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.
Pay your fees and taxes
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.