How to Calculate Your Monthly Laundry Costs for Holiday Rental Properties
Calculate laundry costs holiday rentals generate each month to understand your expenses and improve profitability. For Phuket property managers, tracking laundry costs helps control spending, manage linen and make informed decisions about using a professional laundry service.
When you manage several villas, apartments or Airbnb properties, these costs can quickly add up. Without accurate records, it can be difficult to know how much each property spends on laundry, whether your current arrangements offer good value and where savings might be possible.
Calculating your monthly laundry costs gives you a clearer picture of your operating expenses. It can also help you compare in-house laundry with professional laundry services, plan your linen requirements and make better business decisions.
In this guide, we’ll explain how to calculate laundry costs for holiday rentals, which expenses to include and how property managers in Phuket can use this information to manage their budgets more effectively.
1. Calculate How Much Laundry Your Properties Generate
The first step is to estimate how much laundry your properties produce each month.
Laundry volume depends on several factors, including the number of properties you manage, occupancy rates, average length of stay, number of guests and the amount of linen provided.
A three-bedroom villa accommodating six guests will generally generate more laundry per turnover than a small studio apartment.
Start by recording the following information for each property:
- Number of guest check-ins and check-outs per month.
- Average number of guests per booking.
- Number of bedrooms and bathrooms.
- Number of towels provided per guest.
- Number of bed linen sets changed per stay.
- Whether additional linen changes are requested during longer stays.
For example, a villa with frequent short bookings may require several complete linen changes each week. Another property with longer stays may generate fewer changes, even if its occupancy is similar.
Tracking laundry volumes separately for each property will help you understand which properties generate the highest costs.
If you outsource your laundry, record the kilograms processed per order. If you manage laundry internally, estimate the number of loads and the amount of linen processed.
2.Calculate Laundry Costs Holiday Rentals Owners Need to Track
If you use an external laundry supplier, your basic monthly cost calculation is straightforward.
Monthly laundry cost = Total kilograms processed × Price per kilogram
For example, suppose your holiday rental business processes 400 kg of laundry per month at an illustrative rate of ฿140 per kg.
Your calculation would be:
400 kg × ฿140 = ฿56,000 per month.
If your monthly volume increases to 500 kg at the same rate, the cost becomes:
500 kg × ฿140 = ฿70,000 per month.
That is an additional ฿14,000 in monthly laundry expenditure.
These figures are examples for calculation purposes, not a quotation or guarantee of current service prices.
When calculating your actual expenses, include any applicable minimum charges, collection fees, ironing charges, urgent-service fees or other additional costs.
Keep your invoices and order records so that you can compare your actual monthly expenditure with your budget.
3. Include Every Cost If You Wash Laundry In-House
Some holiday rental businesses wash their own linen rather than using a professional laundry supplier.
If this applies to you, remember that detergent and electricity are only part of the total cost.
Your monthly in-house laundry expenses may include:
Electricity
Washing machines and tumble dryers consume electricity. Frequent use can increase energy costs, particularly when laundry volumes are high.
Water
Every wash uses water, and the amount depends on the machine, wash programme, load size and washing practices.
Detergent and fabric care products
Include detergent, stain removers, fabric softeners and any other products used during processing.
Staff wages
Calculate how much time your employees spend sorting, washing, drying, folding and transporting laundry. Include the associated labour cost.
Equipment maintenance
Washing machines and dryers need servicing and may require repairs or replacement parts.
Equipment depreciation
Commercial laundry equipment has a limited useful life. Account for its purchase cost over the period in which you expect to use it.
Transport
If staff transport dirty and clean laundry between properties, include relevant fuel, vehicle maintenance and other transport expenses.
To calculate the full monthly cost, add these expenses together.
For example:
Electricity: ฿6,000
Water: ฿2,000
Detergents: ฿3,000
Laundry labour: ฿15,000
Maintenance allowance: ฿2,000
Equipment cost allowance: ฿3,000
Transport: ฿2,000
Total illustrative monthly cost: ฿33,000
These numbers are hypothetical and are not estimates of typical Phuket operating costs. Your actual expenses will depend on your equipment, staffing, laundry volume and property portfolio.
The important point is to include all relevant expenses rather than comparing a laundry service invoice with electricity costs alone.
4. Work Out Your Laundry Cost Per Property
If you manage multiple holiday rentals, calculate laundry expenditure for each property.
This helps you identify which villas or apartments generate the highest laundry costs and whether those costs are reasonable for their occupancy and size.
Use this formula:
Laundry cost per property = Total laundry cost attributed to the property
You can also calculate the cost per occupied night:
Laundry cost per occupied night = Monthly laundry cost ÷ Occupied nights
For example, suppose one villa generates ฿8,400 in monthly laundry costs and has 24 occupied nights.
