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It refers to the expenses related to acquiring, maintaining, and financing a property or a rental property. Occupancy cost for STR properties can include expenses associated with listing it on booking websites, commissions or fees charged by the OTA platforms, and hiring a professional Airbnb photographer.
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Cap Rate Capitalization Rate, or cap rate, is a way to assess the potential profitability of a property regardless of financing. Think about your ideal guest experience, and what they might be looking for when searching for places to stay on Airbnb, VRBO, or any other platform.
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