{"product_id":"serviced-apartments-startup-costs","title":"Serviced Apartments Startup Costs: Plan For $177M+ To Open","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003cp\u003eYou’re funding real apartments before demand is proven, so the startup budget must cover more than furniture This first operating year model uses \u003cstrong\u003e40 units\u003c\/strong\u003e, \u003cstrong\u003e$1475M in CAPEX\u003c\/strong\u003e, and a \u003cstrong\u003e$290k cash low point in Month 7\u003c\/strong\u003e, putting the modeled funding need near \u003cstrong\u003e$177M before lease deposits, debt service, and owner draws\u003c\/strong\u003e\u003c\/p\u003e\n\n\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eEstimate Startup Costs with Calculator\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-capex-calculator\" aria-label=\"Serviced Apartments Startup CAPEX Calculator\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Startup CAPEX calculator.xlsx\" data-source-site-name=\"Financial Models Lab\" data-source-site-url=\"https:\/\/financialmodelslab.com\" data-source-page-title=\"Serviced Apartments Startup CAPEX Calculator\" data-note-title=\"CAPEX only\" data-note-text=\"Excludes rent deposits, payroll runway, debt service, working capital, inventory, marketing, licensing, insurance premiums, and other operating costs. This calculator covers asset-based launch spending only.\"\u003e\u003cdiv class=\"fml-capex-card\"\u003e\n\u003cheader class=\"fml-capex-header\"\u003e\u003cdiv class=\"fml-capex-heading\"\u003e\n\u003cp class=\"fml-capex-eyebrow\"\u003eStartup CAPEX Calculator\u003c\/p\u003e\n\u003cp class=\"fml-capex-intro\"\u003eEstimates capitalized startup assets only for a serviced apartment launch, not operating cash needs.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-scenarios\" aria-label=\"Scenario presets\"\u003e\n\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"lean\"\u003eLean\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"full\"\u003eFull\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-capex-layout\"\u003e\n\u003cform class=\"fml-capex-inputs\"\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eApartment Furniture \u0026amp; Fixtures\u003c\/span\u003e\u003csmall\u003eBeds, seating, storage, and room setup for furnished units.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"apartment_furniture_fixtures\" data-capex-kind=\"money\" data-capex-label=\"Apartment Furniture \u0026amp; Fixtures\" data-capex-note=\"Beds, seating, storage, and room setup for furnished units.\" data-lean=\"680000\" data-base=\"750000\" data-full=\"830000\" name=\"apartment_furniture_fixtures\" type=\"text\" inputmode=\"numeric\" value=\"750,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eKitchen Appliances\u003c\/span\u003e\u003csmall\u003eAppliances for in-unit kitchens and guest use areas.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"kitchen_appliances\" data-capex-kind=\"money\" data-capex-label=\"Kitchen Appliances\" data-capex-note=\"Appliances for in-unit kitchens and guest use areas.\" data-lean=\"170000\" data-base=\"200000\" data-full=\"230000\" name=\"kitchen_appliances\" type=\"text\" inputmode=\"numeric\" value=\"200,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eTechnology Systems\u003c\/span\u003e\u003csmall\u003eProperty tech, booking tools, and guest-facing systems.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"technology_systems\" data-capex-kind=\"money\" data-capex-label=\"Technology Systems\" data-capex-note=\"Property tech, booking tools, and guest-facing systems.\" data-lean=\"125000\" data-base=\"150000\" data-full=\"180000\" name=\"technology_systems\" type=\"text\" inputmode=\"numeric\" value=\"150,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eInitial Linen \u0026amp; Towels\u003c\/span\u003e\u003csmall\u003eOpening stock of linens, towels, and room soft goods.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"initial_linens_towels\" data-capex-kind=\"money\" data-capex-label=\"Initial Linen \u0026amp; Towels\" data-capex-note=\"Opening stock of linens, towels, and room soft goods.\" data-lean=\"40000\" data-base=\"50000\" data-full=\"65000\" name=\"initial_linens_towels\" type=\"text\" inputmode=\"numeric\" value=\"50,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eShared Amenity Fit-out\u003c\/span\u003e\u003csmall\u003eLobby bar, spa, meeting room AV, parking system, and signage.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"shared_amenity_fitout\" data-capex-kind=\"money\" data-capex-label=\"Shared Amenity Fit-out\" data-capex-note=\"Lobby bar, spa, meeting room AV, parking system, and signage.\" data-lean=\"260000\" data-base=\"325000\" data-full=\"380000\" name=\"shared_amenity_fitout\" type=\"text\" inputmode=\"numeric\" value=\"325,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eContingency Reserve\u003c\/span\u003e\u003csmall\u003eCovers overruns on launch assets and fit-out work.