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Vacation Rental Glossary

Break-Even Point

Vacation rental metrics or key performance indicators are critical measurable aspects of your business that you can lean on to understand and manage your business better. From occupancy rates to referrals your vacation rental is getting, it can be helpful to track these metrics. “You can’t improve what you don’t measure!”

If you understand the business metrics, you and/or the vacation rentals’ manager will be able to analyze the return on your investment and return on revenue more accurately to improve your operations.

The Break-Even Point is when revenue equals costs, with no profit or loss. Example: A rental reaches break-even when earnings cover its operating costs.