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15 Property Management Performance Metrics For Professionals

What’s the short-term rental industry without data? For property managers and owners that don’t track property management performance metrics, the future holds a lot of unaccomplished goals, a lack of progress, and flawed operations.

If you don’t know where to start, these analytics can seem intimidating or even irksome. That’s why we’ve gathered valuable tips from leaders in the industry to create a list of 15 property management performance metrics that we’re confident will drive your business to data-driven success! 





What are property management performance metrics and why do you need to track them?

Property management performance metrics are measurable values that help you as a property manager or owner to:


  • Track your performance and progress
  • Make informed decisions
  • Work towards business objectives
  • Identify and understand trends
  • Solve problems

From occupancy rates to referrals, it’s essential to track these metrics so that you can make decisions based on facts instead of feelings. You’ll be able to calculate the return on investment (ROI) of the actions that you take so that you can adjust your operations for maximum profit. 


Best vacation property management performance metrics to track, by department

We’ve divided these 15 vacation property management performance metrics key performance indicators (KPIs) by department so that you can easily navigate them:


  • Revenue Metrics
    • Occupancy rate
    • Average daily rate
    • Average number of nights stayed
    • RevPAR
    • Revenue per channel
    • Value of transaction per channel


  • Operations Metrics
    • Homeowner churn rate
    • Net operating income
    • Percentage of bookings per channel


  • Marketing Metrics
    • Referrals
    • Customer acquisition costs
    • Website traffic


  • Guest experience Metrics
    • Guest messages sent per month/per channel
    • Reviews
    • Social media engagement


Revenue metrics


Occupancy rate

Occupancy rates (OR) are a key metric that can be used to adjust and compare prices. If your occupancy rates are too high in comparison to similar properties in the area, it might be an indicator that your prices are too low.

It’s important to keep in mind that your occupancy rate doesn’t take into account days that are intentionally blocked for repairs and other check-ups.

How to track it: To calculate your occupancy rate, divide the total number of nights booked by the total number of nights available and multiply the result by 100.


Occupancy rate calculation_vacation rental metrics
Occupancy Rate


Average Daily Rate

The average daily rate (ADR) indicates what guests are paying for a specific period in your vacation rental property and is useful for identifying seasonal trends.

If numbers are too low, it may be a sign that your prices need to be adjusted. To increase your ADR, you can consider upselling or cross-selling additional services.

How to track it: To track your ADR, divide a unit’s total revenue generated by the number of nights it was rented.


Average Length of Stay

Also known as the Average Number of Nights Stayed, the ALOS is a metric that reveals the number of consecutive nights that guests book your property. Since the start of the pandemic, vacation rental statistics show that the overall ALOS for short-term rentals has increased due to remote work and staycations. 

How to track it: Divide the total number of nights that a property was booked by the total number of reservations.


Average Length of Stay calculation_vacation rental metrics
Average Length of Stay



RevPAR (revenue per available room) is one of the most popular metrics in the hospitality industry for measuring performance. It uses your average daily rate and occupancy rate to calculate how much revenue your units are generating.

CEO of Lifty Life Connor Griffiths believes that many short-term rental managers and owners often make the mistake of tracking only their average daily rate or occupancy rate. According to him, “RevPAR provides a more holistic view on your performance and is critical to understanding your property, benchmarking against competitors, and analyzing weaknesses.”

How to track it: To calculate RevPAR, multiply your average daily rate by your occupancy rate.


Revenue per channel (including direct)

If you’re listing your properties on channels like Airbnb, Vrbo, and HomeAway and have your own direct booking website, it’s essential to track your rental revenue per channel.

All of these platforms require time and energy so by analyzing the revenue that they bring in through a vacation rental channel manager, you can make well-informed decisions and distribute your time more wisely. This metric is also helpful to understand year-over-year trends.

How to track it: View your earnings on both OTAs and vacation rental software to compare them.


Value of transaction per listing channel

Whereas revenue per channel indicates how much you’ve earned from a specific channel during a chosen time period, the value of transaction per listing channel lets you know how much revenue you’ve generated from one booking on a specific channel.

You can use this information to understand whether your rates are too high or too low depending on the competitive market.

How to track it: Divide the total revenue generated by a channel by the number of bookings received.