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-percent\"\u003e\n\u003cinput data-capex-field=\"contingency\" data-capex-kind=\"percent\" name=\"contingency\" type=\"range\" min=\"0\" max=\"20\" step=\"1\" data-lean=\"5\" data-base=\"10\" data-full=\"15\" value=\"10\"\u003e\u003coutput data-capex-output=\"contingencyValue\"\u003e10%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/form\u003e\n\u003caside class=\"fml-capex-results\" aria-live=\"polite\"\u003e\u003cspan class=\"fml-capex-tag\"\u003eCAPEX output\u003c\/span\u003e\u003cdiv class=\"fml-capex-total\"\u003e\n\u003cspan\u003eTotal startup CAPEX\u003c\/span\u003e\u003cstrong data-capex-output=\"totalCapex\"\u003e$1,622,500\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdl class=\"fml-capex-result-list\"\u003e\n\u003cdiv\u003e\n\u003cdt\u003eSubtotal before contingency\u003c\/dt\u003e\n\u003cdd data-capex-output=\"subtotal\"\u003e$1,475,000\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eContingency amount\u003c\/dt\u003e\n\u003cdd data-capex-output=\"contingencyAmount\"\u003e$147,500\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eLargest cost driver\u003c\/dt\u003e\n\u003cdd data-capex-output=\"largestDriver\"\u003eApartment Furniture \u0026amp; Fixtures\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003c\/dl\u003e\n\u003cdiv class=\"fml-capex-chart\" aria-label=\"CAPEX cost category breakdown\"\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eFurniture\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"apartment_furniture_fixtures\" style=\"--fml-capex-share: 51%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"apartment_furniture_fixtures\"\u003e51%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eKitchen\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"kitchen_appliances\" style=\"--fml-capex-share: 14%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"kitchen_appliances\"\u003e14%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eTech\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"technology_systems\" style=\"--fml-capex-share: 10%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"technology_systems\"\u003e10%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eLinens\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"initial_linens_towels\" style=\"--fml-capex-share: 3%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"initial_linens_towels\"\u003e3%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eAmenity Fit-out\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"shared_amenity_fitout\" style=\"--fml-capex-share: 22%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"shared_amenity_fitout\"\u003e22%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-capex-export\" type=\"button\" data-capex-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/aside\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-note\"\u003e\n\u003cspan class=\"fml-capex-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003eCAPEX only\u003c\/strong\u003e Excludes rent deposits, payroll runway, debt service, working capital, inventory, marketing, licensing, insurance premiums, and other operating costs. This calculator covers asset-based launch spending only.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003cdiv class=\"container_new_design_blog\"\u003e\n\n\u003cdiv class=\"text-section_blog text-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"line_top_blog\"\u003e\u003cbr\u003e\u003c\/div\u003e\n\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eIs the CAPEX tab complete?\u003c\/span\u003e\u003c\/h3\u003e\n\n\u003cp\u003eThe \u003cstrong\u003eCAPEX\u003c\/strong\u003e tab in the \u003ca href=\"\/products\/serviced-apartments-financial-model\"\u003eServiced Apartments Financial Model Template\u003c\/a\u003e shows startup assets, Month 1 lease timing, and the Month 7 \u003cstrong\u003e$290k\u003c\/strong\u003e working-capital low. Check depreciation or amortization, then open the model and adjust the assumptions.\u003c\/p\u003e\n\n\u003ch4\u003eKey screenshot highlights\u003c\/h4\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e$1.475M startup assets\u003c\/li\u003e\n\u003cli\u003eMonth 1 lease timing\u003c\/li\u003e\n\u003cli\u003eMonth 7 $290k low\u003c\/li\u003e\n\u003cli\u003eDepreciation\/amortization treatment\u003c\/li\u003e\n\u003cli\u003e40 units, 55% occupancy\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003cdiv class=\"image-section_blog image-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"preview-card\" data-preview-src=\"\/cdn\/shop\/files\/serviced-apartments-financial-model-capex-financialmodelslab_f70e3919-f385-41ed-9df4-3797fb5f49e6.webp\"\u003e\n\u003cimg class=\"preview-img\" width=\"100%\" height=\"auto\" src=\"\/cdn\/shop\/files\/serviced-apartments-financial-model-capex-financialmodelslab_f70e3919-f385-41ed-9df4-3797fb5f49e6.webp?width=500\" alt=\"Serviced Apartments Financial Model capex inputs tab detailing capital expenditure items and timelines, letting users customize purchase, renovation, and long‑life asset assumptions for funding and scenario-ready planning.