Do you want to avoid the regret of having missed out on certain key expenses before starting a serviced apartment business?
My Pain…
Have I considered all the expenses that could occur while running a serviced apartment?
My experience…
No matter what brainstorming you do, you will surely stumble across certain things that you had missed out in your initial stage calculations. I have tried to jot down all possible expenses that would help you determine the breakeven cost and hence the right room rate of a service apartment
- Rent- Monthly cost of Flats/House
- Manpower Salary-
- Cook
- Housekeeping :
- Security :
- Maali :
- Utility-
- Electricity
- Internet
- Telephone
- Cable TV
- Gas
- Garbage Collection
- Mineral water
- Miscellaneous
- Books & Periodicals : News paper, Magazines
- Postage:
- Print & Stationary:
- Staff welfare:
- Conveyance:
- Repair& Maintenance/AMC:
- Water Tanker:
- Diesel for generator:
- Staff Food Expense:
- Donation:
- Pest Control:
- Laundry:
- Housekeeping stuff: Phenyl, Odonil, Vim, Harpic, Surf, Scotch bright, Broom, Mop, Room refreshner, Mosquito repellent, Paper Napkins, Paper rolls, Dusters & Toilet Brush
- Replacement : Towels (amortise over a period of every 6 months), Bed linen & Pillow covers ( amortise over a period of 1 year) whitewash ( amortise over 2 years) Curtains (amortise over a period of 3 years)
- Statutory cost: Auditor fee & Accounting charges
- Marketing Cost:
- Marketing executive ( sal, travel, Telephone)
- Advertisement expenses ( Social media, Google)
My Conclusion…
Not only should the owner be hands-on and up to date on this calculation but also his Manager/Supervisor should know these costs so that they can take decision independently. To get the exhaustive Break even costing excel sheet put your request in the comment box below.
8 Comments
Dear Madam,
It’s very interesting to note that serviced apartments are better than some of the major hotels, would you be kind enough to send me how the breakdown of operating costs and also when the break even happens.
Regards,
Anil Abraham Cherian
Sure connect me on our call center no 89510 89510
Hi,
Greetings and thanks for this useful information.
I would like to get an exhaustive Break even costing excel sheet.
I am getting into the business of serviced apartment.
This will be helpful for me.
Sure
Can you breifly send your intro, i have already sent a mail to your mail id
which city are you from?
what are your plans?
which city are you planning in?
What is your contact no?
And then we can take it forward and share all neccessary details
Regards
Looks interesting can you please share the excel sheet to calculate breakeven cost of a serviced apartment having 20 rooms in Bangalore
Thanks please check your mail
regards
Great resource for understanding how to calculate break-even costs for serviced apartments! The step-by-step approach makes it easy to grasp, and the practical examples are incredibly helpful. Knowing these figures is essential for anyone managing a property to ensure financial sustainability. Thanks for sharing such valuable insights—this will aid many property owners and investors.
Thanks Namit, Do read the remain 30 blogs and let us have your feedback. regards