Operations metrics


Homeowner churn rate

As a property manager, your homeowner churn rate lets you know how many clients you’re retaining versus how many you’re losing. It does this by measuring the number of homeowners that you’ve lost as clients by the total number of clients that you have.

Thibault Masson from Rental Scale-Up shares that “it costs so much money to find and acquire a homeowner that seeing them go is terrible. Making sure that a company is measuring how many homeowners are leaving is important, especially for large organizations.”

There are several reasons why your business might have a high churn rate. According to Masson, it may be because you’re disregarding property owners in a certain region or because competing property managers have stepped in.

Furthermore, if you’ve come across clients that are not on par with the kind of guest experience that you want to deliver, Masson recommends letting go of them and pursuing properties that are a better fit for your vacation rental business.

How to track it: Divide the total number of lost clients by the number of total clients and multiply the result by 100.


Net operating income

The net operating income (NOI) is the revenue that a property earns once the operating expenses have been deducted. It’s an important metric to examine your vacation rental profitability, which can be improved by reducing your operating costs and reviewing your business model.

How to track it: Subtract your operating expenses from your total revenue.


Net operating income calculation_vacation rental metrics
Net Operating Income


Percentage of bookings per channel (including direct booking)

Similar to the revenue per channel or value of transaction per listing, the percentage of bookings per channel can guide you towards issues that you may not have noticed before.

Have you spent less time maintaining a certain platform and now it’s underperforming? This metric is a clear sign to update your descriptions and photos to attract more clients and boost your percentage of bookings!

How to track it: Divide the number of bookings by the days in a specific period and multiply the result by 100.


Marketing metrics



Mark Simpson, Founder of Boostly, believes that the vacation rental industry lives and dies by the number of referrals a host gets from their guests. Referrals are essentially a method of word-of-mouth marketing in which customers recommend your business to others in their network.

Simpson rejoined his family business 10 years ago and one of the first things that he did was to create a referral program in which he emailed each guest at departure, asking them to share his business’ details with family and friends.

Whenever these referrals led to bookings, the guest would receive a present in the post. Simpson would track everything on a Google Sheet and apply the 80/20 rule each year to find out which 20% of his guests had referred the business, therefore generating 80% of his income. For Christmas, the 20% would always receive a special gift.

This method has a significant ROI and is the fast track to creating long-term ambassadors for your business.

How to track it: Organize a referral tracking spreadsheet to always stay on top of things.


Customer acquisition cost

The customer acquisition cost (CAC) does exactly that—it measures the cost of acquiring a new customer. These costs can be attributed to your marketing method, which typically ranges from content creation on social media to listing on a variety of channels.

Knowing the cost of acquiring a guest can help you improve your acquisition strategy to retain more clients.

How to track it: Divide your total revenue spent on marketing by the number of customers acquired.


Customer acquisition cost_vacation rental metrics
Customer Acquisition


Website traffic

You’ve spent time building a vacation rental website with direct booking strategies and now you’re left to wonder if your efforts are making an impact.

Your website traffic will let you know how many people are viewing your business within any given period. You can use this to track your performance and make improvements along the way.

How to track it: Through vacation rental software or tools like Google Analytics and SEMRush.


Guest experience


Guest messages sent per month/per channel

The number of messages that you send determines how much time you’re spending on each guest per channel and how much each message costs. This is key information for property managers and vacation rental owners who want to scale their businesses and grow their team.

How to track it: To optimize your messaging strategy, start automating emails and text messages.


Guest messages sent per month/per channel _vacation rental metrics
Guest Messages



Reviews generate trust and can be a deciding factor when it comes to booking accommodation. According to Connor Griffiths, “reviews are critical to the success of your property on OTAs such as Airbnb and Vrbo. They impact OTA SEO, revenue, occupancy, and nearly every other important metric.”

How to track it: Most OTAs and direct booking websites generate an overall rating based on reviews.


Social media engagement

Social media engagement is essentially a measurement of how people are interacting with your account through likes, comments, shares, clicks, and profile visits. It’s an extremely important number that will help you to optimize future posts and boost your performance over time.

How to track it: Most social media platforms will let you know your engagement rates. However, if you’d like to calculate it manually, just divide the total number of interactions received by the total number of followers and multiply the result by 100.