\"\u003e\n\u003cdiv class=\"preview-overlay\"\u003e\n\u003cbutton class=\"preview-btn\" type=\"button\" style=\"align-items: center; vertical-align: middle; display: inline-flex; justify-content: center; gap: 6px; line-height: 1;\"\u003e\nPREVIEW \u003csvg fill=\"#fff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\" role=\"presentation\" viewbox=\"0 0 448 512\" width=\"14\"\u003e\u003cpath d=\"M416 176V86.63L246.6 256L416 425.4V336c0-8.844 7.156-16 16-16s16 7.156 16 16v128c0 8.844-7.156 16-16 16h-128c-8.844 0-16-7.156-16-16s7.156-16 16-16h89.38L224 278.6L54.63 448H144C152.8 448 160 455.2 160 464S152.8 480 144 480h-128C7.156 480 0 472.8 0 464v-128C0 327.2 7.156 320 16 320S32 327.2 32 336v89.38L201.4 256L32 86.63V176C32 184.8 24.84 192 16 192S0 184.8 0 176v-128C0 39.16 7.156 32 16 32h128C152.8 32 160 39.16 160 48S152.8 64 144 64H54.63L224 233.4L393.4 64H304C295.2 64 288 56.84 288 48S295.2 32 304 32h128C440.8 32 448 39.16 448 48v128C448 184.8 440.8 192 432 192S416 184.8 416 176z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n\u003c\/button\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow to fund a serviced apartments business?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003e\u003cstrong\u003eServiced Apartments\u003c\/strong\u003e needs funding that covers lease commitments, staged CAPEX, payroll ramp, and the cash trough, not just the Month 1 break-even line. Here’s the quick math: \u003cstrong\u003e$1,475M CAPEX\u003c\/strong\u003e runs from Month 1 through Month 9, cash bottoms at \u003cstrong\u003e$290k in Month 7\u003c\/strong\u003e, and the model still shows only \u003cstrong\u003e$408k\u003c\/strong\u003e Year 1 EBITDA. So the mix should include founder equity, investor equity, equipment financing, landlord concessions, a working capital line, and a staged unit rollout tied to occupancy ramp and ADRs of \u003cstrong\u003e$150\/$200\/$280\/$450\u003c\/strong\u003e midweek and \u003cstrong\u003e$180\/$250\/$350\/$550\u003c\/strong\u003e on weekends.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhat to fund\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCover lease deposits and setup costs.\u003c\/li\u003e\n\u003cli\u003eStage \u003cstrong\u003eCAPEX\u003c\/strong\u003e from Month 1 to 9.\u003c\/li\u003e\n\u003cli\u003eFund payroll before occupancy builds.\u003c\/li\u003e\n\u003cli\u003eKeep cash above the \u003cstrong\u003e$290k\u003c\/strong\u003e low point.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFunding risk signals\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e27-month\u003c\/strong\u003e payback is slow.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e006%\u003c\/strong\u003e IRR is very weak.\u003c\/li\u003e\n\u003cli\u003eMonth 1 break-even can still hide cash gaps.\u003c\/li\u003e\n\u003cli\u003eUse staged rollout to protect liquidity.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much money do you need to start a serviced apartments business?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eYou need at least \u003cstrong\u003e$1.77M\u003c\/strong\u003e to start Serviced Apartments, not just the \u003cstrong\u003e$1.475M\u003c\/strong\u003e modeled CAPEX: \u003cstrong\u003e$1.475M + $290k\u003c\/strong\u003e Month 7 cash deficit = \u003cstrong\u003e$1.765M\u003c\/strong\u003e, before lease deposits, debt service, owner draws, and renovation contingency. Tie that funding plan to \u003ca href=\"\/blogs\/kpi-metrics\/serviced-apartments\"\u003eWhat Is The Current Occupancy Rate For Your Serviced Apartments Business?\u003c\/a\u003e because cash strain peaks after opening, when rent, staff, utilities, insurance, software, and marketing start before occupancy matures.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eStartup funding\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eModel CAPEX: \u003cstrong\u003e$1.475M\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003ePeak cash gap: \u003cstrong\u003e$290k\u003c\/strong\u003e in Month 7\u003c\/li\u003e\n\u003cli\u003ePlanning need: \u003cstrong\u003e$1.77M+\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eAdd deposits and contingency separately\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOperating load\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eOpening size: \u003cstrong\u003e40 units\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eYear 1 occupancy: \u003cstrong\u003e55%\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eMonthly fixed costs: \u003cstrong\u003e$455k\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eYear 1 payroll: \u003cstrong\u003e$578k\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat working capital do serviced apartments need before stable occupancy?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eServiced Apartments need working capital to cover cash outflows before guest payments catch up; \u003cstrong\u003eworking capital\u003c\/strong\u003e is operating cash, while \u003cstrong\u003eCAPEX\u003c\/strong\u003e pays for furniture, appliances, technology, and fit-out. For a deeper earnings view, see \u003ca href=\"\/blogs\/how-much-makes\/serviced-apartments\"\u003eHow Much Does The Owner Of Serviced Apartments Business Typically Earn?\u003c\/a\u003e. The model shows a \u003cstrong\u003e$290k\u003c\/strong\u003e minimum cash deficit in \u003cstrong\u003eMonth 7\u003c\/strong\u003e, so that is the operating cushion to keep in reserve.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCash need\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eHold \u003cstrong\u003e$290k\u003c\/strong\u003e for Month 7.