Rental Management Gross Revenue Split

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Hi, I’m Dave Cole with Prudential Colorado Properties in Vail and Beaver Creek, Colorado. Today we are discussing why the rental management gross revenue split with a condominium owner is at 35% -50%. The reason that this split sounds so high is because the person asking the question has a reference point of the rental commission to rent a single apartment unit. The only expense involved is the rental commission and perhaps some advertisement, which typically costs 6% - 15%. Such expenses such as maid service, supplies, linens, credit card commissions and travel agent fees are not involved or included. However, in renting a condominium by the night with professional rental management you are effectively in the night-to-night hotel business. This means that you now have the expenses of daily maid service, advertising, credit card fees, travel agent fees, linens and processing, etc. These quickly add up to 35% - 50% of the gross rental income which needs to include a profit for the rental manager.

For further information, please call me, Dave Cole at Prudential Colorado Properties in Vail and Beaver Creek, Colorado, at (970) 331-6867 or email me at Dave@DaveCole.com.