoods, and near schools. Violations result in cease-and-desist orders and fines.

Official authorization from local government to operate a short-term rental property. Application typically requires proof of ownership, zoning compliance, safety inspections, insurance, and tax registration. Annual renewal fees range from $50-$1,500.

An automated pricing algorithm used by platforms like Airbnb that adjusts nightly rates based on market demand, competitor pricing, and booking patterns. Hosts using smart pricing see 10-25% revenue increase but should set minimum price floors.

An Airbnb status achieved by maintaining a 4.8+ rating, 90%+ response rate, <1% cancellation rate, and 10+ stays per year. Superhosts earn 20-30% more revenue through increased visibility, badge credibility, and priority support.

A mandatory evaluation by local fire or building departments to verify STR compliance with safety codes. Checks smoke detectors, carbon monoxide alarms, fire extinguishers, egress routes, and electrical systems. Required for permit approval.

Predictable fluctuations in demand throughout the year based on weather, holidays, and local events. Hosts adjust pricing (50-200% variation), minimum stays, and marketing strategies by season. Peak season rates average 2-3x off-season.

A tax on short-term lodging stays (typically under 30 days) imposed by local governments. Rates range from 3-18% and must be collected from guests and remitted monthly or quarterly. Also called TOT, hotel tax, or occupancy tax.

The total expense of preparing a property between guest stays, including cleaning ($80-$200), laundry, restocking supplies, inspection, and maintenance. Averages 15-25% of booking revenue. Minimized through longer minimum stays.

Adherence to local land use regulations that determine where STRs are permitted. Properties must be in zones allowing commercial or mixed-use activity. Residential-only zones typically prohibit STRs. Verification required during permit application.