Social media engagement calculatio _vacation rental metrics
Social Media Engagement



Before diving in headfirst and tracking all of these 15 vacation property management performance metrics and KPIs at once, start by picking a few from each category. Above all else, remember to take advantage of vacation rental software and other useful tools that will help you to scale your business and increase revenue.

Distributing your listings is a strategy, not a task. Take our free 5-day email course for property managers who want new, creative strategies for distributing their vacation rentals.



These 5 Tips Will Help Boost Your Vacation Rental Profitability

When it comes to running a successful business in the vacation rental industry, both revenue and profitability are factors that need to be taken into account. 

Because revenue is the total amount of money generated while profit is the remaining income left after deducting expenses, you can actually have a net loss while still generating revenue. With this in mind, especially during such trying times, professional property managers should focus on boosting their vacation rental profitability in order to maintain a sustainable and long-lasting business. 

Avantio and AJL Atelier have come together to deliver a 360 profitability solution and recently joined forces in a webinar that focused on five of the most important tips for improving the vacation rental profitability of short-term rental properties. The in-depth webinar included Simon Lehmann, CEO and Co-Founder of AJL Atelier, Kyle Davies, Senior Account Executive at Avantio, and Manuel Giner, CEO of Avantio. 

In this article, we’ve used the valuable advice of these experts as inspiration for ideas and actionable steps that professional property managers can use to improve their businesses. 

Distributing your listings is a strategy, not a task. Take our free 5-day email course for property managers who want new, creative strategies for distributing their vacation rentals. 

The vulnerabilities of a professional property manager 

As the COVID-19 pandemic has reminded us, the professional property manager, and hospitality industry more generally are extremely vulnerable to being impacted by unpredictable events.

AirDNA and STR published a report in 2020 that analyzed the impact of the pandemic on vacation rentals. What they found is that “global new bookings fell 47% from more than 2.3 million in January 2020 to just 1.2 million in April. Year over year, global new bookings were down 61%”. 

Despite these worrying numbers, property managers who understood vacation rental profitability were much more likely to survive the strict travel restrictions over the past year, as they have been able to identify what wasn’t working and make necessary changes.  

How To Transform Your Vacation Rental Profitability 

To give you a better idea of how to transform your vacation rental profitability, we’ll be discussing the following five points: 

  1. Calculate all of your fixed and variable costs 
  2. Measure the true cost of customer acquisition 
  3. Put profitability first 
  4. Focus on reducing your operating costs 
  5. Review your business model and owner contracts regularly 

Let’s get started. 

Tip 1: Calculate all of your fixed and variable costs 

Understanding and calculating the fixed and variable costs in your business is one of the first and most important ways to increase your vacation rental profitability because it allows you to strategically price your units.

Fixed costs are expenses that are usually constant despite changes that might occur during a specified period, while variable costs refer to expenses that are associated with individual units and are triggered over time. Some examples of fixed costs in vacation rental businesses are: 

  • Mortgage payments
  • Employee salaries 
  • Insurance
  • Real estate taxes
  • Internet and cable subscriptions 
  • Office rent 

Common variable costs include: 

  • Third-party booking fees and commission 
  • Marketing expenses
  • Utility fees
  • Payments to owners
  • Cleaning services
  • Repair fees

So what do you do once you’ve established these costs? Here’s an example: Let’s say that your fixed costs for one unit add up to $1,200 a month while your variable costs are an average of $650 per month (keep in mind that variable costs change depending on the number of bookings you receive). For this rental to break even (let alone be profitable), you’d have to generate a minimum of $1,850 each month.

Now that you have this figure, you know that you need to be able to charge guests to be profitable. If the fee you’ll have to charge guests is unrealistic, or you find you’re banking on 100% occupancy year-round to break even, then you know you need to find ways to cut costs.

Whether you’re keeping on top of the books or you work with an accountant, it’s crucial to consider every expense. Something as insignificant as complimentary kits eventually adds up when bookings start to increase. Every little amenity must be factored into your overall costs.   

According to Lehmann, it’s recommended to define both fixed and variable costs at least once a year on a business level as well as on a more precise booking level to be able to set your rates accordingly and ensure profitability. 

Tip 2: Measure the true cost of customer acquisition 

When it comes down to it, property managers have two main customers: homeowners and guests. When the focus on these customers is unbalanced, meaning either homeowners or guests are favored more than the other, the profitability of the business is affected.

