What puts the `service' into serviced apartments?

What puts the `service' into serviced apartments?

Gunawan Yonatan
Associate Director,
Property Management Department,
PT Procon Indah

When you think of serviced apartments perhaps the only real
points of difference you associate with them, is a small
kitchenette and a daily cleaning service.

But what is it that really differentiates serviced apartments
from regular rental apartments or standard hotel rooms, and
justifies the higher charges they always seem to command? Perhaps
the answer lies in the role and quality of those responsible for
putting the "service" into serviced apartments.

So what services do they provide?

It is the intention of serviced apartments to endeavor to
match the same level of facilities provided by hotels. These may
include business centers, good quality health clubs with the
latest equipment (providing sports instructors and even 'sparring
partners'), nice restaurants or coffee shops, a drugstore (with
delivery service), cable television and broadband internet
access, playgrounds for children (outdoor & indoor), laundry
services and even beauty salons and spas.

But let's be frank, these are the very basic facilities
expected of any regular apartment building these days. So where's
the added value? Well, in those quality serviced apartment
projects this begins with tenant relations or customer services.

Their job is to provide service excellence to all tenants
especially in handling and following up complaints and building
good relationships with residents to satisfy and anticipate
residents' needs. Such service excellence extends also to the on-
duty concierge and doorman, who are expected to help residents
handle their transportation, luggage and even the carrying of
grocery bags. Pick up and delivery services for newspapers,
bills, letters and laundry are other services provided which
define the serviced apartment sector. They can even offer
services to process the payment of resident's utility (water,
electricity) charges and telephone bills.

The management of any serviced apartment should comprise a
fully-dedicated, top-service oriented team. This 24-hour team
should include a duty manager, front office staff, engineer and
housekeeper whose sole purpose is to handle residents needs and
react to issues as they arise. There is often a higher percentage
of staff able to communicate in English and other international
languages, compared to staffing of regular apartments.

The service quality even extends to security, where the focus
is on maintaining not just safety but also the privacy of
residents. Guests are treated politely and residents are informed
of their arrival to seek their approval to permit the guests'
entry. The guests are even escorted to the units.

Internally, service provisions extend to providing fully
furnished units, not just furniture, but right down to complete
ranges of electronic appliances (such as clothes washer & dryer,
stove, microwave oven, refrigerator, television), as well as
crockery, glassware, utensils and even a water dispenser.
Basically, new residents just need their suitcases when they move
in or out.

In addition, there are housekeeping services to clean inside
apartment units periodically (2-3 times or more per week), and to
provide clean towels, bed sheets and pillow-cases etc, meaning
that no live-in maids are needed. An engineering team providing
response services free of charge in reaction to any complaints
related to engineering matters, or requests for small works of
repair, including to air-conditioning units or even to change a
light bulb.

Though hotels can claim to provide many of the above
facilities and services, the main difference with serviced
apartments is the size of the unit.

Hotel rooms are generally smaller with more limited in-room
facilities. We can more liken a hotel room to a "studio" in terms
of its layout, whereas a serviced apartment unit provides a "home
ambience", with more space for the tenant, greater privacy, and
enhanced facilities such as a kitchen, living room, separate
dining area and clothes washing area.

In respect of the serviced apartment building itself, the
maintenance of the fabric of the building, its facilities, common
areas, lobbies, driveways, landscaping, and other surroundings,
is implemented based on preventive measures in order to maintain
quality.

Whilst pricing is normally higher compared to non-serviced
apartment units, this is perhaps not surprising when we consider
the extra service and facilities provided. Day-to-day operation
costs are definitely much higher when compared to non-serviced
apartments.

Rental rates can differ by up to US$200 to US$400 per month
compared to regular rental apartments, again this is partly due
to the services delivered but also that the acceptable lease
period can be shorter, where weekly, or even daily rates can be
secured.

Typical lease periods for serviced apartments are one to eight
weeks for short-term contracts and medium term leases range from
two to 12 months. The tenant profile usually comprises
expatriates with no children, employed in Indonesia on a shorter-
term contract basis, where individuals employed or planning to
live in Jakarta for more than 12 months tend to prefer to live in
regular apartment units or houses.