I recently completed my Calypso Memories June Vacation Rental Report and it was dismal. So far I’ve incurred a massive loss since the year started. I’m hoping that the report for Emerald’s Corner fairs better. June is in the heart of the busy season and this is the time that I need to make money so I can survive the off-season. The problem of course is that my expenses for Emerald’s Corner are super expensive, in large part due to my high mortgage payment. But there’s no use crying over spilt milk. I made my bed and so now I must sleep in it. So, without further adieu, let’s see whether June was a profitable month.
Vacation Rental Profit/Loss
Crossing my fingers that June was a normal month. Let’s see.
A. Vacation Rental Income
During the month of June, I earned $10430 in income broken down as follows:
This is the first time I’ve crossed into 5 digits in a single month with any of my properties since the year started. This is encouraging. Because this is a newer property, I gave a lot of discounts in June. Come next year, I won’t be offering as many discounts that I did this year.
That being said, I am mindful of the fact that my expenses are generally high for this property, and while June was a great month in terms of income, there are still 11 more months of the year. So, I know I won’t be able to do this every month. But I’ll take the good news when I can get them because so far, they haven’t been common in 2023.
B. Vacation Rental Expenses
During the month of June, I incurred $7156 in expenses broken down as follows:
For what it’s worth, my expenses in June were pretty normal. As you can see, my mortgage payment alone for the month is $5218. So, every month, that’s going to be the minimum.
As I was doing this report, I noticed that there are no cleaning fees for the month. Of course, my property is cleaned after each guest. Apparently, I’ve been using one checking account for both properties. That’s why my cleaning fees for Calypso Memories have been super high. Although it all balances out at the end, I like to keep things separate. So, I am working to rectify the situation. That hopefully should be fully rectified by the time I do my vacation rental report for August.
C. Profit/Loss Statement
Based on the fact that my income exceeded my expenses, my profit for June was $3273. Considering all the discounts I gave in June, that’s not a bad profit. More importantly, it helps to put a dent in the loss I’ve experienced since I bought the property in April. Although the numbers are a bit off, because of the lack of cleaning fees, as of right now, my overall year-to-date loss is $1649 as detailed below:
What’s really encouraging is that July is arguably the business month of the year. So, I am hoping to have a repeat for July. Granted, I am having issues with some guests and having to provide some refunds, but overall, I am hoping for a profitable month.
Based on where I am right now, I fully expect to be profitable in July. But the challenge is going to be what happens after that. There is enough money in my account to cover two months of mortgage payments. But, as we get through with the busy season, I still have to pay that massive mortgage! It is the reason why I will try to refinance as soon as I am able.
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 June 2024.
A. Annual Rental Income
Here is the raw data:
Hopefully, the revenue will continue to be strong over the next several months.
B. Annual Expenses
Here are my annual expenses:
Here is the raw data:
I’m glad I had 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
June was a normal month, relatively speaking. My expenses are high, but normal. Moreover, because my year-to-date loss is only $1649, I fully expect to be in profitable territory come July. However, while the reprieve is nice, there is still a greater than 50% chance that I will end the year with a loss.
In looking at next year, my furniture bill that I pay $750 a month will be paid off. Moreover, I won’t be offering so many discounts during the busy season. But, unless I can refinance my mortgage, it’s going to be very difficult to turn a profit by year’s end. Only time will tell.
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