฿8,400 ÷ 24 = ฿350 per occupied night.
This gives you a useful measure for budgeting and comparing properties.
However, remember that laundry is often driven by guest turnover rather than occupied nights alone. A property with several short bookings may need more linen changes than one with the same number of occupied nights but fewer, longer stays.
For a more complete picture, record both laundry cost per occupied night and laundry cost per guest turnover.
5. Calculate the Cost Per Guest Turnover
A guest turnover occurs when one booking ends and another begins, requiring the property to be prepared for new guests.
Laundry is often a significant part of this process because used towels and bed linen need to be replaced with clean items.
To calculate the average laundry cost per turnover, divide your monthly laundry expenditure by the number of turnovers.
Cost per turnover = Monthly laundry cost ÷ Number of guest turnovers
For example, a property management company spends ฿42,000 on laundry in one month and manages 60 guest turnovers.
฿42,000 ÷ 60 = ฿700 per turnover.
This calculation helps you estimate the laundry expense associated with preparing a property for each new booking.
If your costs increase, you can investigate whether the cause is higher occupancy, more frequent linen changes, heavier laundry loads or a change in supplier pricing.
You can also compare properties to see whether some require more linen or additional services.
The objective is not necessarily to achieve the lowest possible cost per turnover. It is to maintain suitable linen standards while managing expenses effectively.
6. Compare Laundry Costs With Your Property Revenue
Understanding laundry costs becomes more useful when you compare them with your rental income.
For example, if a property generates ฿180,000 in monthly rental revenue and spends ฿9,000 on laundry, laundry represents 5% of that revenue.
The calculation is:
฿9,000 ÷ ฿180,000 × 100 = 5%.
This percentage helps you understand the proportion of rental revenue being spent on laundry.
However, there is no single ideal percentage for every holiday rental. A luxury villa with extensive linen requirements may have a different cost structure from a small apartment.
Occupancy, guest numbers, nightly rates and the length of each stay can all influence the result.
Track the percentage over several months rather than judging your performance based on one month alone.
You can also compare laundry expenditure with other operating expenses, including housekeeping, maintenance, utilities and consumables.
This gives you a broader understanding of your property’s financial performance.
7. Compare In-House Laundry With Outsourcing
Once you know your monthly laundry costs, you can compare the financial implications of washing laundry internally with outsourcing it to a professional supplier.
Start by calculating your complete in-house costs, including labour, electricity, water, detergent, equipment maintenance, depreciation and transport.
Next, request a quotation from a commercial laundry supplier based on your actual laundry volume and service requirements.
For example, consider a business processing 400 kg of laundry per month.
Its in-house costs might look like this:
Labour: ฿15,000
Electricity and water: ฿8,000
Detergents: ฿3,000
Maintenance and equipment allowance: ฿5,000
Transport and handling: ฿2,000
Total: ฿33,000 per month.
Suppose a hypothetical external laundry quotation for the same volume and required services totals ฿38,000 per month.
The apparent difference is ฿5,000 per month.
However, you should also consider the staff time freed up by outsourcing, the space occupied by laundry equipment and the operational benefits of having laundry processed externally.
Equally, you should check that the quotation includes all necessary services and that collection and delivery arrangements meet your needs.
These figures are illustrative only. They are not actual supplier quotations or a claim that outsourcing will always cost more or less than in-house laundry.
The best option is the one that offers suitable quality, reliability and overall value for your specific business.
8. Track Linen Replacement Costs
Laundry expenditure does not end with washing and drying.
Towels and bed linen eventually need to be replaced because of normal wear, staining, damage or loss.
If linen deteriorates quickly, replacement costs can become an important part of your property operating budget.
Record how much you spend replacing sheets, pillowcases, towels and other washable items.
Where practical, record the approximate age of each batch of linen and investigate recurring damage or staining.
You should also establish clear procedures for identifying damaged items and reporting missing linen.
When evaluating a laundry supplier, ask how items are handled, how problems are reported and what procedures apply when laundry is returned damaged or incomplete.
Good linen management can help you understand replacement patterns and make more informed purchasing decisions.
Do not assume that a particular washing method will eliminate wear and tear. Linen lifespan depends on fabric quality, frequency of use, washing practices, storage and many other factors.
9. Build a Monthly Laundry Budget
Once you have collected several months of data, use it to establish a realistic laundry budget.
Your budget should reflect expected occupancy, booking patterns, property size and seasonal changes.
For each property, record:
- Expected guest turnovers.
- Estimated laundry volume in kilograms.
- Expected cost per kilogram or per load.
