| The Studio Apartment considered for this Case Study is a Private & Detached Studio Apartment in SoHo Garden area of South Hobart. Apart from offering 17 amenities, which include Kitchen, Iron, Shampoo, Hair Dryer, Laptop friendly workplace with Internet connection, the Studio Apartment also offers total privacy to a couple. | ||||||||
| The Studio Apartment is available at Per Night Charge of $106.00 during the Off-peak season time and at Per Night Charge of $130.00 during Peak season time. | ||||||||
| Considering that the Off-peak Season lasts for about 3 months in a year and the Peak Season remains for the remaining 9 months of the year, it is also assumed that the Occupancy Rate during Off-peak Season will be 60% and the Occupancy Rate during Peak Season will be 90%, the Annual Earning from the Studio Apartment will be as calculated below for both Off-peak as well as Peak Season durations. All amounts are inclusive of applicable GST. | ||||||||
| Annual Earning based on chosing the BUDGET quality Fittings & Furniture. The total conversion cost will be spread over a 5 year period. | ||||||||
| Conversion Cost – Budget Quality Fittings & Furniture | ||||||||
| Building Contractor’s Charges | $ 25,000.00 | |||||||
| Cost of Decking, Paving and Patio Material | $ 20,000.00 | |||||||
| Structural Improvements – include Windows, Floors and Ceilings | $ 35,000.00 | |||||||
| Budget Quality Fittings & Furniture for Bathroom, Kitchnette and Bedroom | $ 10,000.00 | |||||||
| Sub-Contractor’s Charges | $ 20,000.00 | |||||||
| Total Conversion Cost | $ 1,10,000.00 | |||||||
| Details of Receipts | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Receipts @ $106/night for 92 nights @ 60% occupancy | ||||||||
| $ 5,851.20 | $ 5,851.20 | |||||||
| Receipts @ $130/night for 273 nights @ 90% occupancy | ||||||||
| $ 31,941.00 | $ 31,941.00 | |||||||
| TOTAL RECEIPTS | $ 5,851.20 | $ 31,941.00 | $ 37,792.20 | |||||
| Details Maintenance Expenses | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Conversion Cost | $ 5,500.00 | $ 16,500.00 | $ 22,000.00 | |||||
| (Based on Budget Quality Fittings & Furniture) | ||||||||
| Airbnb Guest Service Fee | $ 292.56 | $ 1,597.05 | $ 1,889.61 | |||||
| (5% – including Cleaning Charges) | ||||||||
| Annual Cost of Water Service | $ 133.75 | $ 401.25 | $ 535.00 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Fire Service | $ 33.43 | $ 100.29 | $ 133.72 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Energy | $ 19.43 | $ 58.30 | $ 77.73 | |||||
| (Residential Light & Power-269.8 kwh @$0.26431/kwh) | ||||||||
| Annual Cost of Energy | $ 27.08 | $ 81.24 | $ 108.32 | |||||
| (Heating & Hotwater-579.0 kwh @$0.17164/kwh) | ||||||||
| Annual Cost of Network | $ 294.30 | $ 882.90 | $ 1,177.20 | |||||
| (OPTUS – Unlimited Data Plan – $1,177.20/year) | ||||||||
| Home Loan EMI | $ 912.00 | $ 2,736.00 | $ 3,648.00 | |||||
| (Calculated on Loan Amount of $600,000 being 80% of Purchase Price of $750,000. Area of the Apartment is assumed to be 10% of the total area of the house. Monthly EMI of $3,040 isaccordingly apprtioned to $304 for the Apartment.) | ||||||||
| Annual Environmental Cost | $ 4.50 | $ 13.50 | $ 18.00 | |||||
| (Minimum Waste Disposal Fee including Green Waste) | ||||||||
| TOTAL EXPENSES | $ 7,217.05 | $ 22,370.53 | $ 29,587.58 | |||||
| NET EARNING | -$1,365.85 | $ 9,570.47 | $ 8,204.62 | |||||
| MANAGEMENT & COST ACCOUNTING | ||||||||
