The end of every month brings increased stress for some vacation rental owners. Payments, bills, mortgages, and other expenses are all waiting to be paid, distributed and collected. When you’re running a vacation rental business on your own or managing multiple properties, it can feel like all you do is crunch numbers!
Your time, money and energy are of the essence as a vacation rental owner or property manager. When you manage a vacation rental business a million small expenses come up. Pair that with fixed costs like salaries, cleaning fees, and trash services, and you’ve got yourself an accounting nightmare! Your time is best spent reaping the benefits of owning a vacation rental, not worrying about who to pay next.
To minimize the burden and easily keep track of your income and expenses, use a short-term rental accounting worksheet. It’s the best decision you can make, just shy of using Lodgify’s built-in accounting tools. And why is that you might ask? Read more to find out!
Why do you need a short term rental expense spreadsheet?
If you’re renting out a vacation home you might be wondering, “why do I need a short term rental excel template?” Ultimately, the goal for all vacation rental tasks is to make it as easy and painless as possible. When you use a vacation rental income and expense worksheet, you minimize manual accounting work. Adding this spreadsheet to your toolkit just makes sense.
By using a short-term rental accounting spreadsheet that’s already programmed to meet the needs of your vacation rental, you eliminate the need to manually calculate your finances every month. Instead of starting from scratch each billing cycle, you just have to pop in your monthly expenses and earnings then you’re done! No more time wasted, doing the same tasks over and over.
Looking to go a little deeper? Consider using Lodgify’s accounting tools. This handy tool allows you to calculate how much your business is earning and spending sums up your total revenue from all your properties and listing and lets you filter for booking periods. You can also keep track of incoming and outgoing payments. This tool eliminates hours of administrative work and gives you a much deeper analysis of your finances.
Improve staff management
As a vacation rental owner, you are well aware of the many steps that go into room presentation, upkeep during the stay, and clean-up after your guests leave. With each of these steps comes a host of fees and services. To keep the business running smoothly, the payments should be handled swiftly and on time. In the event of late payments or inconsistencies, you can aggravate staff and consequently receive subpar service and your guests deserve nothing but the best!
When you implement a system that consistently keeps payments to your staff members on time, you consequently deliver a better service to your guests. Guest satisfaction equals more bookings which in turn is more money in your pocket.
Don’t overlook any expenses
When you’re managing a property, a lot of the little expenses, like replacing a door handle or deep cleaning the carpets, can really add up. Sometimes, these small expenses are missed which leads to unknowns in your budget. Knowing where all your money is going is vital in running a successful short-term rental business. To keep your customers, employees, and wallet happy, use the vacation rental income and expense worksheet to avoid unnecessary mistakes.
Understand your vacation rental growth
When you don’t have data to understand your business, you can have a feel for how well your business is doing, but you’ll never really know. Eliminate the guesswork by using a short term rental accounting spreadsheet. You can see where the bulk of your expenses are coming from and decide if you want to cut back on any purchases.
In terms of the positives, you can also see how well your business is doing. Track what months are performing better than others and which properties are bringing in the most profits.
An expense template can help you to understand your average rate, but if you want to appropriately price your properties to maximize profits, we encourage you to use our dynamic pricing tool. Lodgify integrates with PriceLabs, which automates flexible prices based on real industry data. Once you have your prices perfectly adjusted to meet your needs, you can pop the numbers into your expense report and see just how well your vacation rental business is doing.
What does the vacation rental income and expense worksheet cover?
Our short term rental expense spreadsheet allows you to write in all the expenses and purchases you’ve made for your vacation rental on a yearly and monthly basis. The template already includes some basic costs, such as cleaning products and property management tools, but you can customize it to meet your needs. For example, if one of your properties has a pool, you can put in the maintenance fees associated with the amenity so you don’t lose track of how much the upkeep is costing you.
Beyond expenses, you can also evaluate your income and income expectations. You can add in the gross income for each month and compare that to your expected earnings. Additionally, you’ll get a rough estimate of what your average nightly rate is for each month.
Lastly, you’ll be able to contrast your expenses to your earnings to better understand profit margins and what percentage of your earnings are going to expenses and fees.
Download our free short term rental expense spreadsheet
You never want to navigate the vacation rental business blindly. Having markers for expenses and earnings helps you to understand where your money is going and what you might need to change to maximize your bookings and income.
Running a vacation rental business is no small feat, so making sure that you’re spending wisely and tracking your expenses is the best way to keep your vacation rental on track. You can start by downloading our free short term rental expense spreadsheet (in Excel format) in the form below. And remember: if you’re looking for more in-depth financial analysis, don’t forget that you can try Lodgify’s accounting tools for free. You can start your 7-day free trial today!
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