As I had explained in my previous post for tip 5 for 9 Must-Have Tips for Running your Vacation Rental like a Business

A vacation rental is both a fun place to stay and an investment opportunity. And a part of that responsibility is ensuring that you run your business smoothly. When you own a vacation rental, you want to have good cash flow, avoid tax penalties, stay organized, have a great presentation, minimize risk and ensure your customers are satisfied.

I want to continue to try and provide you with all the info you may need to help guide you through the jungle of beach vacation property rental pitfalls.

Tip 6

Individuals and businesses alike are subjected to taxes and permits. Vacation rentals are frequently required to also collect a transient occupancy tax (TOT). In my experience, the County ties this tax to a permit that I file yearly. This permit allows me to own and rent my vacation home legally at a rate of 10% of nightly rent, plus cleaning fees (this is passed onto the guest). The process only takes me 30 minutes each quarter and consists of running a report of my bookings. Then, I write a check to the tax assessor and drop it in the mail. If filing or collecting these permits/taxes is not something you are comfortable with, there are companies that will handle the entire process for you. One such company, MyLodgeTax, will do so for around $10 per month.