This is the most difficult area of vacation home ownership financials. The occupancy level that an owner can expect to achiev, and the average net rental income per week are dependent on many factors. One is whether the owner is marketing the home and managing bookings directly, and how well or badly he is doing this, or whether he is relying entirely on a third party property management company to supply bookings, or a combination of both approaches. Another is the inherent popularity of the community and of the specific features of the property.

So there is no easy answer to 'how much income can I expect to get?'. The following figures are no more than broad guidelines, based on a number of assumptions; that the home is in a popular location, that it has features that are popular with renters, and that the home is effectively marketed. For more on these and other aspects of vacation home ownership, check out our Absent Owner' Guide.

The rental figures are net income to the owner per week. So if the rental comes from a management company, their commission or referral fee is already taken out. The figures are also net of sales and tourist taxes, and of any additional charges for pool heating, etc. There will be many homes that are rented at rates well below the rates I have given, and these homes may achieve a higher occupancy level. Similarly there are owners who charge well above average rates, and accept a lower occupancy level.

RESORT COMMUNITIES (eg Windsor Hills, Windsor Palms)

Condos, townhomes - $100 to $125 per night average, 70 to 80% occupancy

4/5 bed pool homes - $125 to $175 per night average, 60% to 70% occupancy

6/7 bed pool homes - $175 to $250 per night average, 50% to 60% occupancy

OTHER SHORT TERM RENTAL COMMUNITIES

Condos, townhomes - $90 to $110 per night average, 60% to 70% occupancy

4/5 bed pool homes - $110 to $140 per night average, 50% to 60% occupancy

6/7 bed pool homes - $150 to $225 per night average, 40% to 60% occupancy

If it is important to the owner that rental income should cover all of the costs of ownership, then I would reduce these income estimates by 10-20% in the planning stage, and then if the actual numbers achieved turn out to be higher this is a bonus.

Can I get financial information from the seller, or a profit and loss account?

Few sellers will offer to provide figures to illustrate their success or otherwise with the property. A buyer should not expect to be given this information, nor should he rely on it if it is given. If the home has been on the market for a long time the seller is likely to have taken the home partly or entirely out of the rental program to allow prospective purchasers access to view it, so the recent history is not representative, and the seller won't want to disclose it.

Profit and loss accounts are never offered by sellers, as a vacation home is not considered to be a pure business in accounting terms, and there are factors which would make a standard profit and loss statement meaningless in most cases.