You don’t need to be a financial whizz to run a successful holiday rental business.
But you can’t bury your head in the sand when it comes to important business data.
As a business owner you need to know: your monthly and annual income, your monthly and annual expenses. And your changeover costs. In other words:
EXACTLY how much is it costing you, each time a new set of guests arrive at your holiday rental?
It’s amazing how many holiday home owners book the cleaners and organise the welcome hamper but don’t specifically know what it’s costing them per changeover.
If that’s you, you’re not alone. But it’s a figure that moving forward, you need to log, analyse and monitor.
Why is it important to know the changeover cost?
It relates directly to each booking. Once you know how much a single changeover is costing you, you can factor this cost directly into the rental prices you charge. You’re in this business to make money. If your changeover is costing you £100 and you’re only charging £200 a week, then something is clearly wrong. As this is without even considering marketing costs, heating and lighting costs, your time, etc etc.
What to include in a changeover cost?
– welcome hamper goodies (teabags, jam, wine, cakes, milk etc)
– welcome hamper sundries (handwritten card, postcard, stamp, flowers)
– guest toiletries
– linen costs (both washing and ironing)
– cleaning charge
– housekeeping charge
– re-stock of supplies (toilet rolls, kitchen rolls, bin liners, light bulbs)
Do not cut corners. All these items in a changeover cost are guest -focussed, things your guests will directly notice and benefit from. Cutting corners when it comes to changeovers can directly impact of your guest’s enjoyment of their holiday with you. Of course shop around and look for the cheapest supplier, but only as long as the quality isn’t compromised.
So if I asked you now “How much does each changeover cost you?”. Would you be able to give an immediate, definitive answer? Perhaps not but you will be able to do so next time I ask!