To evaluate your occupancy rate, it is key that you compare it to the average for the area. It can also give you more insight into the overall performance of your rentals. Your average occupancy rate can help to identify if you are pricing your rentals correctly.

Alternatively, you can also multiply the occupancy rate by the average daily rate. To calculate your RevPar, you need to divide your gross rental revenue by the total number of available properties for a specific period. Not only can it help you to compare the performance of your business to that of your competitors, but it is also useful if you manage multiple properties and want to see how your different properties stack up against one another. It is a straightforward metric that gives a more detailed picture than you would get by simply looking at your occupancy and average daily rate separately. RevPar is short for revenue per available room. If there is a significant difference between the net income and total revenue, it is important that you take a closer look at your expenditure. It gives you much better insight into your expenditure. Simply put, to work out your net income per property, you use the gross income and subtract the operating expenses related to running the property. Your net income per property refers to the money that a property has brought in after you have subtracted property-related expenses like insurance, cleaning fees, etc. If you sell other extra services, such as guided tours or extra cleanings, to make more money, these amounts should also be included. To work out your gross income per property, you simply add up all the income that a specific property has generated. To help you get a balanced overview, here’s what you need to include in your short-term rental spreadsheet to stay on top of things. There are several critical metrics that hosts and property managers should keep an eye on. What Should You Include in a Short-term Rental Spreadsheet? It will also help you decide on how much money you can potentially invest in a new vacation rental property. Determine and project your reinvestment strategyĪs things stand, does it make sense for you to apply for a loan to acquire another property? Regular analysis of your rental income will help you to determine if you are ready to grow your portfolio. All in all, it will help you to save loads of hours you would otherwise have to spend on admin work. Armed with your worksheet, you do not have to work out all your numbers from scratch manually. If you have a short-term rental spreadsheet that you filled in throughout the year, tax season will be a lot less stressful. Without accurate numbers, it becomes a guessing game, and you won’t be able to tell if your investment is indeed paying off. To know the health of your business, you need to have data available that you can measure. This way, you can better understand seasonality and adapt your plans and pricing strategy accordingly. You can also use it to get a breakdown of your earnings per month or property. This makes it much easier to see which items you spend the most on and identify areas where you can save. One of the main advantages of using a short-term rental spreadsheet is that you can get a comprehensive picture of your expenditure. A short-term rental spreadsheet will help you to allocate your operating costs helping to streamline your bookkeeping. So, it is quite easy to miss an expense, especially when it comes to one-off expenses. Don’t let any business expense slip past youįrom routine cleanings to monthly mortgage payments to maintenance tasks, there are many different expenses that you need to pay and track. Here is how a short-term rental spreadsheet can help you to simplify the financial side of running a short-term rental business: 1. What Are the Benefits of Using a Short-term Rental Spreadsheet?Ī template that you create in Google or Excel is one of the most cost-effective ways to access all the information that you need in one place. Read on to find out how a short-term rental spreadsheet can help you make better financial decisions and which metrics are worth keeping an eye on. So, to help you make sense of the numbers and prevent any issues down the line, it is a good idea to use some type of short-term rental spreadsheet. If you miss an expense, it could impact your budget, leaving you with less cash flow than you anticipated. įrom utilities and supplies restocking to property management fees or marketing costs, there are plenty of expenses to track. Using a short-term rental spreadsheet to track rental income and expenses is a handy way to stay on top of your bottom line and understand where your business is heading.

Rental property bookkeeping template