| Word |
Description |
| 1031 exchange |
A transaction under United States law which specifies that if a property is sold and the proceeds of the sale are then reinvested in another property, then no gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise have been due on the first sale. |
| 2CO |
A fast and convenient online payment service. People like the convenience of this service since money is transferred automatically over the Internet, directly from their credit card or personal checking account.
|
| adjustable-rate mortgages |
A mortgage where the interest rate on the note is periodically adjusted based on an index. |
| advance payment |
Payment by the renter to the owner equaling a portion of the total rental amount. The advance payment is applied to the total rental cost. |
| Alfresco Dining |
An area, usually informal, where guests can dine outdoors. This area is sometimes covered. |
| amenity fee |
A certain amount paid to an owner or property complex above and beyond the rental rate that allows the renter access to certain amenities (skiing, golf, tennis, beach towels, beach chairs, etc.). |
| American Society of Home Inspectors (ASHI) |
The largest and most respected professional organization for the education and certification of home inspectors. |
| availability calendar |
An online calendar which can be updated to allow renters to view the dates open for a certain property. |
| bartered services |
Exchanging a stay at your vacation property for repairs, maintenance, or other work done. |
| broom clean |
A term used in the real estate industry to describe the cleanliness of a home. To broom clean a home, take out trash, remove personal items, and sweep floors. Broom cleaning generally does not involve sanitizing. |
| business plan |
A written list of the goals, objectives, and expectations that you have for your vacation rental business. |
| Butler |
A vacation rental's senior staff member – usually in charge of serving as well as general house management. |
| Chef vs. Cook |
Vacation rentals that include the service of a chef hire someone that is professionally trained and whose only job is to prepare meals for guests. Vacation rental "cooks", on the other hand, often double as housekeepers and usually have no formal training. As a general rule, their dishes are local specialties and leave guests raving! |
| cleaning fee |
A certain amount above and beyond the rental rate that is charged to renters to cover the cost of cleaning the property after their departure. |
| compromise |
Choosing a property that meets most of your vacation rental requirements, but may not be exactly what you wanted. |
| confirmation of booking form |
Form that includes the rental contract and rules sent to prospective renters at the time that they book your vacation home. |
| cosmetic upgrades |
Improvements to a home such as installing a new fireplace that are relatively inexpensive and make a big difference to the look of the home. |
| damage deposit |
A certain amount of money that the owner holds until after the renters have left the property. The damage deposit is usually an amount above and beyond the rental costs and fees. The typical security/damage deposit is 10-20% of the rental rate.
|
| damage waiver fee |
Fee that some owners collect in lieu of a damage deposit. A damage waiver is typically significantly less than a damage deposit—usually just $50-$100 depending on the property. Unlike a damage deposit, the damage waiver is nonrefundable. |
| deeded access |
A written and filed right to have access to a certain property and gives you assurance that you have the right to use the land. |
| deposit refund letter form |
Letter sent with the refund of the renter's security deposit after you have confirmation from you housekeeper that there was no damage or theft. |
| discrimination |
Restricting renters on the basis of race, color, religion, sex, familial status, disability, or national origin as under the Fair Housing Act. |
| Double Occupancy |
A rate that is charged per bedroom when it is occupied by two guests. Most vacation rentals do not offer single occupancy discounts – that is, the rate remains the same whether the room will house one or two people – and generally allow a maximum of two adults per bedroom. |
| electronic keyless lock |
A digital or push button mechanical lock that does not require a key or access card to operate. |
| Ensuite Bathrooms |
Bathrooms that are located within a bedroom, so that the guest has private access through their suite. |
| equity |
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens. |
| Estate vs. Villa |
Villas located on "estates" (often in Italy and sometimes the Caribbean) generally share common private property with at least one other residence. The large grounds of an estate typically make the distinction unimportant, as the villas remain just as private. |
| eviction |
The lawful expulsion of an occupant from a property. |
| Fair Housing Act |
Federal statute prohibiting discrimination against renters based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). |
| fair market value |
The highest price that a buyer would be willing to pay and the lowest price that a seller would be willing to accept. |
| fixed-rate, fixed-term mortgage |
Your interest and payments don't change over the length of the loan. |
| fixer-uppers |
Homes with many problems that can be purchased at bargain basement prices. |
| flood insurance |
Insurance that covers a property against physical damage caused by flooding; A requirement for homes in federally designated flood areas.
|
| FRBO (for rent by owner) |
When a homeowner chooses to rent a home themselves rather than go through a property manager. |
| Fully-staffed |
A vacation rental that includes at least one individual in each of the basic staff positions – cook, housekeeping and maintenance. A butler may be present as well if the cook does not also serve or act as a manager. |
| Gratuities |
Staff tips. Tipping the villa staff isn't mandatory. However, as is customary in the travel industry, recognition for a job well done is appreciated. |
| high-maintenance homes |
Older homes that require frequent attention in both time and money due to unseen maintenance and therefore very difficult to manage from a distance. |
| HOA (Home Owners Association) |
Association responsible for the maintenance, upkeep, and financial management of common areas in certain complexes and neighborhoods.
