{"id":51616,"date":"2021-10-22T11:00:12","date_gmt":"2021-10-22T09:00:12","guid":{"rendered":"https:\/\/www.ovonetwork.com\/blog\/?p=51616"},"modified":"2023-01-25T09:32:21","modified_gmt":"2023-01-25T08:32:21","slug":"the-cost-breakdown-of-renting-out-a-ski-chalet","status":"publish","type":"post","link":"https:\/\/www.ovonetwork.com\/blog\/the-cost-breakdown-of-renting-out-a-ski-chalet\/","title":{"rendered":"The Cost Breakdown of Renting Out a Ski Chalet"},"content":{"rendered":"\n<p><strong>A simple <a href=\"https:\/\/www.ovonetwork.com\/blog\/the-cost-breakdown-of-renting-out-a-ski-chalet\/\">cost breakdown <\/a>will help you to manage your ski chalet rental business efficiently from its inception. Below, we\u2019ll run through the key financial considerations for a self-catered ski chalet business.\u00a0<\/strong><\/p>\n\n\n\n<p><strong>You\u2019ll then be able to accurately estimate your operating costs per booking. This will allow you to calculate your all-important minimum weekly pricing, to ensure that you not only cover costs but also make yourself a tidy profit!<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-your-personal-goals\"><strong>What are your personal goals?<\/strong><\/h2>\n\n\n\n<p>Of course, every owner will have their own targets when it comes to budgeting for a ski <a href=\"https:\/\/www.ovonetwork.com\/blog\/chalet-equipment\/\">chalet rental<\/a>. Some will want the chalet to \u201cwash its face\u201d, whilst they get the benefit of using it too. Others will see it as an investment opportunity first and foremost and focus heavily on high yield and returns. In our experience, we find that the majority of owners will fall somewhere in between these two extremes.<\/p>\n\n\n\n<p>So, you\u2019ll need to consider your ski chalet running costs, as well as overheads, fixed and variable costs. Gaining an understanding of these will help inform those crucial minimum pricing decisions. Once you\u2019ve done so, you will then be able to make further informed choices on where you can and can\u2019t be flexible. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does it make sense to have special offer pricing for repeat guests?<\/li>\n\n\n\n<li>Are there some weeks you simply can\u2019t afford to budge on price?<\/li>\n<\/ul>\n\n\n\n<p><strong>Let\u2019s take a look at a case study from one of our owners to help you get a clearer idea. <\/strong><\/p>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Please note \u2013 prices for cleaning and laundry differ according to ski resort and the type of local management solution on offer \u2013 these are guide prices only.<\/span><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-cost-breakdown-renting-out-a-ski-chalet-for-8-people-paying-2500-for-one-week\"><strong>A cost breakdown: renting out a ski chalet for 8 people paying 2500\u20ac for one week<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><\/td><td><strong>Variable costs per stay<\/strong><\/td><\/tr><tr><td>Guest Management\u00a0<\/td><td>150\u20ac per booking<\/td><td>150\u20ac<\/td><\/tr><tr><td>Cleaning (6 hours)<\/td><td>25\u20ac per hour<\/td><td>150\u20ac<\/td><\/tr><tr><td>Sheets (4 double beds)<\/td><td>25\u20ac per bed<\/td><td>100\u20ac<\/td><\/tr><tr><td>Towels (8 bath, 8 hand)<\/td><td>10\u20ac per pers<\/td><td>80\u20ac<\/td><\/tr><tr><td>OVO service fee<\/td><td>10% of the booking<\/td><td>250\u20ac<\/td><\/tr><tr><td>Water, electricity<\/td><td><\/td><td>30\u20ac<\/td><\/tr><tr><td>Welcome gift<\/td><td><\/td><td>20\u20ac<\/td><\/tr><tr><td><\/td><td><strong>Total<\/strong><\/td><td><strong>\u20ac780<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"block-ovo-cta-button\">\n  <div class=\"wp-block-button\">\n    <a href=\"https:\/\/www.ovonetwork.com\/en\/rental-yield-calculator\" target=\"_blank\" class=\"wp-block-button__link\">Estimate your income<\/a>\n  <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fixed-costs\"><strong>Fixed costs:<\/strong><\/h2>\n\n\n\n<p>To estimate fixed costs, divide the total amount of your annual fixed costs by the number of weeks occupied (including weeks when you will stay at the property with your family).\u00a0<\/p>\n\n\n\n<p>Here\u2019s an example for a property occupied for 25 weeks a year:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Annual fixed costs<\/td><td>Occupation\u00a0<\/td><td><strong>Fixed costs per stay<\/strong><\/td><\/tr><tr><td>8000\u20ac<\/td><td>25 weeks<\/td><td><strong>320\u20ac<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The addition of variable costs + fixed costs gives you an estimate of the amount of expenses to cover during a stay (1100 \u20ac in our example). So, your profit on a booking worth 2500\u20ac would be roughly 1400\u20ac.