Seasonality
The predictable swings in short-term rental demand across the year that move occupancy, nightly rate, and revenue. Strong peak months can mask thin or negative off-season cash flow.
Seasonality is the regular rise and fall of demand across the year, driven by weather, holidays, and local events, that pushes occupancy and nightly rates up in peak months and down in the off-season. A beach rental booked solid in summer may sit nearly empty in winter, and a ski town runs the opposite calendar.
A single annual average hides this risk, because strong peak months can paper over an off-season that loses money. Lenders often haircut booking projections to account for it, and you should do the same: stress-test the slow season on its own to confirm the property still holds up when the calendar turns against you.
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Related terms: Occupancy Rate , Vacancy Rate , DSCR (Debt Service Coverage Ratio)
Last updated . Part of the FinExplained finance glossary .