Anyone run a B and B?

[truck71]

Interested in people's experience in running a b and b, what are the key elements to success, what are the pitfalls, what's the appetite from lenders to give a mortgage on this type of business, do you go vat registered or not etc?
Any comments appreciated.

[craigjm]

Its extreme hard work and long hours and you have to be in a real key position to get really good occupancy rates. Where were you thinking of?

[truck71]

Thinking South West, rural and buying an established business.

[daemon]

truck71 said:

Thinking South West, rural and buying an established business.

Usual parameters apply, i would have thought - why are they selling, how long have they had it, then into their occupancy rate, profit, etc.

I'd have thought its a vocation / lifestyle choice moreso than a job. How would you feel about being tied to it 7 days a week with no respite?

Have you any experience in hospitality or do you just think it would be nice to do?

Edited by daemon on Sunday 21st February 09:54

[craigjm]

daemon said:

I'd have thought its a vocation / lifestyle choice moreso than a job. How would you feel about being tied to it 7 days a week with no respite?

Exactly this. Early starts cooking breakfast every day and then check outs followed by lots of cleaning and washing etc as room changes and then the checking in starts and people can arrive at all hours.

You then have the trip advisor issue. It's not the same as a visitors book these days the whole world sees it and lots of people have really unreasonable expectations reagardless of what you are charging.

There will be ups and downs in occupancy over the year so have a plan to cover that

Will you need staff?

What will it be about your place that makes it the place to stay locally and how will you encourage repeat custom?

Will you be living in? If not what is the plan for overnight cover?

If it's near a big city of anywhere find out how you can get into corporate ordering systems like Egencia

[russ_a]

Go for self catering units!

[alfie2244]

echo all of the above.

It is a way of life - you are inviting people into your home - be prepared to meet all sorts of (nice and not so nice) people - being nice to everybody is lot harder work than most would think - especially now you have the "trip advisor" you will be amazed what "foibles" exist in the peoples of the world.

The old adage - you can please all of the people etc etc really does apply.

Borrowing on P & L accounts may not be so easy either.......Payments in cash have reduced considerably over the last few years but there "may" need to be some "reading between the lines" if you are buying a live in, owner operated business.

V.A.T. would be dependent on No of rooms / occupancy and could effect your competitiveness against other local b & b's as well as budget hotels

IMO I would try to find a niche' - i.e. contractors, dog friendly etc and avoid direct competition, if you can, with budget hotels.

lastly location is the absolute key.

I owned a 5 bed BnB -bought from owners that had run it for 20+ years previous originally to convert to bedsits - daughter ran for 3 years - Ex and I then ran for 5 years - had live in manager for 3 years - now whole property let out to local organisation with no hassle.

hope this helps...good luck.

where in the SW btw?

Edited by alfie2244 on Sunday 21st February 10:26

[truck71]

Thanks for the replies.

My experience in hospitality ended 25 years ago when I last worked in a pub. I've since had a career in logistics predominantly in the retail sector which has required customer service skills. Currently MD for a commercial vehicle retail group which again demands customer service satisfaction.
I see this role as potentially being my last job and want to run a business of my own, possibly lifestyle, hence the b and b option.
Thoughts are the investment is largely in property which reduces risk and gives scope for flair and creativity to bring a business to life.
I'm thinking South West as property is affordable, weather good (for UK) and popular with tourists. Scenery is also pleasant and would lend itself to outdoor activities which are my bag.
My strengths would be business management and administration, socially confident with a hands on style. Weaknesses would be industry naivety and all the detail that would cover.
Like the idea of self catering let's but may be outside of my budget in the South. Would consider the North but the weather would become a drag.

[alfie2244]

quick search reveals much..this any good for example? free holiday will do

http://uk.businessesforsale.com/uk/highly-profitab...

Stunning Farmhouse B&B with grounds in excess of 3 acres, set in idyllic village location close to both Cornish coasts and numerous tourist attractions. Ranked 1st out of 43 B&Bs by Trip Advisor, this is an ideal business opportunity to purchase the best B&B in Bodmin.


The B&B has 5 letting rooms

Full planning has been submitted to convert outbuildings to 6 self-catering holiday lets.

[truck71]

alfie2244 said:

quick search reveals much..this any good for example? free holiday will do

http://uk.businessesforsale.com/uk/highly-profitab...

Stunning Farmhouse B&B with grounds in excess of 3 acres, set in idyllic village location close to both Cornish coasts and numerous tourist attractions. Ranked 1st out of 43 B&Bs by Trip Advisor, this is an ideal business opportunity to purchase the best B&B in Bodmin.


