The STR Report Blog

What is Average Daily Rate (ADR) in Airbnb? + Tips to Increase Your ADR

If you manage a vacation rental or oversee a portfolio of short-term rental properties, understanding your financial metrics is essential. One of the most valuable tools in hospitality revenue management is RevPAR , which stands for Revenue Per Available Room . While this metric originated in the hotel industry, it has rapidly gained importance for Airbnb hosts, VRBO owners, and property managers who want to refine pricing strategies and improve occupancy rates. RevPAR provides a comprehensive view of how effectively you're monetizing your property’s availability. It combines both your Average Daily Rate (ADR) and occupancy rate into one simple metric. Unlike other metrics that focus solely on revenue or booking rates, RevPAR highlights the dynamic relationship between pricing and demand. Simply put, if you're aiming to increase your earnings, having RevPAR as a key performance indicator should be a priority.

Can Airbnb Hosts Deduct Home Improvements? Short Answer: Yes—but it depends on how the IRS classifies the upgrade. Airbnb hosts can fully deduct repairs (like fixing a leak) in the year they're made, while capital improvements (like a kitchen remodel) must be depreciated over time—typically 27.5 years. Strategic tax planning can accelerate deductions through bonus depreciation, Section 179 expensing, or cost segregation. Even hosts of mixed-use properties can claim partial deductions based on rental usage. To maximize tax savings, document everything, file the right forms (like Schedule E and Form 4562), and align your upgrades with both guest appeal and IRS rules.

12 High-ROI Airbnb Amenities to Elevate Guest Experience and Revenue

Maximize your Airbnb revenue with seasonal pricing! Learn how to adjust rates for peak, low, and shoulder seasons using data-driven strategies.

Smart Home Technologies for Vacation Rentals