The August numbers are in. Here’s a breakdown of my short term rental financials for two of the short-term rentals I currently have online.
Short Term Rental Financials Summary
As you can see by the numbers p1425 was not great. Yes, there was some profit but I like to have a minimum of $800. This is because I got my first 28+ night stay which offers a higher discounted nightly rate. This month the property was 90.32% occupied with only 2 stays.
The second property (p1124) did much better in its 2nd month of being online. It was able to get $2,912.65 after expenses. I had 4 stays for this property for this month. But understand the report is based on the arrival date for the guest. I also got a 28+ night stay for this property that bleeds into next month. Taking that into account we can see that while the numbers look good for this month next month may not look as great.
Things Are Slowing Down
We have entered into a slow period. The bull run can’t last forever in with short-term rentals. There are high and low parts of the year. This is my first year so we’ll see how I fair going through it. This is why it’s good not to blow your profits as soon as you make them. Just like you should have a personal emergency fund keeping a few months saved to get through emergencies in business is also prudent.
Real estate is local and vacation rentals are seasonal. There are numerous ways to see what’s going on in your area. I use a combination of manual research in Airbnb’s site and analytics provided by OwnerRez, PriceLabs, AirDNA, and AllTheRooms.Analytics to gauge what’s going on.
Furthermore, the information provided above comes from OwnerRez which is the tool I use to manage my vacation rentals.
Experiments with Financial Independence
Additionally, I started short-term renting as an experiment to add more cash flow on my journey to financial independence. I previously rented properties long-term, managed them all myself, and wanted to see if the results touted by others online were realistic or hyped-up bull. This means that I’m still learning and that all the information I provide on this blog is based on either what I’ve learned going through the process myself or learned from others who do it.
The long stays in these two properties are giving me time to get my 3rd property online.
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