collection of rental income

[Michelle703]

I am a US citizen and have rental property in Italy.  My basic question is how does a host account for fluctuations in the Euro.  If my rent is $1,000 for a week and a week is booked in January when the Euro is at 1.2% and the renters pay in July and the Euro is at .95% -- Is this fluctuation adjusted for anywhere?  Also, whould it be in my benefit to open a bank account in Italy and have the funds sent there rather than my US account?  Thanks so much for any info you may have

[Linda108]

Hi @Michelle703  Unless your property qualifies for a split or delayed payment, the payment is collected at the time of the booking and the current exchange rate is applied.  So even if the reservation is 3 months later, the payment is at the time of the booking.  Hope this helps