Another month has gone by and so now it’s time for the Vacation Rental report for Calypso Memories. As you may recall, Calypso Memories is my 1 bedroom 2 bathroom beach condo. We had strong rental income for July. But ultimately, according to the July rental report, we posted a year-to-date loss of $4521. While I don’t expect to be in profit territory anytime soon, I do hope that the year-to-date loss moves in the right direction. But, we will see shortly whether or not this is realized. So, without further adieu, let’s see how Calypso Memories did during August 2023.
Vacation Rental Profit/Loss
Let’s see whether I made a profit or incurred a loss in August 2023 at Calypso Memories.
A. Vacation Rental Income
During the month of August, I earned $2190 in income broken down as follows:
$2,190 in income for the whole month is LOW! Basically, I only had ONE booking! You heard that right. I only had one booking. Sufficed to say I for one am feeling the Airbnb bust. Whether it’s because of oversupply, or lower demand, I am not sure. Regardless of the reason, things are pretty rough right now for this beachfront vacation rental.
B. Vacation Rental Expenses
During the month of August, I incurred $5920 in expenses broken down as follows:
Wow, my expenses were high in August. There really weren’t any standout expenses. Even though my expenses were high, for what it’s worth, they were lower than April, May, June, and July expenses. So, it could have been worse.
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for August was $3730. This is a significant loss and it only adds to the year-to-date loss that I have already incurred this year.
As shown below, my year-to-date loss is $8251.
I could cry right now but supposedly, there’s no use crying over spilt milk. It is what it is. However, what’s even scarier than the year-to-date loss is that at the time of this writing, my calendar still has openings for September and it is completely empty for October.
This is a tough year indeed for Calypso Memories.
Annual Income and Expenses
2022 was my first year when my condo went live on the market, so let’s see how August 2023 at Calypso Memories stacks up against August 2022.
A. Annual Income
Here is the raw data:
As you can see, I made 54.88% LESS revenue this year than I did last year August. 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 Memories look from last year to this year.
Here is the raw data:
As you can see, I incurred 11.76% MORE expenses this year than I did last year. 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
Wow. This was not the report I wanted to write. There was absolutely no good news in this report.
That being said, Florida was recently hit by Hurricane Idalia. Thankfully, Panama City Beach was spared, so none of my condos incurred any damage. I’ll take it!
In looking ahead at the Calendar, I am not optimistic that I will end the year in a profit. Afterall, we are approaching the slow season and much of my calendar remains empty. Only time will tell to see how I end the year, but I am hoping to chip away at the loss with each new booking.
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The post Vacation Rental Report – Calypso Memories – August 2023 appeared first on Dividend Portfolio.