\u003c\/li\u003e\n\u003cli\u003eFixed costs total \u003cstrong\u003e$455k\/month\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eYear 1 payroll is \u003cstrong\u003e$578k\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eUse cash before collections arrive.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost and ramp\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eLease runs \u003cstrong\u003e$30k\/month\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eUtilities are \u003cstrong\u003e$3k\u003c\/strong\u003e; insurance \u003cstrong\u003e$2k\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eSoftware is \u003cstrong\u003e$1k\u003c\/strong\u003e; marketing \u003cstrong\u003e$2k\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eProfessional services are \u003cstrong\u003e$15k\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eVariable costs: \u003cstrong\u003e8%\u003c\/strong\u003e commissions, \u003cstrong\u003e3%\u003c\/strong\u003e laundry, \u003cstrong\u003e15%\u003c\/strong\u003e housekeeping supplies, \u003cstrong\u003e1%\u003c\/strong\u003e guest amenities; occupancy ramps from \u003cstrong\u003e55%\u003c\/strong\u003e in Year 1 toward \u003cstrong\u003e65%\u003c\/strong\u003e in Year 2.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCalculate Fuding Needs\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-summary-static\" aria-label=\"Serviced Apartments Startup Cost Summary\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Serviced Apartments Startup Cost Summary.xlsx\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Serviced Apartments Startup Cost Summary\" data-source-url=\"\"\u003e\u003cdiv class=\"fml-summary-static-card\"\u003e\n\u003cheader class=\"fml-summary-static-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-summary-static-eyebrow\"\u003eStartup cost summary\u003c\/p\u003e\n\u003cp class=\"fml-summary-static-description\"\u003eThis table splits serviced apartment startup CAPEX from excluded working cash needs.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-actions\"\u003e\n\u003cdiv class=\"fml-summary-static-scenarios\" aria-label=\"Highlight scenario\"\u003e\n\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"low\"\u003eLow\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"high\"\u003eHigh\u003c\/button\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-summary-static-export\" type=\"button\" data-summary-export\u003eEXPORT XLSX\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003csection class=\"fml-summary-static-metrics\" aria-live=\"polite\"\u003e\u003cdiv class=\"fml-summary-static-metric is-primary\"\u003e\n\u003cspan\u003eHighlighted CAPEX\u003c\/span\u003e\u003cstrong data-summary-metric=\"capex\"\u003e$1,300,000\u003c\/strong\u003e\u003csmall data-summary-metric=\"scenario\"\u003eBase planning example\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric is-warning\"\u003e\n\u003cspan\u003eExcluded cash needs\u003c\/span\u003e\u003cstrong data-summary-metric=\"working\"\u003e$290,000\u003c\/strong\u003e\u003csmall\u003eOutside CAPEX total\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric\"\u003e\n\u003cspan\u003eFunding need\u003c\/span\u003e\u003cstrong data-summary-metric=\"funding\"\u003e$1,590,000\u003c\/strong\u003e\u003csmall\u003eCAPEX + excluded cash needs\u003c\/small\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cdiv class=\"fml-summary-static-table-wrap\"\u003e\u003ctable class=\"fml-summary-static-table\"\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth scope=\"col\"\u003eCost Category\u003c\/th\u003e\n\u003cth scope=\"col\" class=\"fml-summary-static-estimate-header\" data-summary-estimate-header\u003eBase Estimate\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eMain Cost Driver\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eCAPEX Calculator\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-summary-row data-low=\"700000\" data-base=\"750000\" data-high=\"820000\" data-capex=\"true\"\u003e\n\u003ctd\u003eApartment furniture and fixtures\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$750,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eRoom count and finish level\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"180000\" data-base=\"200000\" data-high=\"220000\" data-capex=\"true\"\u003e\n\u003ctd\u003eKitchen appliances\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$200,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eUnit count and appliance spec\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"135000\" data-base=\"150000\" data-high=\"170000\" data-capex=\"true\"\u003e\n\u003ctd\u003eTechnology systems\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$150,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eSystem scope and integration\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"100000\" data-base=\"120000\" data-high=\"140000\" data-capex=\"true\"\u003e\n\u003ctd\u003eLobby bar fit-out\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$120,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eBuild-out scope and materials\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"70000\" data-base=\"80000\" data-high=\"95000\" data-capex=\"true\"\u003e\n\u003ctd\u003eSpa and wellness