Short-term rental glossary: key terms in Italian property management
Definitions of the most used terms in the Italian short-term rental and property management sector: KPIs (ADR, RevPAR, occupancy, EBITDA), contract models (revenue share, master lease), software (PMS, OTA, channel manager), compliance (CIN, cedolare secca, regime forfettario), operations. Link to a term, share the URL.
KPIs and metrics
ADR (Average Daily Rate)
Average nightly rate on sold nights only.
ADR (Average Daily Rate) is the average nightly rate on sold nights only. Formula: total room revenue ÷ nights sold. It is one of the most used commercial KPIs for a short-term rental because it isolates realised price and ignores empty nights.
RevPAR (Revenue Per Available Room)
Revenue per available night, sold or not.
RevPAR (Revenue Per Available Room) is revenue per available night, whether sold or not. Formula: total revenue ÷ available nights, equivalent to ADR × occupancy. It combines price and fill rate and answers “how much does this unit really earn versus capacity?”
Occupancy rate
% of available nights that were sold in the period.
Occupancy rate is the share of available nights that were sold: nights sold ÷ nights available × 100. It is the fill KPI: how much inventory converted into bookings. “Available” should exclude owner blocks and maintenance only when those nights were never for sale — padding the denominator with closed inventory flatters the ratio and misleads owners.
KPI (Key Performance Indicator)
A key metric used to steer the portfolio.
A KPI (Key Performance Indicator) is a chosen metric that tracks whether you are hitting a business goal. In short-term rentals KPIs are not vanity charts: they are the dashboard for pricing, channels, costs and which units to keep or drop.
EBITDA
PM operating profit before interest, tax, D&A.
Earnings Before Interest, Taxes, Depreciation and Amortization. For a PM: net revenue minus operating and fixed costs, before tax. It measures the management business profit, distinct from a single owner’s net.
GBV (Gross Booking Value)
Gross booking amount before commissions and costs.
GBV is the full booking amount before OTA commissions and operating costs. It is the top of the margin waterfall down to net.
Contract models
Master lease (sublease)
PM rents the unit from the owner and sublets short-term.
The PM pays a fixed rent to the owner and keeps short-term revenue. Riskier (rent is due even at zero occupancy) but potentially more profitable. The critical line is monthly break-even.
Flat management fee
Fixed monthly PM fee, independent of performance.
The owner pays the PM a fixed monthly amount regardless of bookings. Less common on standard portfolios; more used on long relationships or luxury units.
Software, PMS and channels
OTA (Online Travel Agency)
Online booking platform (Airbnb, Booking, Vrbo, Expedia).
OTAs (Online Travel Agencies) are online booking platforms — Airbnb, Booking.com, Vrbo, Expedia and similar. They bring demand in exchange for a percentage commission; for most Italian PMs they remain the main sales channel.
PMS (Property Management System)
Software for calendars, bookings and channels.
A PMS (Property Management System) is the PM’s operational system: calendars, OTA bookings, guest messaging and often a channel manager. Common examples in Italy: Krossbooking, Avantio, Guesty, Smoobu, Hostaway. Some tools market “all-in-one”; in practice channel manager, PMS and accounting software are different jobs.
Channel manager
Syncs rates and availability across OTAs.
A component (often inside the PMS) that pushes rates and availability to Airbnb, Booking, Vrbo and other channels to prevent overbooking and calendar drift.
Booking engine
Direct-booking widget on the PM website.
Lets guests book on the PM website without OTAs, cutting commissions. Often bundled in the PMS.
Compliance and tax
CIN (National Identification Code)
Mandatory unique code for each short-term rental unit in Italy.
The CIN (Codice Identificativo Nazionale) is a unique code assigned by Italy’s Ministry of Tourism to each short-term tourist rental unit. Introduced by the 2023 Decreto Anticipi, it creates a national registry that sits alongside the regional codes (CIR, CIPAT, etc.) without automatically replacing them: in many regions they remain mandatory or are a prerequisite for the CIN, so keep them active. The CIN must appear on OTA listings and the operator’s sales channels.
Cedolare secca
Flat substitute tax on residential rentals, with short-let rates.
Cedolare secca is a substitute tax regime replacing IRPEF on residential rentals. For short lets, rates and conditions depend on current law (historically often 21% on the first unit and 26% from the second — always verify the tax year with an accountant).
Regime forfettario
Simplified VAT/tax regime for freelancers under a revenue cap.
The regime forfettario is a simplified tax regime for sole traders under a revenue cap, with substitute tax and lighter rules. For structured hosts or PMs with a VAT number it is often the alternative to ordinary taxation — and must not be confused with an individual owner’s cedolare secca.
Cassetto fiscale
Italian Revenue Agency private area with e-invoices and tax data.
The cassetto fiscale is the Italian Revenue Agency private area where a taxpayer (or delegated intermediary) views e-invoices, certifications and other tax data. For Italian PMs it is the primary source of passive cost invoices for accounting and management control — not a substitute for the PMS calendar.
CIR (regional identification code)
Regional registration code used before the national CIN.
A regional accommodation registration code used before the national CIN. In many regions it remains historical or complementary; national listing display duties now centre on the CIN.
Tax breakeven threshold
Turnover level where one tax regime beats another on net.
The turnover (and cost) level beyond which, all else equal, one regime (e.g. forfettario) yields a better net than another (e.g. cedolare). A scenario compass, not a fixed legal threshold.
Tourist tax (tassa di soggiorno)
Local tax on guests, collected by the operator.
A municipal tax charged to guests, usually collected by the operator and remitted to the city. It is neither PM nor owner revenue: keep it separate on statements.
Operations
Owner statement
Periodic report of revenue, costs and net sent to the property owner.
An owner statement is the periodic (usually monthly) report where the PM explains a unit’s revenue, costs, fees and net. It carries the commercial relationship: missing lines or wrong math erode trust even when operations are solid. Owners typically dispute OTA commissions, cleaning allocations and fee math first.
Break-even
Point where revenue covers all costs in the period.
The revenue (or occupancy at a given ADR) that covers fixed and variable costs for the period. In master lease it is the line below which the PM loses on fixed rent.
Zero occupancy
No bookings while fixed costs still run.
A period with no sold nights while costs continue (master-lease rent, base utilities, flat fees). It is the stress test of the contract model.
Turnover (guest changeover)
Checkout/check-in reset of the unit.
Everything between guests: cleaning, linen, checks, light maintenance. One of the largest variable cost lines per sold night.
Pet fee
Surcharge for guests with pets.
An extra charge when guests bring pets, covering wear and extra cleaning. Configure per channel and disclose clearly on the listing.
Late check-in
Guest arrival outside standard hours, often paid.
Arrival after the operator’s standard window. May generate an extra fee or staff cost; keep OTA, house manual and field ops aligned.
Marketing and acquisition
Lead magnet
Free resource offered in exchange for contact details.
A free asset (statement template, calculator, guide) offered for an email or lead to start the commercial relationship.
ICP (Ideal Customer Profile)
Description of the ideal customer for product and marketing.
A description of the ideal customer (segment, portfolio size, pains, budget) used to focus product, content and sales. For Dott.House: structured PMs and hosts in the Italian short-term market.
You use the terms — now measure them
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