The cost of building a boarding house is one of the most common questions for prospective property investors looking to start a boarding house business. Building a 10-room boarding house can be a profitable investment, provided you understand the cost components from the start.
In the world of construction, there are many factors that influence total expenses, ranging from architectural design, land area, building materials, to the contractor services you choose.
If you use contractor services for boarding houses & experienced shophouses, the costs may seem higher at first, but the results are much more efficient and durable in the long run.
This article will discuss beginner's guide to building a boarding house especially in detail about how much capital is needed to build a 10-room boarding house, how to calculate it, as well as tips for saving costs without reducing the quality of the building.
Why Boarding Houses Are an Attractive Investment
Before delving into the cost of building a boarding house, it's important to understand why this type of property is so popular. Boarding houses offer the potential for stable passive income, especially in densely populated areas like university campuses, industrial areas, or office buildings.
With a monthly rental system, your initial investment can be returned within 5–7 years depending on the location and occupancy rate.
Building a boarding house isn't just about investing a large amount of capital, but also about long-term strategy. Design, occupant comfort, and space efficiency are key factors in determining the success of this business.
Therefore, many landowners now collaborate with professional home architects or contractors to ensure that their buildings meet their needs and target market.
Overview of the Costs of Building a 10-Room Boarding House
In general, the cost of building a 10-room boarding house depends on three main components:
- Building area and number of floors
- Specifications of the materials used
- Work system (piecework or daily)
For a simple, 10-bedroom, one-story boarding house project with an area of around 200–250 m², costs can range from Rp 700 million to Rp 1.2 billion, depending on the quality of the materials and location. Using a contract contractor can be more cost-effective, as the cost includes materials, labor, and project supervision.
Meanwhile, for a two-story building, the cost can double due to the need to reinforce the foundation and columns. While more expensive, the two-story boarding house concept can increase the number of units and increase long-term income.
Main Cost Components in Boarding House Construction
When calculating the capital to build a boarding house, it is important to understand the details of each element so that you can plan your budget realistically.
Preparation and Licensing Fees
The initial stage includes purchasing or clearing land, managing it PBG permit (Building Approval), as well as architectural planning.
If you use the services of a home architect, the cost ranges from IDR 100,000 – IDR 300,000 per m², depending on the complexity of the design.
This cost is very important because the architect's design helps maximize space and minimize construction errors in the field.
Structure and Foundation
This section accounts for approximately 30–40% of the total building cost. The structure includes foundation work, sloof, columns, and roofing.
If the soil is soft, a foundation made of river rock or piles may be required, which adds to the cost. For standard materials, the cost per square meter of foundation can range from Rp800,000 to Rp1,200,000.
Wall and Finishing Work
Walls are typically made of red brick or concrete blocks with plaster and plastering. Finishing includes painting, ceramic tile installation, door frames, and ceilings.
The higher the quality of the materials, the larger the budget required. At this stage, you can also consider commercial fit-out services to create a more professional and comfortable interior.
Electrical and Water Installations
Electrical and plumbing installation costs are also important to consider. Installing water lines, sewer lines, and electrical wiring accounts for approximately 5–10% of the total project cost. Hire professionals to avoid future leaks or short circuits.
Exterior Finishing Work
This includes gardens, parking lots, fences, and access roads. Although often overlooked, exterior areas impact occupant comfort and rental value. Some specialty facility contractors even offer complete packages, including landscaping, to ensure a clean and functional boarding area.
Example of a Rough Calculation of the Cost of Building a 10-Room Boarding House
For example, if you want to build a 10-room boarding house measuring 3x4 meters with a total building area of 120 m² on a 200 m² plot of land, the construction cost per m² is approximately Rp5,000,000. The calculation is as follows:
120 m² x IDR 5,000,000 = IDR 600,000,000
Add architect fees, building permits, and additional facilities such as fences, yards, and water tanks for approximately 15–20% of the total construction costs:
IDR 600,000,000 + 20% = IDR 720,000,000
If you use a full-service contract from a professional boarding house and shophouse contractor, the cost typically includes labor and materials. However, for a boarding house with an en-suite bathroom, air conditioning, and simple furnishings, the total investment can reach Rp900 million to Rp1 billion.
