Vacation Rental Profits: How Much Money Should You Make?

The income your vacation properties generate has a floor and a ceiling: how much money you should be making is a lot different than how much money you could be making 


The vacation-rental market is more competitive than ever, and the data necessary to determine the possibilities on that spectrum can be downright dizzying. It’s a meticulous process that involves an ample amount of number-crunching and data analysis. We’ll review just a few of those metrics below. 


There are many industry studies out there that attempt to pinpoint vacation rental profits and determine how much money short-term rentals should bring in annually. But what does any of that mean for you? The locations of your properties, alone, can alter those numbers drastically. And ultimately, broad-range data like that isn’t specific to your individual rentals or situation, landing you right back at the starting line:


In terms of vacation rental profits, how much money should you be making on your properties?


How much could you be making, and how can you know for certain that you’re hitting those numbers?


Rental property profits

A full-service rental management company like VacayHome Connect can ensure you’re boosting your rental income, all while optimizing your listings on top channels like Vrbo,, and Airbnb—something that property management software cannot do through direct connects. 


VacayHome Connect’s team takes a thorough, data-driven approach, combining industry expertise with advanced metrics to provide property managers with all the revenue-related tools necessary to run a successful vacation rental business.


Here are just a few of the metrics the VacayHome Connect team focuses on:


‍Rental Demand Rating (RDR)

Competing with similar vacation rentals in a specific area requires you to consider many things, from amenities to public-transportation accessibility. But before all that, it’s best to know what the rental demand is, in general, for your property’s locale. Rental Demand Rating (RDR) is a score that combines annual occupancy with listing growth rate to illustrate the relative travel demand in a given market. 


‍Seasonality Score

In most areas, different seasons (and the latest travel trends) bring different events, with festivals, conventions, and other occasions filling up the calendar. Prudent property managers capitalize on that fluctuation by adjusting their rates accordingly: they know their market, and importantly, they know what their competitors are charging. Seasonality Scores shed light on how much travel demands differ from peak seasons to low seasons. It’s a percentage variance between the minimum and maximum RevPAR (Revenue per Available Room) over the past year.


Revenue Growth

Did your property earn more this month than it did during the same month a year ago? The VacayHome Connect team calculates the Revenue Growth metric by reviewing the changes in year-over-year RevPAR for any property that received bookings during the same time periods.


‍Rental Activity

To be considered a “full-time” rental, a property has to be available to rent for a minimum of 181 days in a year. Rental Activity, then, is a segmentation tool that divvies properties up by the number of days they were rentable and the number of days they were actually rented. ‍


‍Other important metrics:

  • Occupancy Rates
  • Historical Occupancy Rates
  • Guest Origins & Top Domestic and International Cities
  • Investability 
  • Regulation Scores
  • And more


If you’re interested in maximizing your own revenue potential, contact VacayHome Connect today.

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