| The Studio Apartment considered for this Case Study is a Private & Detached Studio Apartment in SoHo Garden area of South Hobart. Apart from offering 17 amenities, which include Kitchen, Iron, Shampoo, Hair Dryer, Laptop friendly workplace with Internet connection, the Studio Apartment also offers total privacy to a couple. | ||||||||
| The Studio Apartment is available at Per Night Charge of $106.00 during the Off-peak season time and at Per Night Charge of $130.00 during Peak season time. | ||||||||
| Considering that the Off-peak Season lasts for about 3 months in a year and the Peak Season remains for the remaining 9 months of the year, it is also assumed that the Occupancy Rate during Off-peak Season will be 60% and the Occupancy Rate during Peak Season will be 90%, the Annual Earning from the Studio Apartment will be as calculated below for both Off-peak as well as Peak Season durations. All amounts are inclusive of applicable GST. | ||||||||
| Annual Earning based on chosing the PREMIUM quality Fittings & Furniture. The total conversion cost will be spread over a 5 year period. | ||||||||
| Conversion Cost – Premium Quality Fittings & Furniture | ||||||||
| Building Contractor’s Charges | $ 25,000.00 | |||||||
| Cost of Decking, Paving and Patio Material | $ 20,000.00 | |||||||
| Structural Improvements – include Windows, Floors and Ceilings | $ 35,000.00 | |||||||
| Premium Quality Fittings & Furniture for Bathroom, Kitchnette and Bedroom | $ 40,000.00 | |||||||
| Sub-Contractor’s Charges | $ 20,000.00 | |||||||
| Total Conversion Cost | $ 1,40,000.00 | |||||||
| Details of Receipts | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Receipts @ $106/night for 92 nights @ 60% occupancy | ||||||||
| $ 5,851.20 | $ 5,851.20 | |||||||
| Receipts @ $130/night for 273 nights @ 90% occupancy | ||||||||
| $ 31,941.00 | $ 31,941.00 | |||||||
| TOTAL RECEIPTS | $ 5,851.20 | $ 31,941.00 | $ 37,792.20 | |||||
| Details Maintenance Expenses | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Conversion Cost | $ 7,000.00 | $ 21,000.00 | $ 28,000.00 | |||||
| (Based on Premium Quality Fittings & Furniture) | ||||||||
| Airbnb Guest Service Fee | $ 292.56 | $ 1,597.05 | $ 1,889.61 | |||||
| (5% – including Cleaning Charges) | ||||||||
| Annual Cost of Water Service | $ 133.75 | $ 401.25 | $ 535.00 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Fire Service | $ 33.43 | $ 100.29 | $ 133.72 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Energy | $ 19.43 | $ 58.30 | $ 77.73 | |||||
| (Residential Light & Power-269.8 kwh @$0.26431/kwh) | ||||||||
| Annual Cost of Energy | $ 27.08 | $ 81.24 | $ 108.32 | |||||
| (Heating & Hotwater-579.0 kwh @$0.17164/kwh) | ||||||||
| Annual Cost of Network | $ 294.30 | $ 882.90 | $ 1,177.20 | |||||
| (OPTUS – Unlimited Data Plan – $1,177.20/year) | ||||||||
| Home Loan EMI | $ 912.00 | $ 2,736.00 | $ 3,648.00 | |||||
| (Calculated on Loan Amount of $600,000 being 80% of Purchase Price of $750,000. Area of the Apartment is assumed to be 10% of the total area of the house. Monthly EMI of $3,040 isaccordingly apprtioned to $304 for the Apartment.) | ||||||||
| Annual Environmental Cost | $ 4.50 | $ 13.50 | $ 18.00 | |||||
| (Minimum Waste Disposal Fee including Green Waste) | ||||||||
| TOTAL EXPENSES | $ 8,717.05 | $ 26,870.53 | $ 35,587.58 | |||||
| NET EARNING | -$2,865.85 | $ 5,070.47 | $ 2,204.62 | |||||
