While managing properties can be a lot of fun, you should remember that you are running a business. One of the most important factors for any business owner is Return on Investment (ROI). This allows you to see what aspects of the business are performing well and which need to be improved. This article will give you some ways of measuring your ROI.

One of the most important metrics to measure is your occupancy. You can’t make money from an vacant property. In fact, vacant property may be costing you money. For this reason, making sure that you have a steady stream of bookings is important. There are a few ways of measuring this metric.


First, you can examine gross bookings. This is simply the total number of bookings you have each year. You can further analyse your gross bookings by examining seasonal bookings. To do this examine the number of bookings you made during peak season and compare them to how well you did in the off-season. Finally, you should examine how many repeat bookings you received. This can help give you an indication of how good your guest experience is. Finding and analysing these figures is relatively simple and will provide of a good indication of how your current booking rates compare to previous years.

See also: How to Increase Your Vacation Rental Bookings


Another important metric to help you analyse your performance is by examining the amount of money you’ve made. One of the easiest ways of doing this is by examining your gross bookings. To do this, calculate the amount of money you’ve made from bookings and subtract expenses. This is one of the most important metrics for any business owner as it tells you amount of profit you’ve made from the business.

See also: How to Triple Your Rental Profits With AIRBNB


Another way you can analyse the amount of money you’re making from the business is total property expenses. This includes everything from the electricity bill to the amount of taxes you need to pay. Knowing this figure is important because it lets you know how much money you must make each year to produce a profit.

Listing Fees

Finally, you should measure any fees you are paying. Some advertising platforms can charge expensive fees for you to advertise with them. By measuring this metric, you can figure out exactly how much you are paying. Then, you can look at the number of bookings you receive through those sites to figure out if the site is worth it.

In Conclusion

This article has examined some ways for you to measure your ROI. First, we looked at some metrics you can use to measure how many bookings you are receiving. Then, we looked at some ways to measure your financial performance. By knowing accurate ways to measure your ROI you can more accurately market your property, focusing on the tactics that work and discarding the ones that don’t. It will also provide you with some effective ways to measure your performance and track your growth. So, use some of these methods to calculate your ROI today.

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