|
| homeowner insurance |
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents. |
| Housekeeping |
Some vacation rentals have daily maid service while others offer clean-ups mid-week or sometimes twice per week. |
| Infinity Pool |
A pool with a disappearing edge. The effect is often used as a trompe-l'oeil when the villa has views of the sea, so that the pool appears to drop into the sea. |
| interest-only loans |
A loan often tied to a fixed index in which you only pay the monthly interest, but do not gain any equity unless you make additional payments. |
| Internet Service Provider (ISP) |
A commercial service that sells access to the Internet to individuals.
|
| investment property loans |
A loan for property owners who will use the property less than 14 days or less than 10% of the days it's rented. Typically higher in interest rates and fees than primary home mortgages. |
| Lanai |
A Hawaiian word to describe any outdoor living space. It may be a patio or terrace, covered or uncovered. |
| Maid Service |
Housekeeping. Some vacation rentals have daily maid service while others offer clean-ups mid-week or sometimes twice per week. |
| Maintenance |
General vacation rental upkeep. Maintenance technicians sometimes visit the homes mid-week for aesthetic work like gardening and pool cleaning. |
| Manager |
An on-site vacation rental representative who is on-call to answer questions. Vacation rental managers very seldom live on the property itself, but are always available to help you during your stay. |
| Minimum Night Stay |
The minimum number of nights that a villa owner or manager will allow their home to be booked. These may vary from 1 to 14, depending on the destination and time of year. If you're set on a particular property but can't stay the entire time, you may always pay for the minimum.
|
| Nigerian scam |
Widespread scam in which owners deposit the check and then the “renter (in this case the Scammer)” asks for an immediate refund, or worse yet, they write a check for an amount greater than the balance owed and would like you to mail back the difference. Unfortunately, by the time bank discovers the counterfeit certified check, it's too late—you have already sent the refund amount and there is no recourse. |
| Ohana |
A Hawaiian guesthouse or cottage. |
| overimproving |
Adding improvements or expensive furnishings to your property which may make it nicer, but won't necessarily help you increase the rental rate for the property.
|
| owner's closet |
A locked closet that you set aside in your vacation rental property for your personal things.
|
| PayPal |
A fast and convenient online payment service. People like the convenience of this service since money is transferred automatically over the Internet, directly from their credit card or personal checking account. |
| pet deposit |
A certain amount of money above and beyond the rental rates. The pet deposit is refunded after the guests' stay if no damage was incurred. |
| pet fee |
Flat rate in lieu of a pet deposit. A pet fee is nonrefundable. |
| piggyback marketing |
Pooling marketing efforts with your vacation home neighbors to expand reach and save money. |
| PMC |
Property Management Company. These are the individual companies that maintain and manage the groups of vacation rentals. A few vacation rental owners manage their property on their own and do not employ a PMC. |
| pool heating fee |
A certain amount above and beyond the rental rate charged to renters wishing to use the heater on your pool or hot tub. |
| Private Island |
A privately-owned island, usually with just a handful of vacation homes for rent. The island may be rented exclusively or, depending on the location, shared with just the guests of the other properties. |
| Property Manager |
An on-site vacation rental representative who is on-call to answer questions. Vacation rental managers very seldom live on the property itself, but are always available to help you during your stay. |
| referred booking |
A booking that results from the referral of a friend, neighbor, or past renter. |
| reservation deposit |
A certain amount of money collected upon booking that validates the rental contract. The reservation deposit can convert automatically into a damage deposit. |
| Resort Recreation Specialist (RRS) |
A real estate agent who has completed special training in vacation/second home sales. |
| screening guests |
Taking steps to get to know potential renters before allowing them to rent your property. |
| security deposit |
A certain amount of money that the owner holds until after the renters have left the property. The damage deposit is usually an amount above and beyond the rental costs and fees. The typical security/damage deposit is 10-20% of the rental rate.
|
| self catering |
A term sometimes used for vacation rentals in Europe, South Africa, Australia, and New Zealand. Also applies to furnished apartments without an onsite cook. |
| shared maintenance |
Collaborating with your vacation rental neighbors by collectively hiring maintenance people or housekeepers. |
| sweat equity |
Contributing to a property in the form of labor or services rather than cash. |
| time-shares |
Homes divided in ownership or use on the basis of time periods, most often one or two week each year. |
| Transfers |
The trip from the local airport to the vacation rental, usually by private taxi. Individual vacation rental owners sometimes include this transportation in the rental rate, but your transfer details are always organized in advance, regardless of who is responsible for payment. |
| Vacation Rental Manager |
An on-site vacation rental representative who is on-call to answer questions. Vacation rental managers very seldom live on the property itself, but are always available to help you during your stay. |
| value added items |
Amenities like high chairs, porta-cribs, hot tubs, pool tables, and sofa beds that when added to your property could increase your occupancy. |
| Waterfront vs. Beachfront |
A waterfront vacation rental will either be sitting right against a body of water or have land that extends down to the water, but does not have a beach. Many of these vacation rentals still offer swimming out front, however. A vacation rental listed as beachfront always includes a portion of sand. |
| wire transfers |
Offer direct payment from one recognized bank account to another account. Payment is immediate and convenient and money is deposited directly into the seller's account. |
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