Real estate management cost breakdown: subcontracted work is the largest line

Real estate management differs sharply from construction even though both touch a building: construction is BUILDING NEW, while this is OPERATING a property that's ALREADY leased out - take it over, keep it in good condition, hand it back to the tenant, repeating on an operating cycle.

The costing unit: ONE SQUARE METER MANAGED FOR ONE MONTH.

The process sequence

1. Takeover/handover of the property.
2. Scheduled cleaning.
3. Landscaping.
4. Technical maintenance - electrical, plumbing, elevators, HVAC.
5. Handling incidents as they arise.
6. Handover to the tenant/owner.

Two features unique to this industry

1. The unit is square meters managed PER MONTH

Same space-times-time principle as warehousing, but for a different purpose: this is the cost of OPERATING a leased property, not the cost of STORING goods. Cost against the actual area managed that month, not the whole complex's area if you're only managing part of it.

2. Subcontracted work - the LARGEST category, unlike manufacturing

Most of the actual work (cleaning, landscaping, specialized technical maintenance) is handed to service contractors rather than done in-house, unlike manufacturing where material or machinery usually leads. When costing this out, this is the category worth the most effort to get right, since it carries the largest share of cost.

Everything else

Material (minor repair supplies - paint, patch construction material, cleaning chemicals - per occurrence, not by batch). Machinery (industrial cleaning equipment, plumbing maintenance tools - OWNED if there's an in-house cleaning crew, or nonexistent if fully outsourced). Labor (security, front desk, on-site technicians if any). Consumables (consumable cleaning supplies). Rework (fixing a recurring issue after an initial repair).

Packaging (not applicable). Freight (negligible, except moving major repair materials). Overhead - depreciation or rent of the on-site management office, property insurance, and shared building management fees if the property sits within a larger complex.

Evidence

• Service contracts with cleaning/landscaping/maintenance vendors.
• Handover records and periodic sign-off with the owner/tenant.
• Incident log with resolution time.
• Minor repair supply invoices per occurrence.