holidayhomeinformation.co.uk

string(20) "what-you-should-know" string(24) "management-and-marketing" string(45) "the-costs-of-managing-and-cleaning-a-property"

The costs of managing and cleaning a property

Andrew Wilson, Holiday Home Management Ltd, October 2007

If you are renting out a property to guests there are many things to think about, one major consideration being the cost of maintaining your property and cleaning it for each booking.

Obviously you need to look at the costs of hiring a local cleaner or a property management company but on top of this you should also consider the costs of linen/towels etc and - since like any property, things may go wrong! - you need to consider charges you will incur for the maintenance of your property.

Some guideline costs (exclusive of VAT)

There are a number of costs involved in the ongoing maintenance and running of a holiday home, namely:

• Any annual keyholding fee charged by a property management company
• Call out charges for any issues, such as problems with boilers etc
• Charges for liaison with delivery men
• The cost of changeovers eg buying and cleaning linen, and cleaning of your property
• Sundry maintenance charges

If you use a local property maintenance company they are likely to charge you about £200 to cover their costs of holding your keys securely.  They will also look to charge for any call outs to your property, or for arranging access to your property for deliveries/tradesmen etc.

The cost of a changeover will vary according to the size of your property.  Below are some indicative costs if you use a local property management firm.  They will have a contract with a supplier of linen and charge on a per booking basis, which will avoid you having to invest a significant amount in linen, towels, tea towels etc.

2 bedroom apartment (assumed to have 1 king bed & 2 singles, 2 bathrooms, a balcony, a lounge, and a kitchen/diner)

Linen costs                               ₤18-£20

Cleaning Cost                           ₤45-£55

Total                                       ₤63-£75                                  

3 bedroom apartment (assumed to have 1 king bed & 4 singles, 2 bathrooms, 1 or 2 balconies, a separate lounge and dining room, plus a kitchen)

Linen costs                              ₤25-£35

Cleaning Cost                           ₤50-£60

Total                                       ₤75-£95          

4 bedroom house (assumed to have 1 king bed, I double bed & 4 singles, 2 bathrooms, 1 or 2 balconies, a separate lounge and dining room, plus a kitchen)

Linen costs                               ₤35-£40

Cleaning Cost                           ₤55-£65

Total                                       ₤90-£105        

If you also wish to provide an arrival pack for your guests this is likely to cost between an additional £5 and £10 per booking.

There are some further ongoing costs that you should also bear in mind, namely the annual Landlord's gas safety certificate (about £80), any annual policy to cover your boiler and heating system, and a budget for a yearly spring clean and painting touch up.

--------------

Holiday Home Management Limited (http://www.holidayhomemanagement.co.uk/) are one of the South West's leading property management companies, representing a large portfolio of properties across Devon and Cornwall.