Do you want to know the success formula of starting a serviced apartment?
My Pain:
I was struggling to get every bit of useful info that would help me start a service apartment business. Would scramble to get info on every bit of do’s & Don’t I got. Did you feel the same when you started?
My experience:
I started with meeting many who were already into the business of serviced apartment.
Their Response – don’t venture into it at this stage; it’s very competitive; already saturated market.
My conclusion was every business is competitive, but I followed my heart and plunged into it.
Here is the step by step guidelines on how to start a Service Apartment Business:
Step 1: Map Potential areas for starting a Service Apartment
Don’t just start a service apartment just because you have a vacant flat or a bungalow in a posh locality in that city.
First map CBD area, IT Hubs & Industrial hubs in your city. You can also validate by google search serviced apartments in that city e.g. “Serviced Apartment in Bangalore” to make a list of areas where you have clusters of serviced apartments.
Step 2: Identify area to Start a Service Apartment
Pick the potential area which is closest to your home and the area which you are more comfortable with eg: I stay in Indiranagar Bangalore and I find the two closest options are either Koramangala or Marathahalli. I preferred Koramangala as its an upmarket residential area.
Google serviced apartment in the identified area where you intend to start: e.g. Service Apartment in Koramangala and make an exhaustive list of all serviced apartments & hotels.
Step 3: Visit all the Serviced Apartment in Identified area
Plan a visit to all these serviced apartments:
Prepare your visit questions and try getting answers for following.
- Pricing of room Single/Double occupancy.
- Pricing for long stay to understand what discounts they go up to.
- Observe their furnishings.
- Observe their staff.
- Check cleanliness.
Summarise after the visit:
Find out typical pricing of rooms in the identified area.
Make a list of furniture required in the room/apartment.
Step 4: Calculate the capital expense required to set up a Service Apartment
- Deposit required
- Estimate cost required to furnish.
- Working capital etc…
Assuming you are taking a 3 BHK estimate furnishing cost for room, kitchen & living area check online its easy now.
Step 5: Visit all the potential corporate in the identified area
Google companies/corporate in identified area, make a list.
Alternately drive down in that area and make a list.
Plan a cold call visit to meet Admin & HR:
Just knock at the door and visit.
Find out customer expectation (roughly business volume, pricing they expect, type of furnishing and services they expect).
Step 6: Plan for Manpower
Identify manpower:
You will need minimum one cook & a helper to start with if you are taking a 3 BHK.
Step 7: Fix your room pricing
Based on the competition survey done. You can refer the blog on Fixing price of your serviced apartment room made simple.
Do your room pricing.
Step 8: Identify, finalise the property & sign rental agreement
Identify a property: Check out for the following.
Preferably all rooms must have attached toilet else it will become difficult to sell that room.
Start with small inventory say a 3 BHK to kick start but plan to add more in the same block preferably the same building.
Do not get into providing a conference room or a gym; don’t add cost; focus on rooms, food, services.
If you are trying to take in an apartment complex, ensure there is no objection from association.
Find a date for Mahurat
My Conclusion:
First train your mind that you are plunging into this business with full determination and for 6 months you will not look for any returns. Share any point that you feel I have missed out?
89 Comments
Very nice article Mr Ajay. Anybody who wanted to start a service Apt. Can be benefited out of this. I am sure people especially the beginners may have more queries and would love to hear more about the margin part etc. Keep writing.
Thanks Mr Kurup
Soon we would be launching more blogs related to our Hospitality industry that would help new serviced apartment startups.
Very nice blog. Mention the homely feelings in a serviced apartment compared to a hotel.
Thank you
Nice Article Ajay. Good insight indeed.
Thankyou
Making a career shift into a completely unknown area of industry requires courage and self belief. It’s obvious that your determination was key in turning your enterprise into such a success.
Congratulations Rita.
Thanks Srivalsan
Thanks Ms Rita Dewan. It is a detailed article and very helpful. Please keep it up. Might use the ideas after say 6-10 months.
Thankyou Sunil
A must read article for getting into service Apt hospitality business. Makes one focus on specific hospitality service and business needs avoiding non essential frills, a winning formula.
Thanks Rajesh for your encouraging words.
Quite informative article , a must read for people who want to start service appartment business, thanks Ms Rita
Thanks Mr Brahm. But then these principals can be extended to any other business
Placid expression And explicit analysis behind story telling and biz is inspiring for new comers with desire to create space in competitive world of hospitality.
Thanks
Nicely put across. It’s a complete guide for an entrepreneur
I truly wish some of the aspiring entrepreneurs of Hospitality industry can use my experience and find it easy to set up their very first ” Serviced Apartment”.
