Decoding Rental Income Reports: Understanding the Numbers

Why Rental Income Reports Can Be Misleading And How to Get the Full Picture

When advising investment clients on potential rental income, real estate agents often rely on reported payout totals from platforms like Airbnb and Vrbo. However, these numbers can be misleading if not properly understood. If you’re comparing rent history or rental projections, it’s critical to know exactly what’s included in the numbers—and what’s not.

Understanding Airbnb and Vrbo Payouts

• Airbnb Payouts: When Airbnb provides a total payout, it includes more than just rent. It factors in cleaning fees, parking fees, pet fees (if applicable), and any extra service fees. This means the total number presented is not strictly rental income—it’s a mix of different charges that may not apply to every stay.

• Vrbo Payouts: Vrbo’s numbers include everything Airbnb does, plus taxes, which typically add another 16% or more to the total. This further inflates the number and makes it look higher than the actual rental income.

The Problem with Owner-Reported Data

Self-managed property owners may provide spreadsheets of numbers or simply give a total revenue figure—but who knows what’s included or excluded? Their reported income may account for taxes, cleaning, and other costs, or it may not. Without proper clarification, using these numbers for investment comparisons can lead to inaccurate projections.

How iTrip Vacations Reports Rent

When you receive a rent projection from iTrip Vacations, what you’re getting is strictly gross rent—the actual rental income before cleaning fees, taxes, and other add-ons. This is a key distinction. If you compare a payout total from Vrbo directly to an iTrip rent projection, you’re not making an accurate comparison.

Why This Matters for Real Estate Agents

If you want to provide the best guidance to your investment clients, you must ensure you’re comparing true rental income and not inflated totals that include additional fees and taxes. A Vrbo payout total is not the same as gross rent, because owners still have to pay for cleaning, parking, taxes, and other expenses from that payout.

The Bottom Line Before presenting rental income figures to your clients, take a closer look at what’s actually being reported. Ask the right questions, clarify the numbers, and ensure you’re making accurate, apples-to-apples comparisons. This diligence will help your clients make smarter investment decisions—and help you build trust as a knowledgeable, reliable real estate advisor.

FEBRUARY 2025