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| Rental Management Fees |
| If you're planning on buying overnight rental property in beautiful East Tennessee, you should be aware that overnight rental management companies have different rates for splitting gross rental receipts with the property owners. |
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| Granted, it takes expertise, time, money and occasional headaches to run a rental management company, but here are some examples of how the management fee can vary depending upon which overnight rental management company you choose to use. |
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| Here's a one month example |
| If a rental cabin generates $3,500 in gross receipts in 1 month, what happens? |
| Split Rate |
Distribution of Gross Receipts |
$ Amounts |
| 70/30 |
70% to owner |
$2,450 |
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30% to rental company |
$1,050 |
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| 60/40 |
60% to owner |
$2,100 |
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40% to rental company |
$1.400 |
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| 50/50 |
50% to owner |
$1,750 |
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50% to rental company |
$1,750 |
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| The property owner has additional monthly costs to deduct before arriving at
a net figure for paying toward any mortgage: |
| Cable/Satellite |
| Electric |
| *Home Owners Association Fee (Depends upon subdivision) |
| Linen |
| Overnight Rental Insurance |
| Pest Control |
| Taxes |
| Water |
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The Fair Housing
Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial
status, or disability. |
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