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
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
Black Friday 2015 in pictures Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More

Special Offer