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.