WHAT TO KNOW BEFORE CONVERTING A RENTAL PROPERTY TO A HOTEL
BY DENNIS ISONG
Not everyone buys a property to live in. Some buy strictly for business when they envisage a kind of prospect with such property.
Property conversion is not new and has been in existence for a very long time. People convert the property to anything that suits their interests or commercial needs.
One of these conversions is buying a property that was once residential and converted to a hotel. The hospitality business is one of the most lucrative businesses just a few people can dive into because it’s capital intensive.
Converting a residential property into a hotel is not an activity that should happen on impulse. It should be thought through because there are circumstances it’s being surrounded with, most especially because the property wasn’t initially made for commercial purpose, how much more a hotel.
How can you know you are making the right decision?
1 . Does the community have more learned people?
There’s a big problem with having a property in a community where just a few percentages are learned. It will stifle anything commercial you want to set up there, especially for businesses like hotels, bars, clubs, etc. A larger percentage of people in the community have to understand and find your business good enough for the place. If you are thinking of having a hotel in a community full of religious fanatics, you may end up being frustrated as you are likely to have people unnecessarily harassing your customers.
People go to the hotel for various businesses but you can’t convince a religious fanatic that it’s beyond coming to have sex which isn’t anyone’s business.
You would do yourself a favor by avoiding such a community if your purpose is to convert a property bought into a hotel.
2 . Does the location bustle with activities?
These can be divided into two. It’s either your commercial property is in the heart of the city or close to the heart of the city.
Your business is more likely to thrive if it meets up with either of the two. Location is important in all businesses and not just any kind of location. Having a quiet, serene, and less crowded environment is good but may not be for your business.
I once lived in an area and never knew a hotel existed (which had been there for a long time) until someone mentioned it. I had to check the description out because I never thought a hospitality business would operate there.
So, in essence, not all locations are good for the hospitality business.
3 . What kind of hotel?
This part talks about the size of the property. A standard hotel needs at least 6 plots of land. Does the property fulfill this land size? If not, then, you are building a motel or guest house. You need to consider a lot, such as parking space, bars, pool, etc. if the property you are about to buy does not have enough space, you might want to consider something lesser than a hotel.
4 . Does the area have something similar and thriving?
I would urge that before making a final decision on conversion, you should find out or check if a similar business exists, how acceptable it is, how long has it been there, and how much it has survived. These answers will be a pointer to what you need to know and areas to improve when you build and establish yours.
5 . How motorable is it?
Buying a property and converting it to an area that does not have a good road channel is a disaster. Firstly, it’s important to note that such property should be closer to the main road for easy access. Then, the linking roads should be good enough for cars to drive easily to your investment property. Distance and clumsy roads could be a big turn-off to guests, they would rather find someplace better.
6 . Security
An investment like the hotel is open to all forms of danger. Numerous people are allowed in and you may never really know who is who. Meanwhile, you should prioritize your guests’ safety. To save yourself the stress of having to deal with insecurity, find out about how well fit their security is in the community, then also create your security after establishment.
7 . Ensure commercial activities are worth it
This is important. Ask questions to know if any businesses are to thrive there. Some places are so dry that it is difficult for any business owner to make money from their businesses. If the property you want to convert is located in such a community, do yourself a favor by not bothering to spend so much to put that kind of investment there.
Property conversion is a great idea only if it fulfills the requirements mentioned above.
Dennis Isong helps individuals invest right in Real estate. For questions on this article or enquiring about Real estate. Follow him on Youtube https://www.youtube.com/landpropertyng , Email Dennis@Landproperty.ng or Whatsapp/Call +2348164741041
