Making it through the Off Season Financially

Bed & Breakfast / Short Term Rental Host Forum

Help Support Bed & Breakfast / Short Term Rental Host Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

ChrisandShelley

Well-known member
Joined
Apr 13, 2014
Messages
401
Reaction score
29
Does anyone have a specific rule of thumb for what they save for off season expenses?
 
My answer is "not really". In the early years I knew we had a mortgage payment at the end of the year and had to watch the bank account to be sure there would be enough to cover the payment, perhaps it was an advantage that we started during a slow time and knew what to expect the next year.
Now after many years, any excess goes in saving account as it earns better interest and so that we know we have a cushion if needed which it often is needed, seems all the major bills, taxes and insurance arrive during the ending of the slow season when things are tightest.
 
I keep back the amount of taxes , insurance plus other large bills that hit in February. That money is in a separate account
Other than that, not really. We do also have month to month rentals.
 
Everything we don't spend in peak season gets put aside for off season! I try to exit the off season with a tidy sum still in the bank.
 
Keep collecting deposits for your future reservations!.
thumbs_up.gif

I charge 25% deposit, but I know other businesses that charge 50% for that same reason, to basically flatten out their income over the year.
 
We built up and retain 6 months operating capital. We thought we might have to tap that with all the drama being created on the national and world news about the volcano, but we have managed to pull through on the strength of some recurring business. Every area is so different, but any kind of business to business relationship that is available is one way to pick up shoulder season income.
 
Thanks for the help. Our last 3 winters have not been an issue, but we're a little worried about this one. We'll be ok, but it's good to get some fresh ideas.
 
Back
Top