A strong advertised nightly rate can make an investment look effortless. The amount an owner actually retains depends on permission to operate, available nights, costs and how reliably the property can be managed.
Start with permission before projecting revenue. Have your attorney check the acquisition structure, intended use and any development or association restrictions. A property appearing on a booking platform does not, by itself, establish that every requirement has been satisfied.
Separate registration from the rest of compliance
The Department of Inland Revenue’s vacation-rental page announced a registration programme in 2023 and asks non-Bahamian second-home owners to ensure relevant property records and declarations are in order. Its launch deadline is historical. Obtain the current requirements for your operation, including applicable tax and business obligations, rather than treating that old date as today’s deadline or registration as the only step.
Build the operating model from the bottom up
- Availability: subtract your own visits, planned maintenance and realistic downtime.
- Revenue: separate booked nights from available nights, and test more than one occupancy assumption.
- Distribution: include platform, payment and marketing costs where applicable.
- Management: obtain the fee basis and identify services charged separately.
- Turnover: budget cleaning, laundry, consumables and guest support.
- Property costs: include utilities, insurance, taxes, association charges and repairs.
- Replacement reserve: allow for furniture, appliances and systems wearing out.
Keep financing separate so you can see operating performance before debt payments and cash flow after them. Clarify whether quoted revenue figures include taxes or cleaning charges that are passed through. Avoid comparing gross receipts from one property with net income from another.
Ask for evidence, not a best month
Where records are available, request an appropriately documented trading history and understand what changed during that period. A renovated home, new manager or different owner-use schedule may make past performance less comparable. No past year guarantees your bookings.
Ask the manager to walk through a late arrival, a broken air conditioner and a cancelled ferry or flight. Who responds, what authority do they have to spend, and how do you approve a larger repair? Those answers belong in the operating agreement.
Two questions buyers ask
Can I use a normal homeowner policy?
Tell the insurer exactly how you intend to let the property and obtain confirmation of suitable cover. Do not assume personal-use insurance covers paying guests.
Should I buy if the numbers work only at peak-season rates?
Revisit the assumptions. Test quieter periods, repairs and your own stays before deciding whether the risk fits your finances.
Use our Eleuthera and Exuma guides for location context; neither is a rental-yield forecast.
Make your next step clearer
Bring your intended use, budget and timing to a Bahamas discovery meeting with Matt. We can shape the property search and identify the questions to take to your attorney, lender or insurer. Explore the international buyer journey and compare the islands.
Sources and scope
Sources checked 4 October 2026. Practical planning guidance; the professionals handling your transaction must confirm the rules and documents that apply to you.
