Entering the world of short-term rentals and property management can be fascinating but also a bit overwhelming, especially when faced with numerous technical terms and complex concepts. To bring order to this sea of words and provide a clear guide for newcomers, we have created an essential glossary for property managers.
Here, we will outline the terms we consider essential for successfully starting to explore this fascinating world:
- Cedolare Secca
The “Cedolare Secca” regime is a tax option that simplifies the taxation of short-term rentals. This system replaces IRPEF (personal income tax) and related surcharges with a flat tax calculated on the property’s rental income. This simplification can be advantageous for owners of properties used for short-term rentals.
- Home Launch
The Home Launch is a crucial process that spans from signing the contract to the arrival of the first guest. It includes activities such as inspecting the apartment and its supplies, creating listings on online platforms, and producing captivating photo shoots to attract potential guests.
- Lead Time
Lead Time refers to the time interval between a customer’s booking and their actual arrival at the property. This concept is fundamental for operationalplanning and managing reservations.
- Short-Term Rental
Short-term rentals refer to renting properties for periods shorter than 30 days. This type of rental can be categorized in two ways: Vacation Home (CAV) and Tourist Rental (LT). A Vacation Home is a non-hotel accommodation, while a Tourist Rental involves making a property available without additional services.
- Online Travel Agency (OTA)
OTAs are online platforms that connect guests with accommodation facilities. These digital agencies provide up-to-date information on availability and rates of accommodations.
- Dynamic Pricing
Dynamic pricing is a strategy that involves updating rates in real-time. This approach is based on factors such as market demand, seasonal events, and other elements that may influence prices.
- Property Management Software (PMS)
A PMS is software that facilitates the management of real estate properties. It includes features such as booking management, check-in/check-out, rate management, maintenance, and financial reporting.
- Property Manager (PM)
The Property Manager is the key figure in managing short-term rental properties. This person coordinates all activities related to the rental, from launching the listing to managing cleaning and customer service.
- Rent-to-Rent
Rent-to-Rent is an activity where a property is rented and then sublet to others. This model involves a Management Mandate Without Representation, meaning a contract where the rental manager handles daily operations but does not legally represent the property owner. The manager earns from the difference between the rent paid to the owner and the higher rates charged to subtenants.
- RevPAR
RevPAR is a financial metric used in the hospitality industry to evaluate the performance of accommodation facilities. It represents the average revenue generated per available room.
- LEAF Management
LEAF Management encompasses four crucial aspects of property management: Legal, Economic, Administrative, and Fiscal. These areas cover all the key components of property administration and management.
Short-term rentals and property management can seem complex due to the numerous technical terms involved. This glossary provides clarity and guidance for those venturing into this field. With this solid foundation, you will feel more confident in tackling the challenges and opportunities of this ever-evolving industry.