<\/p>\n\n\n\n<p>However, make sure to remember not to consider fixed costs when deciding on your minimum price, because you will incur the fixed cost whether you have bookings or not.<\/p>\n\n\n\n<p><strong>Remember, the minimum price you offer for a stay must be greater than the total amount of your expenses to generate a profit. Also note that prices and costs will inevitably vary depending on the resort.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-minimising-costs\"><strong>Minimising costs<\/strong><\/h2>\n\n\n\n<p>With this in mind, you might be thinking: what\u2019s the best way to keep my outgoings as low as possible? Do bear in mind here that at the higher end of the market, you want to avoid cutting corners.<\/p>\n\n\n\n<p>Instead, aim to strike the right balance between controlling expenditure and providing guests with what they expect. For instance, we always recommend owners provide a <a href=\"https:\/\/www.ovonetwork.com\/blog\/chalet-equipment\/\">welcome basket, toiletries and cleaning materials <\/a>in their properties. Although this is an extra cost, small touches like this massively increase your chances of receiving positive feedback and repeat bookings. Check out our blog on the typical\u00a0<a href=\"https:\/\/www.ovonetwork.com\/blog\/welcome-basket\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>small touches<\/strong><\/a>\u00a0we know our guests appreciate from feedback. <\/p>\n\n\n\n<p>Another important note: be mindful of Covid related increased costs at this time. Things such as extra time required, changes in cleaning procedures and expenses such as PPE and professional cleaning products should all be factored in.<\/p>\n\n\n\n<p>We hope this breakdown of ski chalet overheads, fixed, variable and running costs has been helpful to you!\u00a0<\/p>\n\n\n<!-- Start SVG for Props Slider -->\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"display: none;\">\n    <symbol id=\"icon-book\" viewBox=\"0 0 512 512\">\n        <path d=\"m354 276l-158 76 0-36 94-42c11-5 21-9 32-13-8-3-18-7-30-12l-96-44 0-35 158 75 0 31z m-101-258c133 0 241 108 241 241 0 133-108 241-241 241-133 0-241-108-241-241 0-133 108-241 241-241z m0 458c120 0 217-97 217-217 0-120-97-217-217-217-120 0-217 97-217 217 0 120 97 217 217 217z\"\/>\n    <\/symbol>\n    <symbol id=\"icon-ovo\" viewBox=\"0 0 512 512\">\n      <path d=\"m259 494c-130 0-236-105-236-235 0-130 106-236 236-236 130 0 235 106 235 236 0 130-105 235-235 235z m0-447c-117 0-212 95-212 212 0 117 95 212 212 212 117 0 212-95 212-212 0-117-95-212-212-212z m-71 308l155-72c0 0 13-28 0-57l-155-70c0 0-10 23 1 50l100 45c0 0 10 3 0 7-12 5-101 45-101 45 0 0-7 26 0 52z\"\/>\n    <\/symbol>\n    <symbol id=\"icon-ovo-circle-left\" viewBox=\"0 0 43.47 43.47\">\n        <circle class=\"circle-ovo\" cx=\"21.73\" cy=\"21.73\" r=\"19.23\" \/>\n        <path d=\"M13.12 20.44l13.23-6.32v3l-7.92 3.57q-1.28.58-2.67 1.06 1 .38 2.52 1l8.07 3.69v2.89l-13.23-6.27z\" fill=\"#fff\" fill-opacity=\"1\"\/>\n    <\/symbol>\n    <symbol id=\"icon-ovo-circle-right\" viewBox=\"0 0 43.47 43.47\">\n        <circle class=\"circle-ovo\" cx=\"21.73\" cy=\"21.73\" r=\"19.23\" \/>\n        <path d=\"M30.35 23l-13.23 6.35v-3L25 22.81q1.28-.58 2.67-1.06-1-.38-2.52-1L17.12 17v-2.88l13.23 6.28z\" fill=\"#fff\" fill-opacity=\"1\"\/>\n    <\/symbol>\n<\/svg>\n<!-- End SVG for Props Slider -->\n\n<!-- Start HTML for Props Slider -->\n<h2 style=\"text-align: center;\">Browse properties we work with<\/h2>\n\n<div class=\"container-fluid container-fluid-otherprops container-white\">\n    <div class=\"fade-right\">\n        <div class=\"hero-arrow hero-arrow-left\">\n            <svg class=\"icon icon-ovo-circle-left\"><use xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" xlink:href=\"#icon-ovo-circle-left\"><\/use><\/svg>\n        <\/div>\n    <\/div>\n    <div class=\"slider-otherprops rsDefault\" data-filters=\"&destination=0\">\n        <!-- Slider loaded via ajax depending on resolution -->\n        <div class=\"new-props-loading\">\n            <span class=\"loader-dot\">.<\/span><span class=\"loader-dot\">.<\/span><span class=\"loader-dot\">.<\/span>\n        <\/div>\n    <\/div>\n    <div class=\"fade-left\">\n        <div class=\"hero-arrow hero-arrow-right\">\n            <svg class=\"icon icon-ovo-circle-right\"><use xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" xlink:href=\"#icon-ovo-circle-right\"><\/use><\/svg>\n        <\/div>\n    <\/div>\n<\/div>\n<!