Thanks Mr.Bhat.
Very fine write up. It’s just like a “Made Easy”, we referred to during our Student days. Stay blessed, Rita.
Thanks Sharmaji
Nice article
Quite motivating
Thanks Mr Borah
Thanks for sharing your insights. The points are very useful and informative.
Thanks Pulkit
Very nice and detailed blog, I wish Madam can add few words on the maintenance activity required ex. identifying a laundry service, water tanker service and on the power backup.
surely will consider more posts in future
She is honest in the article, and gives all do’s and don’ts for hospitality bussiness newbies.
Thanks Dipika you can Trust TrustedStay 🙂
Good insight to first time entrepreneur’s venturing into the service apartment business. The message elicits to do your homework well, which would translate to build a successful enterprise. The blog shares the practical approach which will help the industry.
Best Wishes Rita.
Thank you Mr Vincent
For a beginner with a clear mindset can take this article as guidebook in which all the basic points are touched and explained
As per my experience goes most of the hospitality chain after opening face few major issues which is operation related as client coordination , sending confirmation on time and billing anything related to this will help beginner’s I hope …much appreciate for this article..
Thanks Abhishek for your inputs. We have lined up 35 more posts and soon you will see your requirements would be met 🙂
Very informative article Rita. Admire your tenacity and ability to do due diligence..
All the best..
Thanks Sandhya. wanted to share my true experience with others who may want to enter this line.
Rita has truly been dedicated to her job in running an excellent service apartment at koramangala…. people have always given her good reviews for their stay because of the personal touch she gives to her travellers! It’s only a matter of time when you would be up and about running the same with even more vigour &passuon post the lock down situation ! All the best rita in whatever you do !
Thats very encouraging Puneet. Thanks for your moral support and appreciation.Running Serviced Apartments has truly been my passion now for more than 15 years.Now wanted to let my experience guide others wanting to start a Guest House or Serviced Apartment.
Good one Rita. Simple and clear article. All the best.
Great to know that Lakshmi. My intent is to reach people wanting to get into setting up Serviced Apartment or Furnished Accommodation, for them to be able to understand it in simple terms.
Sharing your way to success and your candid experiences is selfless Rita. On a worldview, though this does a lot to improving the industry, but sharing the “savoir faire” on a forum doesn’t come easy to lesser mortals, Appreciate your generosity.
Hospitality industry is all about caring. I felt sharing my experience of setting up my business should make it a bit easier for others wanting to take a plunge in this industry. Thanks for your kind words Mr.Krishnan.
Very frank honest and informative update for those who are looking for venturing out in this profession.
That exactly is the idea behind this article Mr.Sandhu. We will be coming out with more such blogs on insight of setting up and running Guest Houses and Furnished accommodations for short and long term stay. Thanks.
Very clearly put all the steps followed that one can follow before venturing into this business. Appreciate your openness in sharing thread bear detailing. Very helpful in understanding.
Had the privilege of using your service apartment during my last visit to Bangalore with my wife. It was a delightful experience with comfortable stay, homely cooked meals and courteous staff.
Thanks Mr.Sharma. Its pleasure to hear back feedback from our customers.Actually Serviced Apartment’s main USP is homely food and comfort of “Home away from Home”. We are writing a series of blogs on various aspects of Setting up and Managing Serviced Apartments to make sure story of our journey makes it easier for others planning on their journey in this industry.
Step by step clear guide guide for a beginner very useful information made simple.
Thanks Seema. wanted to give a simple and step by step account of how I started my first serviced apartment for others to benefit from.
The article is honestly addressing to the.
Things to be kept in mind and applied while setting up the business of service apartment
The intensive experience of running a business for 17 years can be seen in the elaborative coverage of essential topics, good job Reeta. Keep it up!
Yes Mrs. Jyotsana, its been 17 years I have been in this industry. wanted to share my experiences to let people interested in venturing in this business of running Guest Houses know the smallest details and make it easier for them. It makes me Nostalgic 🙂
What I liked was a simple, no nonsense, no frills, matter of fact and honest open cards on the table approach. Well written and shared experiences. Of course what was not written was the struggle and how you faced your disappointments or challenges. But I am sure we will get to read about it in your future blogs My best wishes for all your success and never give up.
Thank you Mr.Dhuru for your best wishes.Yes it was challenging to venture into this new concept way back in 2003.Looking back, I realised I was looking for some simple guide for me to fast forward my task…hence decided to pen it down in series of Blogs covering various aspects of setting up and managing Serviced Apartments and Furnished Accommodations. Please do read our other blogs on how to get and retain manpower for running this business as well as on pricing and marketing techniques we used to grow the business.
