This is a recent addition to the dividend portfolio blog. Much like my monthly dividend income reports, I’ve decided to report on the status of my Vacation Rental on a monthly basis. Part of the reason for this is because I hope to eventually use the profits from the vacation rental to purchase additional shares of dividend stocks. It adds transparency to what I am invested in, and quite frankly, it’s fun! I don’t anticipate I will make a profit every month, or even most months, but who knows? What I do anticipate is that I will be documenting my progress along the way. So, without further adieu, let’s see how much vacation rental income I earned in June 2022.

Vacation Rental Profit/Loss

Let’s see how much profit/loss I made for the month:

A. Vacation Rental Income

During the month of June, I earned $12,095 in short-term rental income as shown below:

Wow! That’s nearly a 33% increase from the previous month in an amount that exceeds $12k. This is a new all-time high and the highest revenue I’ve earned so far. So, June was incredible in terms of revenue generated for the month.

Even though I chose to compare June’s revenue to May, my preference is to do annual comparisons, rather than month-to-month. But, since this is my first year, I don’t have annual numbers to compare at the moment.

Also, the condo is in a location that is seasonal in nature. For example, take a look at my income during January and February during the off-season. That was low compared to the high income I am reporting for June. Granted, I had snowbird guests during January and February and so my income was capped at the $1800 per month mark. I am contemplating not having snow birds during those months next year to see how much income I can make during that time. But I digress.

June was impressive, but as a reminder, that is only one side of the equation.

B. Vacation Rental Expenses

During the month of June, I incurred $6,071 in Expenses as shown below:

My expenses in June were higher than those in May, and they were slightly elevated than normal. I incurred $1976 in marketing expenses for the condo. This was a one-time cost (annually), and it allows the condo to be marketed on other platforms other than just Airbnb and VRBO.

Although I’ve received numerous inquiries from other niche platforms, I haven’t yet received any bookings. I’ll reassess this expense next year when it comes time for renewal. If I am able to generate at least one booking from any platform, I will keep that platform. If not, then the platform may be on the chopping block. So, only time will tell.

C. Profit/Loss

Based on the rental income and expenses for June, I incurred a profit for the month. The total profit was $6,024. I’ll take it. However, what’s more impactful to me is the overall profit since the year started. Year-to-date, the total profit experienced so far is $6,616. I am very pleased with the results so far.

If you recall, I am managing the beach condo all by myself, and so I don’t pay a property management company. Eventually, at the end of the year, I might decide to pay myself 10% of the profits for my efforts, but we will see. I’ll decide on that later on, but regardless, that seems like a good problem to have.

Annual Income and Expenses

As this is my first year investing in a vacation rental, I don’t have any annual income to compare it to. However, for purposes of this section, here is a graphical representation of the revenues earned in June 2022 in relation to the revenues earned in previous years:

Here is a graphical representation of the expenses incurred in June 2022 in relation to the expenses incurred in previous years:

As you can see, the charts are exactly the same (except in style) as indicated above. This annual comparison section will make a lot more sense come 2023 when I am able to make a comparison. I will be able to see a trend not just from month-to-month, but also from year-to-year.

Finally, I am mindful that as we are possibly heading to a recession, the vacation rental market might be one of the first industries to be negatively affected. So, I am under no illusions that I may not be able to rely on these revenues forever. In fact, there is no guarantee that I will be able to post higher numbers next year. But thankfully, I am still in a position to be able to afford the expenses on my own, if push comes to shove. It will be tough and I may have to live on beans and rice, but it is one of the reason why I chose this particular unit as the first one to purchase.

Conclusion

June was a great month for the condo. The monthly income greatly exceeded the expenses incurred. For what it’s worth, I count income for the month if the first night of the guest’s stay occurs in that month. So, for example, if I tenant books the condo from June 29 to July 10, I still count all that revenue for June. It makes things easier and it all balances out at the end.

In any case, I am hopeful that the condo remains profitable in the next few months. The goal is to make enough money in the busy season to cover the expenses of the condo during the off season. I am still working on my revenue management strategy. So far, I haven’t taken any money out of the condo. All the expenses incurred have been paid for with the revenue generated from the condo. This excludes the initial capital to both acquire the unit, and do some of the early expenses to get the unit ready, like redoing the flooring.

Finally, I am expecting that the next few months (beginning in September) will likely not produce as much profit. But, if I can just make enough to cover my expenses, I’ll be golden. In other words, this would have proven to be a successful and profitable year. So stay tuned to see how it turns out.

What did you think of this post? Let me know your thoughts by commenting below.

The post Vacation Rental Report – June 2022 appeared first on Dividend Portfolio.