Tips for first time guest house buyers
The thought of quitting your day job, and opening up a guest house in the beautiful area of Limpopo sounds idyllic, but can be more difficult that it seems. Potential buyers must be aware of certain criteria before buying a property and making a final decision.
Mokopane is the perfect spot for the hospitality industry. Known for both its small town getaway charm, and as a stopover destination for travelers on route to the Kruger National Park, Zimbabwe and Botswana, Mokopane encapsulates what a local holiday is all about. It’s no surprise then that those thinking of moving into the industry would want to do so in Mokopane.
While this paints a romantic picture of bushveld accommodation in Limpopo, buying a guesthouse can be a little more complicated than just buying property and opening it up to tourists. If you’re thinking of opening up a guesthouse and capitalising on the tourist market that stops by, here are a few things to consider.
Buy the right property
According to the Rawson Property Group, potential buyers are advised to check whether or not the property has the correct zoning permissions, whether it is in a prime location to attract passing travellers, and whether the price of the property is worth the future potential earnings. If the price of the property will set the buyers back so far that the future earnings will not cover the bond then it might not be worth it.
Consider cash flow
Hospitality is a seasonal industry, and the summer months are more lucrative than the winter. Potential buyers must be aware of the downtown their guesthouse will experience, prepare financially for it and plan their buying accordingly. Bill Rawson, chair of the Rawson Property Group advises that potential buyers do their homework to see if they can still afford their bond repayments during the slower months.
Understand the lifestyle change
Leaving the rat race can sound extremely appealing, but potential buyers need to be aware what the lifestyle of a guest house owner entails. Owning and managing a guest house can be a 24/7 job, and buyers must be prepared to be committed to the property and business until they can afford to hire a manager and extra staff to help them run it.