| The Studio Apartment considered for this Case Study is a Private & Detached Studio Apartment in SoHo Garden area of South Hobart. Apart from offering 17 amenities, which include Kitchen, Iron, Shampoo, Hair Dryer, Laptop friendly workplace with Internet connection, the Studio Apartment also offers total privacy to a couple. | ||||||||
| The Studio Apartment is available at Per Night Charge of $106.00 during the Off-peak season time and at Per Night Charge of $130.00 during Peak season time. | ||||||||
| Considering that the Off-peak Season lasts for about 3 months in a year and the Peak Season remains for the remaining 9 months of the year, it is also assumed that the Occupancy Rate during Off-peak Season will be 60% and the Occupancy Rate during Peak Season will be 90%, the Annual Earning from the Studio Apartment will be as calculated below for both Off-peak as well as Peak Season durations. All amounts are inclusive of applicable GST. | ||||||||
| Annual Earning based on chosing the STANDARD quality Fittings & Furniture. The total conversion cost will be spread over a 10 year period. | ||||||||
| Conversion Cost – Standard Quality Fittings & Furniture | ||||||||
| Building Contractor’s Charges | $ 25,000.00 | |||||||
| Cost of Decking, Paving and Patio Material | $ 20,000.00 | |||||||
| Structural Improvements – include Windows, Floors and Ceilings | $ 35,000.00 | |||||||
| Standard Quality Fittings & Furniture for Bathroom, Kitchnette and Bedroom | $ 25,000.00 | |||||||
| Sub-Contractor’s Charges | $ 20,000.00 | |||||||
| Total Conversion Cost | $ 1,25,000.00 | |||||||
| Details of Receipts | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Receipts @ $106/night for 92 nights @ 60% occupancy | ||||||||
| $ 5,851.20 | $ 5,851.20 | |||||||
| Receipts @ $130/night for 273 nights @ 90% occupancy | ||||||||
| $ 31,941.00 | $ 31,941.00 | |||||||
| TOTAL RECEIPTS | $ 5,851.20 | $ 31,941.00 | $ 37,792.20 | |||||
| Details Maintenance Expenses | Off-Peak Season | Peak Season | TOTAL for the Year | |||||
| Receipts | Expenses | Receipts | Expenses | |||||
| Conversion Cost | $ 3,125.00 | $ 9,375.00 | $ 12,500.00 | |||||
| (Based on Standard Quality Fittings & Furniture) | ||||||||
| Airbnb Guest Service Fee | $ 292.56 | $ 1,597.05 | $ 1,889.61 | |||||
| (5% – including Cleaning Charges) | ||||||||
| Annual Cost of Water Service | $ 133.75 | $ 401.25 | $ 535.00 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Fire Service | $ 33.43 | $ 100.29 | $ 133.72 | |||||
| (Fixed Target Charges-25mm size) | ||||||||
| Annual Cost of Energy | $ 19.43 | $ 58.30 | $ 77.73 | |||||
| (Residential Light & Power-269.8 kwh @$0.26431/kwh) | ||||||||
| Annual Cost of Energy | $ 27.08 | $ 81.24 | $ 108.32 | |||||
| (Heating & Hotwater-579.0 kwh @$0.17164/kwh) | ||||||||
| Annual Cost of Network | $ 294.30 | $ 882.90 | $ 1,177.20 | |||||
| (OPTUS – Unlimited Data Plan – $1,177.20/year) | ||||||||
| Home Loan EMI | $ 912.00 | $ 2,736.00 | $ 3,648.00 | |||||
| (Calculated on Loan Amount of $600,000 being 80% of Purchase Price of $750,000. Area of the Apartment is assumed to be 10% of the total area of the house. Monthly EMI of $3,040 isaccordingly apprtioned to $304 for the Apartment.) | ||||||||
| Annual Environmental Cost | $ 4.50 | $ 13.50 | $ 18.00 | |||||
| (Minimum Waste Disposal Fee including Green Waste) | ||||||||
| TOTAL EXPENSES | $ 4,842.05 | $ 15,245.53 | $ 20,087.58 | |||||
| NET EARNING | $ 1,009.15 | $ 16,695.47 | $ 17,704.62 | |||||
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