Glossary of Terms

An application programming interface (API) that enables developers and platforms to access and integrate Airbnb data and functionalities (such as listings, bookings, and reviews) into third-party applications.

An Airbnb Calculator is a tool for analyzing a property's short-term rental performance based on its neighborhood, city, or ZIP code. It provides insights into key metrics such as average nightly rates, occupancy rates, and overall market trends, helping investors assess the potential profitability of a property as an Airbnb rental.

An expense related to cleaning, maintaining, and preparing a property for new guests. This may be covered by the Airbnb host or passed on to the guest.

Comparable Airbnb listings in the same area used to evaluate performance metrics (such as average nightly rate, occupancy, and revenue) and to benchmark a property’s potential.

A collection of information from Airbnb, including listing details, pricing, occupancy rates, reviews, and other performance metrics. These help investors analyze market trends and rental potential.

An individual or entity that lists and rents out their property on Airbnb. Their responsibilities include managing bookings, communicating with guests, and maintaining the property.

A fee charged by Airbnb to the host for using the platform. This fee is usually a percentage of the booking subtotal and covers costs such as processing payments and providing support.

Features or services offered by a property (e.g., WiFi, pool, parking) that can enhance guest comfort and affect rental attractiveness and pricing.

The initial nightly rate set by the host before any adjustments from dynamic pricing algorithms. It acts as the foundation upon which market-driven fluctuations are applied.

A numerical rating (on a 1 to 100 scale) that indicates how friendly an area is to bicyclists based on factors like bike lanes, hills, and road connectivity.

A tool that automatically updates and aligns booking calendars across multiple platforms (such as Airbnb, Booking.com, Vrbo) to prevent double bookings and ensure availability is current.

Measures the rate of return on a rental property based on the income it generates relative to its purchase price or market value.

Cap rate = (Net operating income / Property value) x 100

The net amount of money generated from a rental property after all operating expenses, mortgage payments, taxes, and other costs have been deducted from gross rental income. It measures profitability and determines the sustainability of the investment.

Cash flow = Gross rental income - Total expenses*

*Total Expenses = Operating Expenses + Mortgage Payment

A metric that shows the annual return made on the cash invested in a property, measuring the cash income earned relative to the cash invested.

Cash on cash return = (Annual cash flow / Total cash invested) x 100

Centralizes and automates the management of property listings, reservations, and calendars across multiple booking channels. This reduces manual errors and ensures current availability.

Short for “comparables,” these are similar properties (in terms of size, location, and features) used to determine a property's market value or rental potential by comparing sale prices, rental incomes, or ADRs.

A statistical measure of criminal activity in a given area that can influence neighborhood availability and, by extension, property values and rental performance.

The cost charged to rent a property per day or night. This rate is a primary factor in calculating total rental income.

The date a property was first advertised on the MLS (Multiple Listing Service).

The total number of days a property has been actively listed on the market—from initial listing until sale. This metric can indicate market demand and pricing competitiveness.

A tool that adjusts rental rates in real time based on variables such as demand, seasonality, local events, and occupancy trends. Using this helps maximize revenue and maintain competitive pricing.

Indicates that a property is currently listed on the market and available for purchase.

Indicates that a lender has repossessed a property due to the previous owner’s failure to make mortgage payments, and is typically sold at a discount.

The total income generated from renting a property before deducting any expenses. This figure provides an overview of the income potential of the property.

An organization in a residential community that enforces rules, maintains common areas, and collects regular fees from property owners for community management and upkeep.

Refers to the estimated worth of a residential property. It represents the price a property is expected to sell for in the current market. It is determined by various factors, including location, property characteristics, comparable sales, market conditions, and upgrades and improvements.

An online service (such as Airbnb, Booking.com, or Vrbo) where property owners list their rentals and manage bookings.

The total number of available residential properties in a given market, affecting both purchase prices and rental rates.

A system that enables real estate brokers to display MLS property listings on their websites. This integration allows real estate professionals and investors to access comprehensive and up-to-date property data—including photos, descriptions, and pricing information—in a user-friendly format directly on their sites.

A tool that enables real estate professionals to create a fully customizable website and showcase MLS property listings through IDX (Internet Data Exchange) feeds, ensuring seamless property search and display for potential buyers.

A real estate asset purchased to generate income or capital appreciation rather than for personal use.

The Investment Valuation Score is Mashvisor’s proprietary metric that helps you assess the financial potential of a property as a rental investment. It is calculated based on several key factors, each with a weight that determines its impact on the total score:

These weights indicate the importance of each factor in the overall score calculation. A higher score suggests a strong investment opportunity, while a lower score means the property may not provide high returns.

Insurance coverage designed specifically for rental properties, protecting landlords against property damage, liability claims, loss of rental income, and other risks not covered by standard homeowner policies.

A tool used to track, organize, and follow up with potential buyers, ensuring timely communication and conversion of leads into sales.

A regulatory guideline indicates that the homeowner or host does not need to occupy the property for it to be legal as a short-term rental.

An advertisement of a property for sale on a real estate platform detailing key information, pricing, photos, and other pertinent details.

A rental agreement typically lasting 12 months or longer. This strategy often results in low turnover and more stable, predictable cash flow than short-term rentals.

Mashvisor’s tool helps investors identify promising real estate markets by analyzing factors like rental demand, pricing trends, and local economic factors.

A data-driven overview of rental demand in a selected area, showing the availability, average occupancy rates, and demand level for both Short-Term Rentals (STRs) and Long-Term Rentals (LTRs). Higher demand suggests better investment potential, while occupancy rates indicate how frequently properties are rented.