equipment\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$80,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eEquipment package size\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr class=\"is-excluded\" data-summary-row data-low=\"250000\" data-base=\"290000\" data-high=\"340000\" data-capex=\"false\"\u003e\n\u003ctd\u003eWorking capital trough\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$290,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eFixed overhead and Year 1 payroll ramp\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill is-no\"\u003eNo\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cfooter class=\"fml-summary-static-note\"\u003e\u003cspan class=\"fml-summary-static-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Ranges are researched assumptions; non-CAPEX excludes working capital, deposits, and runway needs.\u003c\/p\u003e\u003c\/footer\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eServiced Apartments Core Five Startup Costs\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eProperty Access And Lease Commitment Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eMonthly burden\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eProperty access is a \u003cstrong\u003efunding need\u003c\/strong\u003e, not capital spending (CAPEX), unless improvements are capitalized. With \u003cstrong\u003e$30k\u003c\/strong\u003e rent and \u003cstrong\u003e$5k\u003c\/strong\u003e property taxes each month, fixed burn is \u003cstrong\u003e$35k\/month\u003c\/strong\u003e from Month 1, before occupancy reaches the modeled \u003cstrong\u003e55%\u003c\/strong\u003e. That means cash starts leaving before the first guest revenue lands.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eUpfront cash\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eEstimate entry cash as first month’s rent, landlord deposit, utility deposits, lease guarantees, and legal review. The deposit amount is not given, so you need a quote from the owner or broker. Include master lease terms too, because they shape default risk and the cash needed before the first guest revenue.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eContract exposure\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eLease term exposure equals \u003cstrong\u003econtract months × $35k\/month\u003c\/strong\u003e. Ask whether the units are \u003cstrong\u003eleased, owned, master-leased, or revenue-shared\u003c\/strong\u003e, because that changes who carries vacancy risk and how much cash sits at risk while the buildout and launch ramp are still below the Year 1 model.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eKey asks\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eBefore underwriting, confirm the \u003cstrong\u003elease start date\u003c\/strong\u003e, \u003cstrong\u003edeposit schedule\u003c\/strong\u003e, and any \u003cstrong\u003eoccupancy pass-throughs\u003c\/strong\u003e. Fixed property costs begin before the asset is full, so the model needs the rent burden, any known deposit requirement, lease term exposure, and total cash needed before first guest revenue.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eFurniture, Appliances, Housewares, And Linens Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eUnit Package\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe biggest startup bill is the guest-ready unit package: \u003cstrong\u003e$750k\u003c\/strong\u003e for apartment furniture and fixtures, \u003cstrong\u003e$200k\u003c\/strong\u003e for kitchen appliances, \u003cstrong\u003e$50k\u003c\/strong\u003e for linens and towels, plus in-unit tech from the \u003cstrong\u003e$150k\u003c\/strong\u003e technology budget. For \u003cstrong\u003e40\u003c\/strong\u003e opening units, those named lines total about \u003cstrong\u003e$1.15M\u003c\/strong\u003e, or \u003cstrong\u003e$28.8k\u003c\/strong\u003e per unit before shared amenity fit-outs.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eWhat It Covers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eEstimate this by unit count times package cost, then verify quotes by layout. Use separate counts for \u003cstrong\u003e15 studios\u003c\/strong\u003e, \u003cstrong\u003e15 one-bed units\u003c\/strong\u003e, \u003cstrong\u003e8 two-bed units\u003c\/strong\u003e, and \u003cstrong\u003e2 penthouses\u003c\/strong\u003e, because bigger units need more beds, seating, and linen stock. One clean rule: buy enough for day one plus spares for turns.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBeds, mattresses, sofas\u003c\/li\u003e\n\u003cli\u003eCookware, plates, small appliances\u003c\/li\u003e\n\u003cli\u003eTVs, routers, backup linens\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eBuy It Smart\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eStandardize the core pieces, then spend more on the \u003cstrong\u003e2 penthouses\u003c\/strong\u003e and other larger units. Use durable, contract-grade items where housekeeping turns and guest damage are common. The fast save is fewer styles and fewer spares; the common mistake is buying show pieces that fail after the first replacement cycle.