Very well conceived and informative article for the new comers in the business.
Thanks Rakesh.Will be good if others can benefit from my experience.
Very informative article. 17 years of experience has given you wealth of knowledge.
Thanks Bindu. Hope my experience helps others looking for info on starting a new venture.
Very well researched article from an experienced expert! 🙂
Thanks Divyesh. Research is my own personal journey…first hand report:-)
Very nicely penned down guide for the budding entrepreneurs, I am sure they will surely benefit from this writeup, Rita!!
Alka, Please do read next blogs in our series…will give a better grip to entrepreneurs planning entry in the hospitality industry, mainly Serviced Apartments or Guest Houses. Thanks .
Hi Rita Dear,
You have written such a nice piece! Very informative and helpful. You have written so well that I think even those who are not looking to start a business will be interested in doing so after reading your article.
You are a self made lady and may god bless you always ❤️
Thank you Kusum Ji.Hope your wishes come true for people looking forward to get going in this business of Guest houses and furnished accommodation and my experience helps.
It’s a very beautiful way to explain the process of service appartment projects and really appreciated.
Thanks Vivek. One generally feels like hiding our trade secrets…I think sharing is caring. Caring is the USP of our trade hence this article.
Very nice and clear step by step approach. Hats off to your effort and determination. All the best Rita!
Garima,when I started 17 years back…I faced challenges in getting guidance on starting this business of Serviced Apartments ,hence the idea to put my knowledge and experience to use for others as well.Please do read our upcoming blogs on various other aspects of this industry as well.Thanks
Really interesting and helpful insights! Looking forward to reading more posts from you!
We are coming up with a series of 35 blogs on most aspects of how to set up, manage and run Guest houses and furnished accommodations. Also on how to do pricing and marketing to make business successful. Please do read those blogs as well Lavanya.
Wonderful…. excellent information shared by you Rita to energize people to generate their own business for hospitality in the industry being established service apartment……..good wishes to you Rita for sharing such good ideas to protect into this modern century where homes n hotels are expensive n service appartment are comfortable.
Rita, You have tried to cover every aspect one needs to know regarding service apartments. My friends have stayed in your service apartments and I have seen the service provided to them during my visit. I must say you walk the talk. Well written blog.
Thanks Neelam. Good to know that your friends shared their first hand experience of their stay at our property. Please do read our upcoming blogs on how to Hire and Retain staff for Serviced Apartment business to make sure we win loyalty of our customers, like your friends:-)
A step by step methodical approach for the work what you do best … I have always admired your logical approach to every work you do … as if you have written a programme about it in your brain … a very well drafted guide for the business … .
Thanks Soumi.
This is an excellent ready reckoner for starting a service apartment venture. It is clear, practical & laid down systematically. This will help many budding entrepreneurs.
Thanks Kalpana. Glad to know my objective is evident to the reader.Please do read our upcoming blogs on “How to Price a room”,” How to calculate Breakeven cost” and many more relevant topics for the hospitality industry.
As always, so helpful, such useful information, and a pioneer in leading to serve the needs of the community. Thank you!
Thanks Anitha.
Experience speaks for itself ! Indepth details shared for a novice to venture into the service apartments business
It will be pleasure to see some aspirants gaining from my blog. Thanks Mona.
A very detailed n precise writeup that too based on first hand experience of 17 years… wow!!!
Thanks Kaveri.
This was indeed very helpful. So many specific details. Thanks!!
Thanks Nisha
Dear Rita,
This is one of the most informative artical on the subject. It certainly will help people who wish to get into service apartment business….. It is a kick start…
Thanks for sharing your thought process and quick check list.
Prashant.
Thankyou Prashant
Dear Rita,
It is a brilliant business write-up written from the heart. It reflects your passion and desire to share the lessons learnt in your journey. Having witnessed your early struggles closely, I am really happy that you and Ajay reached so far. More strength to you
Perhaps in your next blog you can talk about the collaborative nature of the Service Apartments business and how you worked with your competition.
Thanks Baul for your encouraging words
Served on a plate!
It is really a nice andd useful piece of info. I am glad that you simply shared this
uszeful information with us. Pleaee stay us informed like this.
Thank you forr sharing.
This article is a goldmine for anyone considering starting a service apartment business! The step-by-step breakdown not only demystifies the process but also highlights critical considerations, like market research and legal requirements, which are often overlooked by new entrepreneurs. I’m curious about the challenges one might face in this business, especially in competitive markets. Could you possibly share more insights on overcoming initial hurdles and establishing a solid customer base? Thanks for such an informative and practical guide!
Thanks do read all other blogs