Expectations vs reality explained. In this episode, I’ll hep set vacation rental realistic profit benchmarks.

Ever celebrated a fully booked month… then opened your bank account and felt confused?
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You’re not alone.

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Many vacation rental owners feel busy but don’t feel profitable. And that gap creates stress. Quiet stress. The kind that shows up at 11:30 pm when you’re replaying numbers instead of sleeping.

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Running a vacation rental isn’t about throw pillows and five-star selfies. It’s about vacation rental profitability—knowing, with calm certainty, whether this business actually works.

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In this episode, we’ll strip away the guesswork. You’ll learn how to track the numbers that matter, spot hidden profit leaks, and regain confidence in your decisions—without drowning in spreadsheets.

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If this topic hits close to home, the Vacation Rental Resolutions Podcast and YouTube channel dive even deeper, with real host stories and plain-English breakdowns. Subscribe now, so you’re not figuring this out alone.

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And near the end, I’ll share the single metric that changed how I price everything.

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Before we start, have you ever felt busy—but unsure if you were actually profitable? Let me know in the comments.

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Understand Your Real Costs (Not the Polite Ones)

Most owners track the obvious costs. Mortgage. Cleaning. Platform fees.
The trouble lives in the forgotten ones.

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Think about it:
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Have you ever said, “It’s only a small expense”? Those add up fast.

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Here’s what actually counts:

• Mortgage or rent

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• Utilities (that always-on hot tub isn’t shy)

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• Cleaning and laundry

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• Maintenance and repairs

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• Platform fees from Airbnb, Vrbo, or Booking.com

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• Insurance, licences, permits, and taxes

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And then there’s the awkward one.
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Your time.

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If you’re answering guest messages, fixing Wi-Fi, or managing cleaners, that’s labour. Yours. And time always sends an invoice.

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A host in the Okanagan once told me she was “doing great.” After tracking her hours, she realised she earned less than minimum wage. Busy? Yes. Profitable? Not even close.

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The Only Profit Formula You Actually Need

Numbers shouldn’t feel like punishment.

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Here’s the simplest formula that works:

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Profit = Gross Revenue – Operating Expenses – Opportunity Cost

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Opportunity cost asks one question:
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What could this property—or your time—earn elsewhere?

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Long-term rental? Another investment? More free time?

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Why does this matter? Because profit isn’t what’s left over. Profit is what justifies the effort.

If you want a ready-made tracker, the Mastering Vacation Rentals: Start, Manage, & Thrive course includes a clean cost template. No jargon. No shame.

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You’ll also hear this framework broken down step-by-step on the Vacation Rental Resolutions Podcast—worth a listen during your next turnover.

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Occupancy Lies. Revenue Tells the Truth.

Let’s clear this up.

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A full calendar feels good.
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But full doesn’t always mean profitable.

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Would you rather:

• 30 nights at $100, or 20 nights at $250?

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Less wear. Fewer cleanings. More margin.

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This is where many owners get stuck. They chase occupancy instead of revenue per available night (RevPAN).

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RevPAN shows how hard your property works for you.

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Once you see it, you won’t unsee it.

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I shared a personal example on the Vacation Rental Resolutions YouTube Channel:
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I lowered February prices by 15%. Bookings jumped 40%. Net profit went up. Quiet season fixed.

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Price smart. Not emotional.

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Track Income Like an Adult (No Judgement)

A $2,000 booking isn’t $2,000 in your pocket.

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Between platform fees, taxes, refunds, and discounts, net income shrinks quietly.

Track:

• Nightly rate after platform cuts

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• Add-ons (pets, late checkout, extras)

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• Seasonal surges and dips

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• Refunds and discounts

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Tools like Hostaway, Hospitable, or OwnerRez help—but a simple spreadsheet works if you use it consistently.

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Long stays sound great, right?
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Sometimes they are. Sometimes they quietly underperform.

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Run the numbers before you say yes.

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You’ll find more practical walk-throughs on VacationRentalResolutions.com, especially around pricing sanity checks.

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Know Your Break-Even Number (Sleep Better Instantly)

This number changes everything.

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Break-even nights = Monthly expenses ÷ Average nightly rate

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That’s it.

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Once you cross that line, every booked night becomes profit.

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Why does this matter? Because confidence replaces panic.
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You stop chasing every booking. You price from calm, not fear.

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If I had a dollar for every owner who said, “I only need a few weekends a month,” I’d be able to fund your next renovation. A few weekends rarely pay real bills.

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Hosting should bring joy, not just job lists.

Get the “The 7-Day Vacation Rental Jumpstart” download.
Seven bite-sized steps to a rental guests rave about—without burning out.

Get your copy now! You can find a link in the show notes.

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What’s one expense you ignored at first, then regretted?

Drop your answer below.

Here Are Your Key Takeaways

1. Track every cost, including time
2. Occupancy ≠ profitability
3. Know your break-even nights
4. Use RevPAN, not feelings
5. Price from data, not fear

In Conclusion

Profit tracking isn’t about spreadsheets.
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It’s about peace of mind.

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When you understand your vacation rental profitability, decisions feel lighter. Slow seasons lose their sting. Growth feels intentional instead of risky.

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If you’re ready to go deeper, the “Launch Your First Vacation Rental” course offers in-depth guidance into setting expectations.

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For more insights like these, head over to the Vacation Rental Resolutions blog. A great next read that pairs perfectly with this article is “Setting Realistic Goals For Your Vacation Rental Business” Episode #38

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You can find the post on the Vacation Rental Resolutions website.

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If you want ongoing support, subscribe to the Vacation Rental Resolutions Podcast and YouTube channel. They’re built for owners who want clarity without chaos.

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And if you like what we are doing, feel free to buy us a coffee.