Mashvisor’s proprietary dashboard for real estate agents. Aside from aggregating key market and property data, it lets agents search for off-market properties and see essential ownership information. It also allows homeowners to list their properties without going through the MLS. This tool streamlines the process of identifying and contacting potential sellers or leads.

Mashmeter Score is a dynamic rating that helps investors assess a market’s potential for strong returns. It’s based on key real estate factors like price-to-rent ratio, cash-on-cash returns (STR & LTR), median price, rental demand, occupancy rates, and average daily rates. A higher score indicates a better investment opportunity.

The upper limit set for rental rates when using dynamic pricing. This cap ensures that the algorithm does not raise prices beyond a level that could reduce competitiveness or occupancy.

The middle value of all listing prices within a specific market. It is a key indicator of market trends and property values.

The lower limit set for rental rates within a dynamic pricing strategy. It ensures that the nightly rates do not drop so low as to undercut profitability or devalue the property.

A comprehensive, cooperative database that real estate brokers use to share information about properties for sale. It facilitates the dissemination of detailed property data—including listing prices, photos, descriptions, and key features—to enable collaboration among brokers and provide buyers with accurate, up-to-date market information.

A unique identifier assigned to a property within the MLS system. Real estate professionals use it to track and reference properties.

A loan used to finance a property’s purchase, where the property itself serves as collateral until the loan is repaid.

A tool that estimates monthly mortgage payments by considering the loan amount, interest rate, term (years), and sometimes property taxes and insurance.

A feature in the vacation rental software that consolidates calendars from multiple rental platforms into a single view, allowing hosts and property managers to monitor bookings and availability seamlessly.

Income generated by a rental property that directly depends on its occupancy rate. It is typically calculated by multiplying the nightly rate by the number of booked nights.

The percentage of available rental days booked over a specific period. It is a key indicator of a property’s rental performance.

Occupancy rate = (Booked days / Total available days) x 100

A property in which the owner lives instead of renting it out.

A property under contract (an offer has been accepted), but the sale has not yet closed. It is effectively off the market until the deal is finalized.

The increase in a property’s value over time due to market conditions, improvements, or other external factors.

Mashvisor’s tool designed to help investors and buyers locate properties that meet specific criteria, such as location, price range, and property type.

A professional or company responsible for the day-to-day management of rental properties, including tenant/guest relations, maintenance, rent collection, and regulatory compliance.

Mashvisor’s tool where properties are listed for sale, connecting sellers with buyers.

A proprietary Mashvisor metric that measures how likely a property is to be used as a rental (short-term or long-term). This score is based on whether similar properties have been rented out in the past or are currently being listed as rentals. A higher score means the property has strong rental potential.

Real estate classification based on its design, use, and structure, such as single-family homes, multi-family units, condos, or townhouses.

The estimated market value of a property determined by factors such as comparable rental income, cash flow, cap rate, and other proprietary metrics.

Land and any structures permanently attached to it, including residential, commercial, and industrial properties.

An individual or entity that purchases real estate to earn a return on investment, either through rental income, property appreciation, or both.

Ongoing costs associated with owning and operating a property, such as mortgage payments, property taxes, insurance, maintenance, and management fees.

A score or ranking that evaluates how local laws and regulations impact the operation and profitability of rental properties, particularly short-term rentals. This metric helps investors understand potential legal risks and operational constraints.

Comparable rental properties used to assess and benchmark rental rates, occupancy, and overall market performance. These comparisons help in setting competitive rental prices.

A property purchased or managed with the intent to generate rental income. It can be used for short-term (vacation) or long-term rentals.

The income generated from renting out a property, typically calculated before deducting expenses. It is a key component in evaluating a property’s profitability.

The approach taken by an investor or host to maximize rental income. This usually involves choosing between short-term vacation rentals versus long-term leases.

A regulatory limit on the number of days a property can be rented within a specific period. Local ordinances or homeowner associations often impose such limits to control rental activity.

A performance metric used primarily in the hospitality industry to measure the revenue generated per available rental unit.

A measure of the profitability of an investment, expressed as a percentage. It shows how much net profit is generated relative to the total investment cost.

ROI = (Net profit / Total investment) x 100

A rating or score reflecting the quality and performance of local schools. High school ratings can be a significant factor in determining neighborhood desirability and property values.

Local laws and regulations that govern the operation of short-term rental properties, including licensing requirements, occupancy limits, and safety standards.

A property rented out for short periods, typically catering to travelers and vacationers. These properties are often fully furnished and managed through platforms like Airbnb and Vrbo.

Indicates that a property has completed the sales process and is no longer available on the market.

A numerical score (on a 1 to 100 scale) that measures the accessibility and quality of public transportation near a property. Higher scores indicate better transit options.

A consolidated messaging system in the vacation rental software that aggregates communications from multiple hosting platforms into one central location, simplifying guest communication and management.

A cost representing the loss of potential rental income during periods when the property is unoccupied. Extended vacancies increase the overall payback period for the investment period by reducing cash flow, thereby impacting the profitability and return on investment.

Software designed to help hosts manage vacation rental properties by automating tasks such as bookings, calendar synchronization, guest communication, and revenue management.

A measure of how walkable an area is based on the proximity and accessibility of amenities such as restaurants, shops, parks, and schools. It is usually scored on a scale from 1 to 100, with higher scores indicating better walkability.