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

1. Rent- Monthly cost of Flats/House
2. Manpower Salary-
   1. Cook
   2. Housekeeping :
   3. Security :
   4. Maali :
3. Utility-
   1. Electricity
   2. Internet
   3. Telephone
   4. Cable TV
   5. Gas
   6. Garbage Collection
   7. Mineral water
4. Miscellaneous
   1. Books & Periodicals : News paper, Magazines
   2. Postage:
   3. Print & Stationary:
   4. Staff welfare:
   5. Conveyance:
   6. Repair& Maintenance/AMC:
   7. Water Tanker:
   8. Diesel for generator:
   9. Staff Food Expense:
   10. Donation:
   11. Pest Control:
   12. Laundry:
   13. Housekeeping stuff: Phenyl, Odonil, Vim, Harpic, Surf, Scotch bright, Broom, Mop, Room refreshner, Mosquito repellent, Paper Napkins, Paper rolls, Dusters & Toilet Brush
   14. 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)
5. Statutory cost: Auditor fee & Accounting charges
6. Marketing Cost:
   1. Marketing executive ( sal, travel, Telephone)
   2. 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.