Revenue, defined.

When it comes to vacation rentals, the word "revenue" gets used in very different ways — and that difference can cost you when you're planning an investment. Not all "revenue" is truly money in your pocket.

Why it matters

Say a one-bedroom condo is advertised as bringing in $40,000 a year. If that figure includes $12,000–$14,000 in housekeeping fees you don't actually keep, the real revenue you can rely on is closer to $26,000–$28,000. That's a big difference when you're underwriting a purchase.

Watch the sales tax, too

Now consider tax. If a quoted figure includes the roughly 13% sales/accommodations tax guests pay, the number looks bigger than it is. On a $40,000 rental, that's about $5,200 — and it goes straight to the state, not to you. Include it in "revenue" and the real income you can count on is that much lower.

The honest way to read it

Before you compare two properties — or two managers — strip the number down to what you'll actually keep: revenue you retain, minus the taxes and pass-through fees that aren't yours. Compare like-for-like, and the real picture gets a lot clearer. At MPG, transparency is the point: monthly line-item statements show you exactly what your property earned and why.

Figures above are illustrative examples; actual revenue, fees, and tax rates vary by property and jurisdiction. Confirm current tax rates with the relevant authorities.