Factors Affecting the Cost of Building a Boarding House
Location
Strategic areas, such as those near campuses or offices, have higher land prices and higher wages. However, room rental rates also increase, thus remaining profitable.
Design and Facilities
An exclusive boarding house with complete amenities clearly requires a larger capital outlay. Conversely, a simple, unfurnished boarding house can be as low as 30%.
Building Materials
Local materials like red brick and teak wood can keep costs down. However, if you want high durability, use materials like lightweight steel and granite tiles.
Labor and Employment Systems
The contract contractor system provides convenience because you don't need to supervise every day, while the daily system is suitable for those who want higher flexibility.
Construction Duration
The longer a project takes, the greater the indirect costs, such as food, electricity, and supervision. Therefore, choosing an efficient contractor significantly impacts the final outcome.
Tips for Saving on Boarding House Building Costs Without Compromising on Quality
Use Modular Design
Modular or symmetrical designs simplify construction because the room patterns are uniform. This saves time and materials.
Select the Contract System
Contractors help reduce unexpected costs because the price is agreed upon upfront. You no longer need to worry about monitoring daily material purchases.
Use Local Materials
Local materials such as pressed brick, quality local paint, or alternative wood can save 10–15% of the total cost without compromising the aesthetics of the building.
Phased Renovation
If capital is limited, you can build a boarding house in two stages. For example, build five rooms first, then add another five rooms once the first unit starts producing.
Use the Services of a Professional Contractor
Experienced contractors not only ensure a strong building but also ensure time and cost efficiency. Many home building and renovation services now offer complete boarding house construction packages, from design and permitting to key handover.
Estimated Construction Time for a 10-Room Boarding House
Construction time depends heavily on the size and complexity of the design. For a simple one-story boarding house, construction can take 4–6 months. For a two-story building, it can take up to 8 months or more.
Using a contractor who has a complete team such as craftsmen, foremen, and project supervisors will speed up the duration without sacrificing quality.
Conversely, if you employ casual labor without professional supervision, the project could be delayed for months. Therefore, it's recommended to hire an office contractor or a boarding house and shophouse contractor experienced in handling commercial projects for efficiency.
The Importance of Architectural and Spatial Planning
Landowners often overlook thorough architectural planning. Yet, room layout, ventilation, and air circulation have a significant impact on occupant comfort.
With the help of a home architect, you can get an efficient design that remains aesthetically pleasing without sacrificing the function of the space.
In fact, architects can help adjust the design according to the direction of the sun, so that the room is not damp and natural light enters optimally.
For shared areas such as a communal kitchen or outdoor bathroom, consider a design that is easy to clean and durable.
Determining Target Market and Interior Design
Boarding house designs should be tailored to the target occupants. If targeting students, create a minimalist concept with a study area.
If it's for workers, provide a lounge area and a small kitchen. Bathroom and kitchen renovation services can help you design practical and efficient shared facilities.
Use neutral colors, good lighting, and adequate ventilation. To enhance the appeal, you can work with a commercial fit-out service that can professionally design the interior.
When Will Capital Be Returned (Break Even Point)
With a boarding house costing around Rp800 million to build and a monthly rental rate of Rp1,000,000 per room, your total monthly income is Rp10 million. In a year, your income reaches Rp120 million. This means your capital can be recovered in approximately 6–7 years, not including increases in rental rates and property values.
If you add amenities like laundry, paid parking, or furniture rental, the potential return on investment can be faster.
Conclusion
Building a boarding house does require significant capital, but the potential profits are well worth it. The cost of building a 10-room boarding house can range from Rp 700 million to Rp 1.2 billion, depending on the design, location, and amenities provided.
With careful planning, efficient design, and choosing a professional contractor, you can build a boarding house that is durable, comfortable, and has a quick return on investment.
Build a Professional Boarding House with Bloka Build
If you're planning to build a boarding house and want high-quality results without the hassle, Bloka Build is ready to help. We offer professional services, from design and budget planning to construction, using a transparent and efficient contracting system.
Contact Bloka Build now for a free consultation and get the best boarding house construction cost estimate according to your needs.