The B&B has 5 letting rooms

Full planning has been submitted to convert outbuildings to 6 self-catering holiday lets.

Indeed, it's on my list! Slightly beyond what I would want to pay (£600k would be more in line with my current property value but am looking at up to £750k) hence understanding lender appetite for this type of venture.

This is exactly the kind of thing I've got in mind.

[All that jazz]

daemon said:

truck71 said:

Thinking South West, rural and buying an established business.

Usual parameters apply, i would have thought - why are they selling?

^ This, this and this. They are very unlikely to be selling if it's making good money.

[alfie2244]

All that jazz said:

daemon said:

truck71 said:

Thinking South West, rural and buying an established business.

Usual parameters apply, i would have thought - why are they selling?

^ This, this and this. They are very unlikely to be selling if it's making good money.

Possibly so but I bought a BnB that had been operating for 20+ yrs - wife had cancer... Stuff like this and divorce etc does happen.

But in the case I gave I would wonder why when it appears to have good existing business plus development potential.... BnB is a lifestyle and not everyone's cup of tea though (hence why I got a manager in and my Ex is my Ex [in part])

Edited by alfie2244 on Sunday 21st February 16:30

[evoivboy]

The southwest will be very seasonal, especially oct/nov, feb/march
will you survive with 10/20% occupency
it is very demanding hours, 7am to poss midnight 7 days a week
if you want time off you will either have to close or pay some else(if you can find some you trust) to do it so rejused profit
can you cook 8/10/12 breakfasts at once if they come down together?,
this is the last thing you're guests will experiance, so it must be perfect,
quality is key, good bacon, not watery
good quality sausages,
free range eggs( can you cook perfect scrambled, poached, fried)
You really need a catering "brain" to get this right or you're fked
and i have'nt started yet on the housekeeping side!
attention to detail!

If i were you i would get a job for a few months on a small hotel/guest house/BaB to get some valuable experiance

Good luck!

[truck71]

Cooking I'm fine with, totally agree on quality ingredients. It's the housekeeping I'm not so keen on..

Plenty to ponder.

[21TonyK]

Throughout the 70's,80's and 90's my family owned numerous B&B's and hotels in South Devon, Torbay to be precise.

Having grown up in the industry I was offered the opportunity to take over. I declined!

It's a very demanding game, long hours and PITA people, especially if you are licensed and have a bar although this could be staffed if you can trust them

Get it right and you can make decent money. My parents did very well out of it back then. Not so sure now.

As others have said not so much cash as the old days which means you have to be pretty straight if looking at VAT registration. Again this depends on the size of business but if you are looking circa £600K property I suspect you would have to register.

For me, that would be the killer. Just because you are VAT registered doesn't mean you can charge 20% more than your neighbour who isn't. You just lose half your earnings to HMRC.

[condor]

Have you been watching the channel 4 series '4 in a bed'? also on the channel More4.

It's a programme of competing B&B owners to see who is best value for money. That will give you a good idea of what is expected.

I've stayed in plenty of B&Bs over the years and I would recommend that the owners spend a night in each of their rooms they're charging for.

[truck71]

condor said:

Have you been watching the channel 4 series '4 in a bed'? also on the channel More4.

It's a programme of competing B&B owners to see who is best value for money. That will give you a good idea of what is expected.

I've stayed in plenty of B&Bs over the years and I would recommend that the owners spend a night in each of their rooms they're charging for.

Yes, very entertaining. I agree some of them do seem to miss obvious things and get very defensive when criticised. Likewise I've stayed in a lot of places and it gives a good insight to what good looks like. Noise being my biggest pet hate!

[truck71]

I've found a couple of places I'm interested which I'll be visiting in a few weeks. How do I check for external risks and influences- plans for a nearby wind farm/recycling plant/bypass etc? What about other environmental concerns, I've noticed some places have rights of way passing through- anything else I need to be wary of? Flooding, existing issues (don't want somewhere next to a kennels or such like).

Thanks in advance.

[alfie2244]

truck71 said:

I've found a couple of places I'm interested which I'll be visiting in a few weeks. How do I check for external risks and influences- plans for a nearby wind farm/recycling plant/bypass etc? What about other environmental concerns, I've noticed some places have rights of way passing through- anything else I need to be wary of? Flooding, existing issues (don't want somewhere next to a kennels or such like).

Thanks in advance.

Have a look in the local council planning website & goggle the address perhaps?

[dmsims]

alfie2244 said:

the best B&B in Bodmin.

Not hard as Bodmin is a dump