If you’re interested in owning and operating your own small motel, you may find yourself looking for motels that are for sale on a fairly regular basis. However, while you might think that this could be a fun project for you and a great way to make some money, purchasing a motel to renovate isn’t as easy as buying residential property and renovating it. With commercial real estate, there are a lot more moving parts and complications to deal with.
So to help ensure that you know what you’re getting yourself into and that you’re prepared for all that this endeavor entails, here are three things to consider before purchasing a motel to renovate.
Stay In The Property For A Few Nights First
Once you’ve found a motel that you feel has won your heart and you’re wanting to go forward with making an offer, before you get too far down this path, Valencia Higuera, a contributor to Chron Small Business, recommends that you first plan to stay on the property for a few days and nights.
During this time, you’ll be able to get a really good feeling for how the property functions and what changes or adjustments you might want to make. This will be a good opportunity for you to see what’s working with how things are now and what should be scrapped immediately. Also, if there are going to be major renovations taking place, you will be able to see how these can be done while also providing your guests with a superior experience now that you’ve been a guest at the property yourself.
Figure Out What Financing You’ll Need
Depending on your current financial situation, the financing that you’ll need to actually purchase a motel will vary.
According to Tricia Tetreault, a contributor to FitSmallBusiness.com, you may be able to get a business loan, a mortgage loan, or a renovation loan in order to finance the purchase of the property and pay for whatever work needs to be done on it. So to ensure that you get the best option for you, make sure you work with a lawyer or financial advisor who has experience with these kinds of deals.
Commit To Staying On Brand
After you’ve successfully purchased your new motel and are ready to begin making the renovations on the property, HotelManagement.net advises that you figure out what you want your brand to be for this property and that you commit to staying on brand throughout the duration of your renovation. This will make your decisions so much easier and will help ensure that your property has a cohesive and consistent image throughout the entire property.
If you’re thinking about purchasing a motel to renovate and run, consider using the tips mentioned above to help you get this process underway.