Note 3 Rental Agent Contracts
During the year ended March 31, 2011 and subsequently through June 30, 2011, the Company has entered into various agreements with vacation property owners to act as a short-term rental agent on behalf of the owners. The agreements allow for the Company to retain a commission of 10% - 60% of the gross rental booking. Since rental contracts between the owners and renters are cancellable up to the point of use of the owners properties by the renters, commissions are deferred and recognized as revenue once the renters complete their use of the owners properties. The remaining 40%-90% of gross rental bookings, plus applicable taxes paid by the renters, are remitted to the owners upon the renters use of the owners properties. At the time of booking, renters are required to pay a security deposit that is refundable to them after ensuring no damage was done to the owners properties subsequent to use by the renters.