“Airbnb” Glossary: Understanding STR Industry Lingo
When we talk about short-term vacation rentals—whether in town meetings, economic development discussions, or community planning—it's essential to speak the same language. Industry terminology can often feel like a foreign dialect, especially to those outside the short-term rental (STR) world. Misunderstandings about terms like “airbnb,” “rental arbitrage,” or “occupancy rate” can derail otherwise productive conversations. This glossary is designed to demystify the lingo, making it easier for everyone to engage in informed, constructive discussions about tourism, rental housing, and STR regulation.
ADR (Average Daily Rate): The average income earned per booked night, calculated by dividing total revenue by the number of nights booked.
Affordable Housing: As defined by the U.S. Department of Housing and Urban Development (HUD), housing is considered "affordable" when a household spends no more than 30% of its gross income on housing costs, including utilities. Affordability is relative to one’s household income. The median household income in Vermont was ~$78,000 in 2023.
Amenity: A feature that enhances the guest's stay—e.g., hot tub, fast Wi-Fi, pet-friendly setup, firepit, etc.
Available Housing: The total number of homes or units on the market or vacant, whether for rent or sale. A key metric in local housing discussions. A 5% vacancy rate is considered to indicate a “healthy” housing market.
Bed and Breakfast: A small lodging establishment that offers overnight accommodations and breakfast to multiple guests from different households or booking parties. Often run by the owner. Requires a license by the State of Vermont.
Booking: The process of reserving a vacation rental property for a specific set of dates. It becomes a formal agreement once confirmed by both the guest and host.
Booking Window: The amount of time between when a guest makes a reservation and their actual check-in date. A longer booking window indicates guests are planning further in advance.
Channel Manager: A tool or software that helps property managers list their rentals across multiple OTAs without double-booking (e.g, Lodgify, Guesty, Hostfully, Hospitable, OwnerRez, etc.)
Cleaning Fee: A separate fee charged to guests to cover cleaning costs between stays. Varies by size and service.
Co-Hosting: When a second person helps the primary host manage the property—handling messages, cleanings, check-ins, etc.
Damage Waiver: A small fee guests pay in lieu of a traditional security deposit, offering limited coverage for accidental damage.
Direct Booking: When a guest books a rental directly through the owner’s or manager’s website, bypassing OTAs and saving on platform fees.
Dynamic Pricing: A pricing strategy that automatically adjusts nightly rates based on demand, seasonality, local events, and competition.
Guest Experience: The overall impression and satisfaction of a guest, shaped by cleanliness, communication, amenities, and ease of stay.
Guest Spending: The total amount of money spent by guests during their stay, including accommodation, dining, shopping, and local experiences and services. An important metric for evaluating tourism’s economic impact in a region. The average guest spends $200 per day outside their accommodation.
Host: An individual who owns or manages a short-term rental property and is responsible for guest communication, property maintenance, and providing a quality guest experience. Hosts may be individuals or part of a professional team of property managers.
House Manual / Welcome Book: A printed or digital guide provided to guests with property details, check-in instructions, house rules, and local tips.
Length of Stay (LOS): The number of nights a guest stays during a reservation. Important for tracking performance, guest trends, and optimizing revenue.
Local Regulations / Zoning: Legal rules that govern where STRs are allowed to operate and what requirements must be met (like permits, taxes, or limits).
Lodging Establishment: Any property that provides short-term accommodations to guests where at least 3 rental units are available for rent on one property, including hotels, motels, inns, bed and breakfasts—but excluding STRs.
Long-Term Rental: Typically refers to an unfurnished rental property leased for at least 12 months, typically with a lease agreement. Often contrasted with short-term rentals in housing policy discussions, however much overlap exists in reality, as the legal definition for a long-term rental includes any rental period longer than 29 days.
Mid-Term Rental: Typically refers to a furnished rental for 1 to a few months, often catering to traveling professionals, remote workers, or people relocating. Often overlaps with STR use.
Minimum Stay: The shortest number of nights a guest can book. Often adjusted based on season, demand, or local regulations.
Noise Monitoring: Devices installed to monitor decibel levels and prevent party-related issues, while protecting guest privacy.
Occupancy Rate: The percentage of time a property is booked versus available. A key performance metric for STRs.
OTA (Online Travel Agency): Platforms where travelers book accommodations. Examples: Airbnb, Vrbo, Booking.com, Expedia.
Owner-Occupied Rental: A rental where the property owner lives on-site or in a part of the home, while renting out a separate space to guests.
PMS (Property Management System): Software that helps manage bookings, guest communication, calendars, housekeeping, and more.
Property Manager: A professional or company hired to oversee the day-to-day operations of a short-term rental property. This includes handling bookings, guest communication, maintenance, pricing strategies, and compliance with local regulations.
Rental Arbitrage: A business model where someone rents a property long-term and then re-rents it as a short-term rental (typically with landlord permission), profiting from the nightly rate difference. This allows people to operate STRs without owning the property.
Rental Unit: A dwelling or portion of a dwelling offered for rent, either as a long-term lease or short-term accommodation.
Residential Activity: Non-commercial, routine uses of a property for day-to-day living activities. A term often referenced in zoning discussions to differentiate between personal uses and business activities.
RevPAR (Revenue Per Available Rental): A metric that combines ADR and occupancy to evaluate property performance. It’s calculated by multiplying ADR by occupancy rate.
Seasonal Housing: Housing primarily used during specific times of the year (e.g., ski season, summer tourism) and often vacant off-season. Often overlaps with STR use.
Second Home: A property owned in addition to a primary residence, typically used for vacations or as an investment. Often overlaps with STR use. In Vermont, ~17% of the housing is “seasonally/occassionaly used” while 3% of the housing is available as a short-term rental.
Service Provider: Any local professional or business that offers services supporting STRs—such as cleaners, caterers, interior designers, photographers, laundry services, tax advisors, and more. These providers are often essential to smooth operations and high guest satisfaction.
STR (Short-Term Rental): A rental property rented out for fewer than 30 consecutive nights. Also referred to as vacation rentals.
STR Compliance Software: Digital tools used by property managers or municipalities to track STR operations, ensure regulatory compliance, collect taxes, and monitor data like occupancy or location. These systems help streamline oversight and enforcement. (e.g., GovOS, Deckard Technologies, Granicus, etc.)
Superhost / Premier Host: A status given by platforms like Airbnb or Vrbo to hosts with excellent reviews, high response rates, and consistent performance.
Touchless Check-In: A system where guests can check in without meeting the host—usually using smart locks or keypads.
Turnover: The process of cleaning, resetting, and preparing a rental for the next guest between bookings.
Vacation Home: A property primarily used for recreation, holidays, or seasonal getaways. May be rented out as a STR when not in use by the owner.
Vacation Rental: A furnished property rented to guests for short-term stays, typically for leisure or tourism purposes, also called a short-term rental.
Vacation Rental Management: The professional operation and oversight of vacation rentals on behalf of a property owner, which may include marketing, booking, guest communication, maintenance, compliance, and revenue optimization.
By becoming fluent in the language of short-term rentals, community members, policymakers, and industry professionals alike can have more meaningful, informed, and solution-oriented discussions. When everyone understands the terms being used, it helps ensure that decisions and debates about STRs are grounded in clarity rather than confusion.
Use this glossary as a shared foundation on which to have productive and meaningful conversations.