Welcome to the second vacation rental report of the year on Calypso Memories. What’s interesting is that I am actually staying at my own condo while I’m writing this post. One of the benefits of a vacation rental is that I get to use it myself whenever I want. Currently, I’m here with my mom. So, we get to spend some quality time together outside of our house. But that’s not why you’re here. February is still considered the slow season. I am very excited to see how March does but of course, I can’t put the cart before the horse. My goal for this year is to keep my expenses to a minimum. Time will tell. So, without further adieu, let’s see how Calypso Memories did in February 2024.
Vacation Rental Profit/Loss
Let’s see whether I made a profit or incurred a loss in February 2024 at Calypso Memories.
A. Vacation Rental Income
During the month of February, I earned $2413 in income broken down as follows:
As mentioned, February is still the slow season. So, I had snowbirds in February just like I did in January. The rent is the same so why did I earn more in February than January? The answer lies in the way I do my accounting.
The snowbird in January only paid for January. However, the snowbird in February stayed for a few extra nights in March. All of those nights in March gets counted in February’s income. If the income started in one month and carries over to the next month, I count it all in the first month. It all balances out at the end.
B. Vacation Rental Expenses
During the month of February, I incurred $6398 in expenses broken down as follows:
Well, this is somewhat depressing. I incurred more expenses in February than I did in January. I pay my HOA quarterly, starting in January, and so it made sense for my January expenses to be so high. But what about February? Let’s take a closer look.
I purchased seasonal beach chairs for my guests. That was over $1600. That’s an amenity I provide so that the guests don’t have to spend $50 a day to purchase beach chairs when they get to the beach.
Additionally, I had some maintenance items that I had to take care of, including a new tv ($490) and a new lock ($740.3). One quick note about this new lock: there is a possibility that I might not need it. If I don’t need it, then I can return it for a full refund! That’s one of the reasons why I am here at my condo – trying to fix my current lock, and if I can’t, then I’ll replace it with the new lock I just purchased.
Of course, I am still paying on my HVAC ($650), but the good news there is that I already made my last payment on this on March 1st. But, all these expenses add up with my routine expenses to an amount over $6000. It hurts, but it was all necessary.
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for February was $3984.
As shown below, my year-to-date loss is $6807. This gets updated every month.
Obviously, I am starting the year at a loss. But, I am still optimistic for the future.
March is the beginning of the high season, although it really doesn’t pick up until April. In any case, I am hoping for a profitable month in March so I can start chipping away at this year-to-date loss. Regardless of how the year turns out, I am really hoping and expecting that it will be much better than last year for sure. Again, only time will tell. Despite the year-to-date loss, so far so good.
Annual Income/Expenses
Let’s see how February 2024 at Calypso Memories stacks up against February 2023.
A. Annual Income
Let’s see how the annual income at Calypso Memories look from 2024 to 2023.
Here is the raw data:
A pleasant surprise. Thanks to those few extra nights my Snowbird guest stayed in March, and the way I do my accounting, I earned more income this year than I did last year. In Fact, this is the most income I’ve earned in February since I bought the condo. The income is trending in the right direct and so I’ll take it.
B. Annual Expenses
Let’s see how the annual expenses at Calypso Memories look from 2024 to 2023.
Here is the raw data:
Expenses are the bane of my existence. As you can see, I incurred more than 100% more expenses this year than I did last year. Not only than, but I’ve incurred the most expenses since I bought the condo. The trend is moving in the wrong direction. This is a bad start, especially since my goal is to keep my expenses to a minimum.
It’s still early in the year and we have a lot of time to make improvements. So, I might have lost the battle in February. but there is still plenty of time to win the expenses war.
Final Thoughts
The slow season reports are rarely exciting. My income is relatively low because I rent to snowbirds. I tend to incur losses during these months. If I’m doing this right, the goal is to make enough income during the busy season to help cover the expenses during the slow season. What I really want is for the condo to start paying for itself again and I think that will happen by April.
Although my expenses were high this month, and although my goal is to keep expenses low, I will not sacrifice my guest experience. So, if something does come up, my inclination is to take care of it. But, I’ve already done a lot of preventative maintenance on the unit (like purchasing a new HVAC), so I’m hoping there’s not much more preventative maintenance to do.
Regardless of whether I make a profit or a loss, you can be assured that I will report it here on this blog.
What did you think of this post?
Let me know your thoughts by commenting below.