This time, I share the top five business expenses of running a multilet commercial flexspace portfolio, incurred by our business over the past financial year. I’ll provide you with a detailed breakdown of costs, including energy, staffing, interest payments, maintenance, and cleaning.
Through a comparison with the previous year, I highlight the significant increases in energy costs due to price increases and also touch on strategies for managing costs, projections for the upcoming year, and the impact of various factors on the business’s financial performance.
KEY TAKEAWAYS
The top five expenses for the business were energy, staffing, interest payments, maintenance, and cleaning.
Energy costs saw a significant increase from the previous year, with wood pellets and electric expenses notably higher.
Staffing costs remained relatively stable, while interest payments saw a substantial increase.
Maintenance costs included both regular maintenance and improvements to the properties.
Cleaning expenses are surprisingly high, with additional costs for waste management.
BEST MOMENTS
“Energy didn’t used to be our most expensive part of our business, but it is now and has been last year.”
“I can’t believe how much money we spend on cleaning.”
“Our turnover is increasing. It’s not quite where we’ve projected, but hopefully we’re going to get somewhere near that.”
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