Revenue Defined

When it comes to vacation rentals, the term “revenue” can be a bit of a moving target. In Myrtle Beach, it’s not unusual for different people to use “revenue” in different ways—and that can lead to a lot of confusion for owners and investors.

Why Does This Matter?
Because not all “revenue” is truly money in your pocket. For example, let’s say you have a one-bedroom condo that’s advertised as bringing in $40,000 a year in revenue. If that number includes $12,000 to $14,000 in housekeeping fees that you don’t actually keep, then the real revenue you can rely on is more like $26,000 to $28,000. That’s a big difference when you’re planning your investment.

Another Example:
Consider the impact of sales tax. If a quoted revenue figure includes the 13% sales tax that guests pay, that number might appear higher than it really is. For a $40,000 rental, 13% in sales tax is about $5,200. If that tax is included in the “revenue” figure, you’re not actually pocketing that money—it’s going straight to the state. So the real income you can count on is that much lower.

A Note of Caution:
You may sometimes encounter parties who showcase very large revenue figures as a selling point. While these numbers might look impressive, they can sometimes include items like taxes and fees that don’t reflect the actual income you’ll receive. At MPG, we believe in being transparent so you understand exactly what goes into those numbers.

By understanding what “revenue” really means—and what it doesn’t—you can make better decisions and avoid surprises.