- Additional services such as ironing.
- Linen replacement allowance.
- Other relevant laundry expenses.
For an outsourced operation, you can estimate the monthly budget using expected kilograms multiplied by your agreed rate, then add any applicable additional charges.
For in-house laundry, use historical expenses and expected activity to estimate the costs of utilities, labour, supplies, maintenance and equipment.
Review your budget against actual spending every month.
If expenditure is higher than expected, investigate the reason before making changes.
For example, an increase may reflect higher occupancy rather than inefficiency. Alternatively, you may discover more frequent linen changes, additional ironing requirements or unnecessary urgent orders.
Understanding the cause helps you respond appropriately.
10. Reduce Unnecessary Laundry Expenses
Once you understand your costs, look for practical ways to improve efficiency without compromising cleanliness or guest comfort.
Maintain suitable linen stock levels.
Having enough linen available can reduce last-minute laundry requests and help housekeeping teams work more efficiently.
Coordinate housekeeping and laundry schedules.
Share upcoming check-in and check-out schedules with your laundry provider so that collection and delivery can be planned more effectively.
Monitor laundry volume.
Record the kilograms processed by each property and investigate unexpected increases.
Review additional services.
Check whether ironing or urgent processing is required for every order, or only for particular linen items and circumstances.
Protect linen.
Follow suitable washing, drying and storage practices to help maintain linen quality.
Compare suppliers carefully.
Review prices, quality, collection arrangements, communication and additional charges rather than selecting a provider on price alone.
Review costs regularly.
Monthly reporting helps you identify trends and make changes before small increases become significant annual expenses.
These steps can help you manage laundry spending while maintaining the standards expected by guests.
Why Laundry Love Phuket Can Help Property Managers
Laundry Love Phuket provides laundry pickup and delivery services across Phuket for individuals and businesses.
For villa owners and property management companies, outsourcing laundry can simplify the handling of towels, bed linen and other washable items across multiple properties.
If you already track your laundry costs, you can use those records to request a quotation based on your actual requirements.
Before comparing prices, establish your approximate monthly volume, required services and preferred collection and delivery arrangements.
This allows you to compare your current costs with an external service on a more consistent basis.
Learn more about our services:
Commercial Laundry Services:
https://laundrylovephuket.com/commercial-laundry-phuket/
Laundry for Property Managers:
https://laundrylovephuket.com/property-manager-laundry-phuket/
Website:
https://laundrylovephuket.com/
For a commercial enquiry, share the number of properties you manage, your approximate weekly laundry volume and your collection locations.
Laundry Love Phuket can then help you explore the available options for your business.
Frequently Asked Questions
How do I calculate monthly laundry costs for a holiday rental?
Add up all laundry-related expenses for the month. For outsourced laundry, include service charges and any additional fees. For in-house laundry, include labour, electricity, water, detergents, maintenance, equipment costs and transport.
How much should a holiday rental spend on laundry?
There is no universal amount. Costs depend on property size, occupancy, guest numbers, linen requirements, service rates and whether laundry is handled internally or externally. Track your actual expenses to establish a realistic budget.
Is outsourcing laundry cheaper than washing it yourself?
It can be, but not in every situation. Compare the full cost of in-house laundry with an external quotation covering the same volume and services. Consider staffing, equipment, utilities, linen quality and convenience as well as the direct price.
How can I calculate laundry cost per booking?
Divide the laundry costs attributable to a property by the number of guest turnovers during the same period. For a more accurate comparison, record the laundry volume and services required for each booking.
Should I track laundry costs separately for each villa?
Yes, where practical. Property-level records can help you identify differences in laundry usage, compare operating costs and prepare more accurate budgets.
What information should I give a commercial laundry supplier?
Provide your approximate weekly or monthly laundry volume, property locations, required services, collection arrangements and any special linen requirements. These details help the supplier assess your needs and provide relevant pricing information.
Conclusion
Calculating your monthly laundry costs is an important step towards managing a profitable holiday rental business.
By tracking laundry volume, including all relevant expenses and calculating costs per property and guest turnover, you can better understand where your money is going.
Regular reviews also help you compare in-house laundry with outsourcing, plan your linen requirements and identify opportunities to improve efficiency.
For Phuket property managers, the goal is to maintain clean, high-quality linen while controlling costs and keeping properties ready for incoming guests.
If you manage villas, apartments or holiday rentals across Phuket, Laundry Love Phuket can help you explore commercial laundry pickup and delivery options suited to your business.
Visit our commercial laundry page to learn more:
Laundry Love Phuket
Commercial Laundry Pickup & Delivery
Website: https://laundrylovephuket.com/
WhatsApp: +66 65 513 6224