It’s another month and so now it’s time for the vacation rental report for July. Although I expect a good report, it is worth noting that I am currently feeling the effects of the so-called Airbnb Bust. The future is not looking too good, but it is what it is. In the meantime, I will just have to accept the good news when I can. But, sufficed to say, this is going to be a very challenging year. Hopefully, this report below is a strong one that will help me weather the upcoming storm. So, without further adieu, lets see how Calypso Memories did for July 2023.
Vacation Rental Profit/Loss
I had elevated expenses last month in June. In fact, my expenses in June exceeded that of my June expenses in 2022. I’m hoping for a better month in July. Let’s see.
A. Vacation Rental Income
During the month of July, I earned $12429 in income broken down as follows:
Booya! This was a solid month! I got a booking at the last minute that enabled the income to exceed $12k. I wish every month was like this but obviously not. July is arguably the busiest month of the year for where my property is. So, it was important for it to be a good month, even with bookings generally slowing down.
Vacation Rental Expenses
During the month of July, I incurred $7489 in expenses broken down as follows:
Not bad. For all practical purposes, the expenses weren’t terribly excessive. They were even less than that in June.
As mentioned in previous post, my cleaning fees are a bit elevated because I am being charged cleaning fees for both properties from the same checking account. I am trying to get that switched, but it hasn’t happened yet. Hopefully, I will be able to do so with no problems.
C. Profit/Loss Statement
Based on the fact that my income exceeded my expenses, my profit for July was $4941. This is a significant profit that I wish I could get every month!
As shown below, my year-to-date loss is $4521.
As you can see, even with a massive profit of $4941, I am still down for the year by $4521. Part of the reason for this massive loss is because, earlier in the year, I had to replace the HVAC system for the unit, which is a $7000 expense. So, the struggle is real as they say.
Annual Income and Expenses
2022 was my first year when my condo went live on the market, so let’s see how July 2023 at Calypso stacks up against July 2022.
A. Annual Income
Here is the raw data:
As you can see, I made 11.22% LESS revenue this year than I did last year July. Of course, it could be worse, but it’s a sign that bookings have been down this year. Not only are bookings down, but it seems like the nightly rate per booking has dropped as well. Moreover, when you couple the fact that expenses for home owners have increased, you get the perfect storm of bad financial news. So, arguably, I am experiencing the Airbnb Bust.
B. Annual Expenses
Let’s see how the annual expenses at Calypso look from last year to this year.
Here is the raw data:
As you can see, I incurred 38.89% MORE expenses this year than I did last year July. Of course, it could be worse.
I do anticipate that my expenses will be elevated over the next 6 months to a year. As indicated in my June Debt Payoff Report, I’m trying to pay back an HVAC system that I bought and the payment I am making is $650 per month.
In any case, my expenses are moving in the wrong direction (annually). This is turning out to be a very expensive year!
Final Thoughts
This was a good report, all things considered. The income for July was great this year, but still less than it was last year. My expenses on a monthly basis continues to be high and that will be the case for the next few months.
There is one more issue that is far more concerning however. As of right now, I have ZERO bookings for August. You heard that right. That’s zero, nada, zilch! In looking at the calendar ahead, I have a 3-night booking in September , ZERO bookings for October, and a 4-night booking for November. So, for me, the Airbnb bust is real. Moreover, I don’t know if I have enough reserves in my account to pay for all my expenses if no additional bookings come in. But, that’s tomorrow’s problem. For today, I will take comfort in the fact that I had a relatively strong month in July.
Finally, based on the empty calendar, it is EXTREMELY likely that I will end the year with a loss. Only time will tell.
What did you think of this post? What do you think about the Airbnb bust?
Let me know your thoughts by commenting below.