-- End HTML for Props Slider -->\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><br><strong>Now for the fun bit! Head on over to our\u00a0<a href=\"https:\/\/www.ovonetwork.com\/en\/complete\" target=\"_blank\" rel=\"noreferrer noopener\">rental calculator<\/a>\u00a0to estimate what your income could be. <\/strong><\/p>\n\n\n\n<p><strong>Once you have an idea of how much your project may cost to run, why not run through\u00a0<a href=\"https:\/\/www.ovonetwork.com\/en\/home?s=destinations\" target=\"_blank\" rel=\"noreferrer noopener\">our destinations<\/a>? <\/strong><\/p>\n\n\n\n<p><strong>Here you can find out at what pricing has been set for the type of ski chalet or apartment you might like to own. You\u2019re one step closer to the dream!<\/strong><\/p>\n\n\n\n<div class=\"block-ovo-cta-button\">\n  <div class=\"wp-block-button\">\n    <a href=\"https:\/\/www.ovonetwork.com\/en\/rental-yield-calculator\" target=\"_blank\" class=\"wp-block-button__link\">Estimate your income<\/a>\n  <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A simple cost breakdown will help you to manage your ski chalet rental business efficiently from its inception. Below, we\u2019ll run through the key financial considerations for a self-catered ski chalet business.\u00a0 You\u2019ll then be able to accurately estimate your operating costs per booking. This will allow you to calculate your all-important minimum weekly pricing, to ensure that you not only cover costs but also make yourself a tidy profit! What are your personal goals? Of course, every owner will have their own targets when it comes to budgeting for a ski chalet rental. Some will want the chalet to \u201cwash its face\u201d, whilst they get the benefit of using it too. Others will see it as an investment opportunity first and foremost and focus heavily on high yield and returns. In our experience, we [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":51723,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[948,950],"tags":[663,327,541,723],"class_list":["post-51616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-starting-out","tag-property-investment","tag-property-rental","tag-property-rental-business","tag-revenue-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.9 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Cost Breakdown of Renting Out a Ski Chalet | OVO Network<\/title>\n<meta name=\"description\" content=\"We&#039;re often asked how owners estimate their rental home running costs. 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Our simple cost breakdown can help owners estimate overheads.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ovonetwork.com\/blog\/the-cost-breakdown-of-renting-out-a-ski-chalet\/\" \/>\n<meta property=\"og:site_name\" content=\"OVO Network\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ovonetwork\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-22T09:00:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-25T08:32:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ovonetwork.com\/blog\/wp-content\/uploads\/2021\/10\/0601-fougeres-er-150211-dusk-02-RJ3-OTA-Crop.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Katie Reeves\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katie Reeves\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/\"},\"author\":{\"name\":\"Katie Reeves\",\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/#\\\/schema\\\/person\\\/cdcfa97d55630663cfbbac35b59bb882\"},\"headline\":\"The Cost Breakdown of Renting Out a Ski Chalet\",\"datePublished\":\"2021-10-22T09:00:12+00:00\",\"dateModified\":\"2023-01-25T08:32:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/\"},\"wordCount\":741,\"publisher\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/0601-fougeres-er-150211-dusk-02-RJ3-OTA-Crop.jpg\",\"keywords\":[\"property investment\",\"Property Rental\",\"Property rental business\",\"revenue management\"],\"articleSection\":[\"Investment\",\"Starting Out\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/\",\"url\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/\",\"name\":\"The Cost Breakdown of Renting Out a Ski Chalet | OVO Network\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/the-cost-breakdown-of-renting-out-a-ski-chalet\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ovonetwork.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/0601-fougeres-er-150211-dusk-02-RJ3-OTA-Crop.jpg\",\"datePublished\":\"2021-10-22T09:00:12+00:00\",\"dateModified\":\"2023-01-25T08:32:21+00:00\",\"description\":\"We're often asked how owners estimate their rental home running costs. 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