Measuring the true cost of customer acquisition for both of these parties, referred to as the customer acquisition cost (CAC) and property acquisition cost (PAC), is essential because it lets you know whether you’re running a viable business with a suitable distribution strategy: 

  • CACs are those related to acquiring new renters, such as marketing costs, your sales team, and commission fees from OTAs. To calculate it, just add up the expenses required to receive bookings and divide it by the total number of customers acquired. Analyzing this cost is key because it can help you rearrange your costs—you might, for example, find that a certain OTA is no longer serving your business. 
  • PACs are the fees that come with taking on a new vacation rental property, such as generating new contracts and administration tasks.

To accurately measure the CAC and PAC of a property management company, you should also consider metrics like your churn and repeat rate. The churn rate, which refers to the percentage of homeowners not retained, can trigger costs if it’s positive because it forces property managers to generate new contracts. 

The same goes for calculating your repeat rate, or the number of guests that re-book a property. To increase your repeat rate, it’s important to focus on both direct booking strategies and portal bookings from OTAs like Airbnb, Vrbo, and HomeAway.

Lehmann believes that you should have at least 50% direct and 50% indirect business. He says, “[Property managers] need to balance it and have eggs in different baskets. One thing you need to be extremely mindful of is having as many channels as you possibly can because, still today, we’re seeing property managers who solely depend on Airbnb for demand generation.

“For me, for property valuation, a business like that has no valuation because it’s solely dependent on one source channel and the pandemic has shown that if that tap is turned off, there’s no more demand and your business is done.”

Using vacation rental software like Avantio solves this problem. Not only does it allow you to integrate with all of the leading online travel agencies and boost your visibility, but you can also design your own professional website to increase customer loyalty and establish your brand.

Aside from what we’ve already mentioned, vacation rental software helps improve your profitability because you can: 

  • Easily incorporate discounts and promotional codes
  • Upsell extra services
  • Automatically (and strategically) adjust prices 

Tip 3: Put vacation rental profitability first 

Having profitability at the forefront of your vacation rental strategy means putting in additional time and effort to ensure longevity for the company. This idea was proved in a recent case study that AJL Atelier conducted to analyze the profitability of Feeling Italy, a vacation rental agency with over 60 properties. 

Remove unprofitable rental properties from your portfolio 

During the case study, AJL Atelier found that while the business was profitable at a portfolio level, 10 of the properties were actually making negative contributions. When including the non-profitable properties, the agency had a profit margin of 4%. Once these units were removed from the equation and a proper cost analysis was conducted, the profitability jumped to 11%, despite a drop in revenue. 

That said, by detecting properties that are negatively impacting your business and minimizing the costs that come with these units, you can reduce your break-even point significantly and be more profitable. 

As well as monitoring KPIs like revenue per property, your Average Daily Rate, and occupancy rates, you should also review the characteristics of areas in which your properties are located. Is there a high vacancy rate in the town? Have crime rates shot up recently?

Proactively asking the right questions and doing the necessary research will help you decide whether a property is worth managing or not, always with a focus on profitability. 

Adopt a flexible commission approach 

There are three main ways that property managers charge homeowners: 

  1. Fixed-rate model: In this model, property managers receive the same flat fee every month regardless of the number of bookings. 
  2. Guaranteed income: This method ensures passive income for homeowners all year round, meaning that property managers pay a fixed monthly rate and keep the profits. This also means that during times where there are no bookings, property managers still have to pay the same amount despite not generating any cash flow. 
  3. Commission model: The percentage-based commission model is a more flexible method in which property managers are paid depending on what is earned in a given month. 

Costs vary depending on whether you’re managing a beach rental, urban rental, or mountain rental. Since urban rentals are usually closer in distance and require less maintenance, they usually have lower property management fees. 

Some property managers may also charge homeowners with additional management fees such as: 

  • Leasing fees
  • Advertising
  • Maintenance 
  • Eviction Fees
  • Late payment fees

Although the fixed-rate or guaranteed income model may work in some cases, they tend to be a flawed solution for vacation rental management companies working in areas that are affected by seasonality, such as Florida. In this case, a flexible commission approach is more beneficial as it allows you to professionalize your business and adjust your strategy depending on the demand that exists during a given time. 

