What running costs should I review before buying a day spa?

A day spa carries overhead that a simple retail shop does not. Water, heat and towels run all day, and rooms sit empty when guests do not book. Before you make an offer, ask for the monthly cost lines behind the profit statement so you can see what it truly takes to keep the doors open. Your accountant can then help you decide which items a new owner would carry differently.

Premises costs

Start with rent and the extra charges that sit on top of it, such as common-area costs, any taxes the lease passes on and signage. The lease sets these, so have your lawyer or accountant confirm them. Ask for the lease and any amendments, and note when it ends and how renewal works. A spa is built around its rooms, so a short lease changes the picture for a buyer.

Laundry, linen and backbar products

Laundry may be a standing contract with a linen service, or an in-house machine with its own upkeep. Ask which it is and how charges rise on busy months. Then look at backbar products, the items used in treatments rather than sold at the front desk. Compare ordering patterns with the treatment menu. For a similar exercise in another trade, see running costs to review before buying a hair salon.

Utilities, servicing and insurance

Steam rooms, saunas and hydrotherapy tubs use a lot of water and energy, so ask to see several seasons of bills. Add servicing for treatment beds, pumps and any specialty equipment, plus the insurance policies and what they cover.

Software and card processing

• Booking software subscription and any per-booking charges
• Card processing statements and the terms of the contract
• Gift certificate and membership tools tied to the booking system
• Marketing platforms and listing fees paid every month