How to set up my vacation rental agency

Giroin

Hello,

I got a vacation rental agency, let me explain a few important things on how it works.

We have several channels like Airbnb etc. that we use to promote and rent our properties. One of these is also our own website. We get payments either one or two installments that appear in our bank statements in different time depending the contract we have with our partner. We only pay our vendors on the check in day. We get paid by commission just the day we pay our vendors.

Here is a more detailed example:
We have a reservation on February 1st, we get 200 EUR as deposit payment on March 1st we get the balance payment 700 EUR and the whole reservation is now paid. On April 1st we pay the vendor (owner) 850 EUR while we keep our commission 15% - 150 EUR. So is like we keep the money in our account until the vendor get paid but these money will be out soon and is not our actual profit. For some of the reservations we got two type of comissions (profit) depending the contract with vendors.

Any advice on how to set up this business model would be really helpful. I am not interested at the moment to use the invoices feature but I can do that if it's necessary to do the job.

Thanks,
Giorgos

troympapa

Wouldn’t you just record the revenue of 850. Then you have some sort of management fee expense of 700. The profit and loss statement then nets that down to the 150. Other option is book the income you hold as a liability and record the 15% commission as the only revenue and reduce the liability when you pay the other owner. That also gets you to the same place without recording an extra 700 as revenue which is what I think your trying to get at.