Be ready for growth in the vacation rental market

By taking a look at vacation rental statistics and trends for the future, it’s clear that the lodging industry has an exciting road ahead. In fact, in a 2021 report by AirDNA, the company stated that “high levels of demand and a delayed expansion of the available supply of new STR units will mean at least two years of elevated occupancy levels for U.S. properties.” 

As a property manager, this anticipated post-COVID rise in demand presents an opportunity to increase profitability and grow your business. To effectively take advantage, consider the following areas: 

  • Customer service: Now more than ever, guests have high expectations for communication and value property managers that make them feel welcome. That could mean complimentary wine and chocolates to greet them on arrival or simply ensuring the kitchen is equipped with all the essentials. 
  • Highlighting your unique selling points: After a year of sitting indoors, travelers want something different. Take the time to consider what makes your properties stand out and emphasize these characteristics wherever you can.
  • Automation tools:  Save time and effort with automation tools that allow you to answer frequently asked questions before they even arise. For instance, cut down on post-check-in texts about how to connect to Wi-Fi by ensuring that information is all covered clearly in an automated welcome email on the day of arrival.

Property managers who get ready to distinguish themselves from the rest of the pack when the expected tourism boom period begins will be in a great position to boost their vacation rental profitability. 

Tip 4: Focus on reducing your operating costs 

Another way to increase profitability is to thoroughly analyze your operating costs. Lehmann recommends “doing a proper cost control at least once a year if not twice” and maintaining a balance between internal costs (which tend to be fixed) and external costs (which tend to be variable). Doing so will ensure that you preserve a high level of quality without being bombarded with unmanageable costs. 

Consider negotiating existing contracts (e.g. cleaning or laundry contracts), tracking costs that you might be absorbing from owners (such as inventory replacements), and looking over your insurance policy to know exactly what claims or damage you are protected from.

Jeremy Gall, Founder & CEO from Breezeway says that “property care and operations is one of the biggest areas for vacation rental managers to reduce costs and boost profitability.”

According to their 2021 Property Operations Survey, “scheduling property care tasks and coordinating work and issues with teams were two of the biggest challenges for vacation rental managers. Those who can trade manual workarounds for automated processes can eliminate over 30 hours in admin time each month and save over $50,000 in labor costs, housekeeping call-backs, and maintenance billables.”

There are many ways to incorporate touchless technology touchpoints and other digital advances into your business to save money in the long term. Consider some of these smart home technologies for vacation rental properties: 

  • Smart locks for keyless check-ins 
  • Digital property guides
  • Smart home security systems 
  • Thermostats that can be managed remotely

These innovative additions are a win-win because not only do they help to reduce recurring costs, but they also enhance your customer experience and reputation! 

Tip 5: Review your business model and owner contracts frequently 

Be flexible with your communication and commission. The more flexible you are, the easier it will be to react to changes in the market. Put yourself in the shoes of owners and work together towards building a relationship based on trust. They have, after all, made a significant vacation rental investment and given you control of their valuable assets.

Marketing yourself to owners is equally as important. The same way you would learn how to market your villa rental or a client’s second home, you should also be able to market your property management business. Manuel Giner, CEO of Avantio, advises that “you have to include owners in your marketing plan because you have to do marketing for them.” 

He suggests “giving value to the services you provide, even if they are free. There are lots of services [property managers] do for owners, like home inspections or opening the door for a handyman, that need to be shown to owners so that they know what you’re doing for them, even if it’s free.”

Key Takeaways

The next time you want to just focus on revenue or vacation rental income, remember the importance of profitability and its role in creating a sustainable vacation rental business.

By following these five tips and taking the time to calculate your true costs, reducing them when possible, and having a flexible approach to your rental management, you can transform your business and maximize your efforts all at once. 

Distributing your listings is a strategy, not a task. Take our free 5-day email course for property managers who want new, creative strategies for distributing their vacation rentals. 


Professionalize your Property Care in Travel’s New Climate

Tips for Optimizing Property Care Service Delivery During the Pandemic 

The pandemic has highlighted the importance of maintaining high-quality, safe, and clean vacation rental properties. As the operational needs of the vacation rental landscape shift beneath us, so do the expectations and behaviors that guests take to travel. Meeting the needs of these new traveler expectations can be a challenge, and many managers struggle with the operational aspects of maintaining high-quality properties (e.g. scheduling teams, coordinating work, tracking property readiness, etc.). More work presents a unique opportunity, though, and managers who professionalize their property care: operational processes, housekeeping protocols, and remote work coordination will gain a competitive advantage. 