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eKeep one core SKU per room type\u003c\/li\u003e\n\u003cli\u003eReserve upgrades for larger units\u003c\/li\u003e\n\u003cli\u003eHold extra towels and sheets\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eWatch the Rebuy\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eDurability is a cash issue, not a style choice. Housekeeping turns, guest damage, and replacement cycles keep draining cash after launch, so budget for replacements, not just the opening order. If linen or furniture quality slips, service problems show up first in the busiest units, then in the whole building.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eReadiness, Safety, Connectivity, And Access Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eLaunch cash\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eGuest-ready readiness\u003c\/strong\u003e is a one-time launch budget, not a monthly operating cost. The core shared spend is \u003cstrong\u003e$150k\u003c\/strong\u003e for technology systems, \u003cstrong\u003e$25k\u003c\/strong\u003e for building signage, and \u003cstrong\u003e$40k\u003c\/strong\u003e for parking system installation, or \u003cstrong\u003e$215k\u003c\/strong\u003e total before unit touch-ups, inspections, and access work. That cash lands before first guest revenue, while recurring base costs still run in the background.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eUnit readiness\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eUnit-by-unit readiness\u003c\/strong\u003e covers smart access where allowed, locks, routers, Wi-Fi setup, security gear, safety devices, minor repairs, paint touch-ups, key control, and inspections. If you spread the \u003cstrong\u003e$150k\u003c\/strong\u003e technology budget across \u003cstrong\u003e40 units\u003c\/strong\u003e, that is \u003cstrong\u003e$3,750 per unit\u003c\/strong\u003e; signage is \u003cstrong\u003e$625\u003c\/strong\u003e per unit and parking install is \u003cstrong\u003e$1,000\u003c\/strong\u003e per unit. Shared systems need separate bids from unit work.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eCost control\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eKeep cost down by standardizing hardware, buying one access stack, and ordering finishes in one batch. The big trap is spending on locks or signage before lease terms, city rules, and owner approval are clear. A clean budget splits approved unit work from shared systems and keeps recurring costs visible: \u003cstrong\u003e$3k\u003c\/strong\u003e monthly utilities, \u003cstrong\u003e$1k\u003c\/strong\u003e security, and \u003cstrong\u003e$50k\u003c\/strong\u003e annual maintenance technician pay.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eApproval risk\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eApprovals change the scope\u003c\/strong\u003e. City rules, lease terms, and building owner approval can limit signage, locks, and security changes, so quote both the allowed version and the preferred version. For planning, the recurring base is about \u003cstrong\u003e$8.2k per month\u003c\/strong\u003e before other labor or repairs: \u003cstrong\u003e$3k\u003c\/strong\u003e utilities, \u003cstrong\u003e$1k\u003c\/strong\u003e security, and roughly \u003cstrong\u003e$4.2k\u003c\/strong\u003e for the annual maintenance technician.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eSoftware, Booking, And Payment Infrastructure Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eLaunch setup\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eBudget \u003cstrong\u003e$150k\u003c\/strong\u003e in technology systems CAPEX across launch for the booking website, property management system, channel manager, payment setup, guest messaging, pricing tools, accounting tools, access integrations, and reporting dashboards. Keep this separate from monthly fees so the launch budget stays clean. The spend lands before first guest revenue, so it belongs in startup cash, not operating burn.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eMonthly burn\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eRun software licensing at \u003cstrong\u003e$1k\/month\u003c\/strong\u003e from Month 1 and add \u003cstrong\u003e$15k\/month\u003c\/strong\u003e for accounting, legal, and advisory support. That gives you a steady systems cost before occupancy ramps. One line: if the stack is live, the bill starts even when rooms sit empty.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$1k\u003c\/strong\u003e software license\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$15k\u003c\/strong\u003e pro services\u003c\/li\u003e\n\u003cli\u003eStarts in Month 1\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eChannel fees\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eModel booking channel commissions at \u003cstrong\u003e8%\u003c\/strong\u003e of revenue in Year 1, declining to \u003cstrong\u003e7%\u003c\/strong\u003e by Year 5. Treat this as a revenue share, not software spend, so it does not hide inside tech costs. Fixed software sits on one side; variable channel fees sit on the other.