Vacation Rental Report – Emerald’s Corner – April 23

Welcome to my first vacation rental report for the new beach condo: Emerald’s Corner. This condo was purchased in early April and, as of today’s writing, is not fully live yet. Specifically, even though I am able to market the unit on my own direct website, I am not able to do so on Airbnb, VRBO, etc. There are licensing requirements that I have to go through. Additionally, there are a number of things that I have to go through to get the unit ready. Sufficed to say that in April, I only incurred expenses and no income. So, I am starting the year negative and I don’t know if I’ll be able to get to positive territory by the end of the year. I do expect next year to be profitable, but only time will tell. So, without any further adieu, let’s see what my first month’s vacation rental report has instore for Emerald’s Corner.

Vacation Rental Profit/Loss

As mentioned, I only had start-up costs for my new purchase. I really wasn’t looking forward to writing this report, but you should know by now that I am an open book with regard to my profit and loss statements.

A. Vacation Rental Income

During the month of April, I earned $0.00 income. Because of that, I didn’t think it was necessary to show you a chart. But, as soon as I start earning income, I will report my income here accordingly.

B. Vacation Rental Expenses

During the month of April, I incurred $3215 in expenses, broken down as follows:

You’ll noticed that I provided a little bit more breakdown than I typically do with my expenses. I will continue to do this. I will try to be a bit more transparent with my rental income as well in the future. So, you can see that out of the $3215, $2675 went to management costs and $540 went to maintenance. Hopefully, this breakdown is helpful to you.

C. Profit/Loss Statement

Based on the fact that my expenses exceeded my income, my loss for April was $3215. What sucks is that I am expecting a loss for May as well! I’m hoping to turn things around come June, but so far, bookings have been slow. AirDNA recently produced an article explaining why bookings are down and what can be done about it. Again, I haven’t really fully marketed my unit yet, so hopefully that will make a difference. Put another way, my first mortgage payment is in June, and I don’t have enough money in my bank account, at the time of this writing, to pay for my first mortgage bill!

Annual Income and Expenses

This is my first year owning Emerald’s Corner. So, I don’t have any income or expenses to compare it to. This section will make a lot more sense come April 2024.

A. Annual Income

Here is the raw data:

Nothing like reporting $0.00 in income. It will get better – hopefully sooner rather than later.

B. Annual Expenses

Here are my annual expenses chart and data:

Here is the raw data:

I can’t wait for a profitable month. But again, this section will make a lot of sense in 2024 when I am able to make an annual comparison.

Final Thoughts

As with any new purchase of real estate, there are bound to be startup costs. I incurred start up costs in April, and I expect May to be much of the same. Heaven help me.

Honestly, I keep calling this new purchase as “My Happy Place” instead of Emerald’s Corner. I may even change the name later. But right now, it’s my financial nightmare. I do have snowbirds already in place for 2024, so that’s good, and I did make a booking in June. In fact, I can’t wait to get on Airbnb and VRBO. I anticipate that will happen in the next week or two. They say patience is a virtue. But, when it comes to making or losing money, time is of the essence.

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