Below are our partner Breezeway’s tips for managers to automate operations and optimize property care service delivery in the current climate. 

Ensure Communication and Transparency with Guest and Owners

Customer service is invaluable in the vacation rental business, and the expectation for effective communication with guests and homeowners has grown higher. What have you done to ensure the property care: quality, safety, and cleanliness’ is the question on everyone’s mind. Managers can instill more confidence with clients through your marketing channels (property listings, blog posts, social media channels, etc.) as well as purposeful communication (email marketing, text messages, guest and owner portals).

Enhance Your Property Care Protocols

While cleanliness has always been at the core of property care, the importance of sanitation and disinfection is now not just part of hospitality, but also encompasses guest safety. Managers should consider wiping down high-touch surfaces (e.g. light switches, doorknobs, thermostats, etc.) between each stay, customizing checklists for each property, and augmenting checklists with guidance from leading authorities. Following detailed cleaning procedures has become the most critical element of property care, and is paramount to ensuring the safety of guests, owners, staff and communities.

Tighten Lines of Internal Communication with Teams

Times of uncertainty present an opportunity to revamp and rededicate your teams to best practices. Doing so will help make sure housekeepers, employees, and contractors are on the same page, reduce internal headaches, and build trust among your team. Improving processes to share information and task updates with staff and departments is also paramount, and leads to high-quality work done at each property (disorganized communication tools like text messages, and WhatsApp can’t won’t cut it these days). Consider adopting technology that ties comments and updates to specific property care tasks, and eliminates ad-hoc communication.  

Start Capturing and Using Property Data 

Using digital checklists for quality control opens up new doors for vacation rental property managers, and empowers them to store data on historical issues, appliance conditions, access codes and passwords. These data points arm managers to drive more predictive asset management, and quickly diagnose issues, reduce repair time, and prevent emergency maintenance issues.

Breezeway and Avantio

Breezeway’s property care and operations platform eliminates the operational headaches in short-term rental management. The purpose-built software integrates directly with Avantio to make it easy to automate your property operations and deliver an amazing rental experience. 

Interested in getting started? Request a demo here and a member of Breezeway’s team will be in touch ASAP to give you a customized one-on-one product walkthrough, and share the full capabilities of the software. 

Google penalises websites without SSL

We all want to appear on the first page of Google, but when we think we have everything clear, Google change their algorythm again. It’s changed more than 500 times a year, which works out at once every 17.5 hours. Hard to keep track, right?

But some changes are more significant than others.. Some weeks ago, Google has become more stringent with the Secure Socket Layers Certificates – SSL or the “s” in https:// websites. Now, if an SSL certificate is not installed the user may be confronted with an alarming message that this website is not secure, or may even not be able to access the web itself.

But what exactly is the security certificate SSL?

SSL stands for Secure Sockets Layer, which corresponds to a protocol of security which ensures that data is sent securely. The transmission of data, like credit card numbers or personal data is encrpyted. What Google desires, (and Avantio too) is that websites are as secure as possible, and with new measures like this, he who doesn’t adapt will be at a significant disadvantage.

Now, when a web has an SSL certificate, the word “Secure” appears before the URL, with the padlock icon. Upon clicking this, the user will be assured that “Your information (for example, password or credit card numbers ) is secure when sent to this site. A reassuring message for any user looking to potentially book one of your properties.

What happens if you don’t have an SSL certificate?

After this latest update of Chrome 68, an alarming “Not Secure” message will appear next to the URL, if not SSL is installed. In the coming versions, this “Not Secure” will be written in red alongside a warning message.

Advantages of having an SSL certifcate installed

Having an SSL certificate brings a sense of condidence and security to your website users, as well as protecting your website against possible cyber /spam attacks. Furthermore, it’s also the case that the SSL cerfificate means a faster page loading time and importantly, boosts your website’s positioning in Google. At Avantio we offer the service of both purchase and installation of the SSL certificates, so your website is in line with this latest important update.

If you don’t have an SSL certificate, now’s the time to contact your Account Manager to get this taken care of.