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eRequired links\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour core integrations are the booking website, property management system, channel manager, payment rails, guest messaging, pricing engine, accounting tools, access control, and reporting dashboards. Tie them together before launch, or you create manual work at check-in, billing, and reconciliation. If one link fails, service slows and cash collection does too.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBooking website and direct booking flow\u003c\/li\u003e\n\u003cli\u003ePayment setup and reconciliation\u003c\/li\u003e\n\u003cli\u003eAccess control and reporting dashboards\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eInsurance, Licensing, Housekeeping, And Launch Service Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eCompliance Costs\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eOpening costs here are mostly compliance and service-readiness, not just paperwork. Budget \u003cstrong\u003e$2k\/month\u003c\/strong\u003e for insurance and \u003cstrong\u003e$2k\/month\u003c\/strong\u003e for base marketing, then cover permits, local short-term rental rules, business licensing, sales and occupancy tax setup, and a lease compliance review before the first guest arrives.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eHousekeeping Build\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eHousekeeping is a real operating build, not a minor supply line. Use \u003cstrong\u003e15%\u003c\/strong\u003e of Year 1 revenue for housekeeping supplies, \u003cstrong\u003e1%\u003c\/strong\u003e for guest amenities, and \u003cstrong\u003e3%\u003c\/strong\u003e for laundry services. Year 1 housekeeping payroll is \u003cstrong\u003e$1.105M\u003c\/strong\u003e: \u003cstrong\u003e$55k\u003c\/strong\u003e for the head housekeeper plus \u003cstrong\u003e30\u003c\/strong\u003e staff at \u003cstrong\u003e$35k\u003c\/strong\u003e each.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eLaunch Readiness\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eLaunch spend also needs clean handoffs. That means cleaning supplies, a laundry process, staff onboarding, opening marketing, and guest service scripts. Keep the first months funded with \u003cstrong\u003e$2k\/month\u003c\/strong\u003e insurance and \u003cstrong\u003e$2k\/month\u003c\/strong\u003e base marketing so guest issues and service training do not hit cash flow.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eLocal Rules\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eWhat this estimate hides is local variation. City rules, zoning, lease terms, building rules, and stay length can change permits, tax setup, staffing\n, and even which cleaning or access steps are allowed, so confirm the property rules before locking the budget.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCompare 3 Startup Cost Scenarios\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-scenario-table\" aria-label=\"Serviced Apartments Startup Cost Scenarios\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Serviced Apartments Startup Cost Scenarios\" data-note-label=\"Planning note\" data-note-text=\"These ranges are researched planning assumptions, not exact quotes or vendor bids.\"\u003e\u003cdiv class=\"fml-scenario-table-card\"\u003e\n\u003cheader class=\"fml-scenario-table-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-scenario-table-eyebrow\"\u003eScenario table\u003c\/p\u003e\n\u003cp class=\"fml-scenario-table-description\"\u003eLean trims units and shared amenities to test demand with less cash tied up. Base matches the 40-unit plan, while Full adds premium spaces and staffing for higher ADR and stronger guest expectations.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-actions\"\u003e\u003cbutton class=\"fml-scenario-table-export\" type=\"button\" data-scenario-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-scenario-table-wrap\"\u003e\u003ctable class=\"fml-scenario-table-grid\"\u003e\n\u003ccaption\u003eLean, Base, and Full launch costs for serviced apartments.\u003c\/caption\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth class=\"fml-scenario-table-stub\" scope=\"col\" data-export-value=\"Scenario\"\u003eScenario\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Lean Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eLean Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLowest cash risk\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Base Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eBase Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eBase planning case\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Full Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eFull Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003ePremium service model\u003c\/span\u003e\n\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Launch model\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-launch\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-launch-model.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eLaunch model\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Start with fewer leased units and only the core guest services needed to test demand.\"\u003eStart with fewer leased units and only the core guest services needed to test demand.