How are you managing the cost of inventory across properties?
It's important to me that every unit, especially those I manage and do not own, covers its own expenses. And it doesn't always make sense to buy one (or more) of everything for each property. Instead, I'm looking to inventory all of our most common items centrally and then bill each property for what is brought to/used at each property.
I'd love to hear how you're managing this.
I have been managing five efficiency apartments within the same building for the last 7-8yrs. Each unit is charged a modest cleaning fee. A small portion of this fee is allocated toward guest-related supplies such as laundry products, coffee, snacks, and general cleaning items. The property owner covers all other expenses, and if I purchase items outside of that allowance, I expense them directly to him.
We structured the cleaning fee this way because Airbnb’s split payout feature allows me to receive my commission directly and immediately. If we categorized it differently, the owner would automatically receive a percentage, and I’d have to bill him for the difference. By assigning the cleaning fee to me as the co-host, funds are deposited into a separate account, eliminating the need for back-and-forth billing related to Airbnb reservations.
For all other booking channels, I invoice the owner for both commission and cleaning fees. Direct bookings are paid directly to me, and we reconcile monthly with a full report, including Airbnb activity. Any expenses not covered by the cleaning fee portion, I bill him at the end of the month.
When we first set this system up, we were learning as we went, and I recognize there are elements I wouldn’t structure the same way with a new owner. For example, with another home I manage, the owner prefers I provide an Amazon wish list for supplies, which she fulfills directly. For out-of-pocket expenses such as propane for the BBQ, I simply send her an invoice after each checkout.
Not sure if this is helpful to you or not, but it's how we cover supply expenses. I would love to simplify with the current owner, but it strangely just works for us 😆
Thank you for sharing your experience. Much appreciated!
