The difference between ‘Advertised Gross Income’ and ‘Owner Gross Income’ for an OBX rental investment property.

Investment property buyers should be using the ‘Owner Gross Income’ to determine a property’s cash flow.  You do not want to use the advertised gross income since this includes fees charged directly to the renters.

I reached out to Michelle Copeland, a property manager with Seaside Vacations, and here is what she had to share:

‘When looking at one of our Rental Projections the Owner Base/Gross is what the owner pays commissions on.  We take the owner base rate and add a bundled fee which covers guest related items (linens, keyless entry, maintenance program, reservation fee, CC fee, welcome gift, security deposit waiver-up to $3000 of accidental damage), which gives you the advertised rate.

The advertised rate can vary based on where the home is advertised such as VRBO, Airbnb, Homes2Go, Google Travel, Whimstay, Marriott Bonvoy, etc. due to the fees those service providers charge.  Our commission rate covers all advertising accounting, cleaning, 24 hr emergency services, etc.

We do not charge our owners any other items other than commissions such as annual fees or fees per reservations.’

We specialize in investment purchases and can provide a template to calculate cash flow.  Reach out to Heather Sakers today to get started with your Outer Banks investment property search!