\u003c\/td\u003e\n\u003ctd data-export-value=\"Run the 40-unit model with the researched operating mix and hotel-like service level.\"\u003eRun the 40-unit model with the researched operating mix and hotel-like service level.\u003c\/td\u003e\n\u003ctd data-export-value=\"Open with premium furnishing and the full amenity stack for corporate and extended-stay guests.\"\u003eOpen with premium furnishing and the full amenity stack for corporate and extended-stay guests.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Typical setup\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-setup\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-typical-setup.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eTypical setup\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Use basic furnishing, core housekeeping, and a smaller shared amenity set.\"\u003eUse basic furnishing, core housekeeping, and a smaller shared amenity set.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use the modeled apartment furnishing, housekeeping, and core concierge coverage.\"\u003eUse the modeled apartment furnishing, housekeeping, and core concierge coverage.\u003c\/td\u003e\n\u003ctd data-export-value=\"Add lobby bar, spa, meeting room, parking system, signage, and heavier service staffing.\"\u003eAdd lobby bar, spa, meeting room, parking system, signage, and heavier service staffing.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Cost drivers\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-drivers\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-cost-drivers.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eCost drivers\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Lower unit count; fewer amenities; smaller staffing; lighter lease exposure; lower setup spend\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eLower unit count\u003c\/li\u003e\n\u003cli\u003efewer amenities\u003c\/li\u003e\n\u003cli\u003esmaller staffing\u003c\/li\u003e\n\u003cli\u003elighter lease exposure\u003c\/li\u003e\n\u003cli\u003elower setup spend\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"40-unit mix; full housekeeping; concierge coverage; lease load; booking commissions\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003e40-unit mix\u003c\/li\u003e\n\u003cli\u003efull housekeeping\u003c\/li\u003e\n\u003cli\u003econcierge coverage\u003c\/li\u003e\n\u003cli\u003elease load\u003c\/li\u003e\n\u003cli\u003ebooking commissions\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Premium furnishing; lobby bar and spa; meeting room and parking; higher staffing; stronger amenity spend\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003ePremium furnishing\u003c\/li\u003e\n\u003cli\u003elobby bar and spa\u003c\/li\u003e\n\u003cli\u003emeeting room and parking\u003c\/li\u003e\n\u003cli\u003ehigher staffing\u003c\/li\u003e\n\u003cli\u003estronger amenity spend\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Planning range\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-range\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-planning-range.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003ePlanning range\u003c\/span\u003e\u003cspan class=\"fml-scenario-row-subtitle\"\u003eCAPEX only\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Below base case\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eBelow base case\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eCash-light\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$1.475M\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$1.475M\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eCore model\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"Above base case\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eAbove base case\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eAmenity-led\u003c\/span\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Best fit\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-fit\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-best-fit.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eBest fit\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Best for testing demand with limited cash and a tighter runway.\"\u003eBest for testing demand with limited cash and a tighter runway.\u003c\/td\u003e\n\u003ctd data-export-value=\"Best for a balanced launch using the modeled plan and operating cadence.\"\u003eBest for a balanced launch using the modeled plan and operating cadence.\u003c\/td\u003e\n\u003ctd data-export-value=\"Best for operators targeting higher ADR and stronger guest expectations.\"\u003eBest for operators targeting higher ADR and stronger guest expectations.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-note\"\u003e\n\u003cspan class=\"fml-scenario-table-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e These ranges are researched planning assumptions, not exact quotes or vendor bids.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49304289804531,"sku":"serviced-apartments-startup-costs","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/serviced-apartments-startup-costs.webp?v=1782691824","url":"https:\/\/financialmodelslab.com\/products\/serviced-apartments-startup-costs","provider":"Financial Models Lab","version":"1.0","type":"link"}