Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

2 of 6
BACKNEXT
Lost rental property income
Lost rental property income
One of Paradise Beach Homes' 140 rental properties in Pensacola, Fla.

With tourists canceling their beach holidays and vacationing fishermen forced to scrap their charter tours, rental property owners are facing a wipeout. In Florida alone, 478 claims were filed by the end of last week for lost rental income, and BP had already paid out $86,439.89.

Kevin Hayes, business manager of Paradise Beach Homes, a property management company that manages about 140 homes, says that "reservations fell off a cliff" a couple weeks after spill. Families looking to rent summer homes have been scared off by images of tar balls and oil-soaked animals in other Gulf areas, but cancellations at Paradise Beach began coming in when the crisis hit close to home.

"On Friday, the first tar balls hit Pensacola. That's when it became real," Hayes said.

Although Hayes has only just begun the claims process, he expects it to be onerous and ongoing. His homes go for $1,000 to $8,000 a week. Multiple that by 140 homes, and the potential loss totals as much as $4 million a month.

The oil spill could prove dismal for property managers, like Hayes, who expected a strong year. "It really is scary. The first four months and advance reservations were great," he said. "We were really on an upswing this year, but now, with this, we just don't."

NEXT: Dispersants

Last updated June 11 2010: 7:35 AM ET
More Galleries
Best business class airline lounges around the world Between August 2015 and May 2016, Skytrax surveyed over 19.2 million customers to find the best airline lounges. Here is what they found. More
What Boeing's new 737 Max 9 has under the hood Boeing unveiled its new, longer 737 Max 9 airliner earlier this month, the second member of the updated single-aisle jet family. The first aircraft will deliver to airlines starting in 2018. More
Toy Fair surfaces holograms, robotic animals, dolls for boys The Toy Industry Association's annual fair revealed countless tech-enabled toys -- and some fresh takes on old classics. More

Special Offer