Welcome to another vacation rental report for my Calypso condo. As I’ve reported multiple times, bookings have been down generally. But, in looking ahead, my June calendar is fully booked. What’s more is that unlike my other condo, I didn’t feel the need to offer discounts to anyone other than returning guests. So, hopefully, at least for this condo, my results will be comparable to last year. Only time will tell. But, regardless of what happens, I plan to be fully transparent with my income and expenses. So, without further adieu, let’s see how my condo did in May 2023.
Vacation Rental Profit/Loss
So far, my expenses in May have been elevated. So, May was not necessarily a typical month. But, the devil is in the details, so lets see how I did for May.
A. Vacation Rental Income
During the month of May, I earned $6638 in income broken down as follows:
Although $6638 sounds like a lot, my revenue is WAY down compared to last year, as you will see in a minute. This is going to be a crappy year!!!
B. Vacation Rental Expenses
During the month of May, I incurred $8344 in expenses broken down as follows:
Ouch! That’s a lot of expenses in May. Let’s dive in briefly to discuss.
There were a couple of important expenses that I took care of in May. Specifically, I paid $650 towards an approximately $7000 debt I incurred by purchasing a new HVAC system earlier this year. That debt is at a 0% interest rate for 12 months, and so I structured my monthly payments to take care of the debt prior to incurring any interest on my balance. There is a small chance that I may take care of this even earlier than the 12 months, but we shall see.
The other important expense I have that’s worth mentioning is that I took care of a small business credit card balance I had, which was over $1000. I could have spaced out the payments some, but I wanted to bring my balance down to zero and have one less debt to worry about. So, while I expect to incur the above $650 monthly payment for some time, I won’t incur any more credit card payments, since that balance is zero.
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for May was a whopping $1706. Ouch. I started the year off with a massive loss because I had to replace my HVAC system. I was hoping that I could start chipping away at that loss in May, but clearly that didn’t happen.
While it’s still possible for me to end the year with a profit, it’s going to be very difficult.
As shown below, the year-to-date loss is a whopping $10646.
I could cry right now, but there’s no use in crying over spilt milk. This is a business after all and losses will occur from time to time. The key question is, does the business have enough sustainability power to weather the financial storm. We shall see!
Annual Income and Expenses
2022 was my first year when my condo was live on the market, so let’s see how May 2023 at Calypso stacks up against May 2022.
A. Annual Income
Here is the raw data:
As you can see, I made 27.21% LESS revenue this year than I did last year May. 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.
It is what it is, but as mentioned, I am hoping to be able to weather this financial storm.
B. Annual Expenses
We had a bad report for the annual income. Let’s see how the annual expenses at Calypso look from last year to this year.
Here is the raw data:
Wow. It seems like my expenses is in competition with my income to see which can provide the worse news. My expenses in 2023 greatly exceeded my income in 2022. What’s also obvious from the above chart is that my expenses have exceeded my income 4 out of the 5 past months. It’s a very bad start to the year.
The good news is that the year isn’t over. And, there is still time to turn the tide. But, there is also a distinct possibility that I will end the year in the negative. Only time will tell.
Final Thoughts
So far, 2023 has turned out to be dismal. My income is down and my expenses have risen. That is a recipe for financial ruin.
In looking ahead, my calendar for June is fully booked, but as I’ve mentioned, rates are generally down. So, hopefully I can cut into this deficit come June. Wish me luck.
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