The last year has been quite challenging, considering the number of lost jobs and businesses closing their doors after years of trading. It has been an increasingly difficult time for homeowners, especially if you have investment properties that are now empty due to tenants defaulting on rental payments and moving out. It has caused catastrophes all over the world, both for the working class as well as entrepreneurs. One question many ask is how to utilize an empty property effectively and regain your income from it. Large houses have become stagnant on the market, and most individuals can neither afford to buy them nor afford to rent them. Well, there are many ways in which landlords can repurpose their property into a steady monthly income once again. One of the sectors affected the worst during the Covid 19 pandemic is the travel and accommodation industries. Guesthouses and accommodation facilities have closed down in 2020 more than ever before. As the economy and people worldwide start to recover, a shortage of accommodation for business and leisure purposes will be in high demand. So why not turn an empty property into a profitable guesthouse? Let’s look at how to go about doing this.
1. Start With Maintenance
For any property that has been empty for a few months to years, it will definitely be necessary to give it a good clean inside and out. Get the help of a qualified contractor and start testing and repairing everything on the property. Ensure your plumbing is working 100% and that there are no leaks that could damage flooring or furniture. If you see that your plumbing has deteriorated in any way, consider hiring a professional plumbing company to come in and test your pipes as well as plumbing. They can help with repairing blocked drains, leaking pipes, and even toilet tap repairs. Guests staying in your guest house absolutely don’t want to be welcomed by odors from blocked drains and leaking pipes in their bathroom. This is essential maintenance as pipes leaking for a long time can cause structural damage as well. Well maintained properties also tend to increase in value when you consider selling them in the future.
2. Furnish the Property
A noticeable difference between a standard guest house with minimal bookings and a guest house that is always booked in full is most definitely the property’s aesthetics. When guests pay any amount for something such as accommodation, they want to be pleased with the environment they’re staying in. Any complaints about old furniture and stained bedding could mean that your guesthouse will remain empty for the foreseeable future. It is also not ideal as you’ll start losing money paying wages, electricity, and so on, without having any guests swiping their credit cards at your reception. If you’re not the most stylish person, you can also get some help from an interior decorator, who can transform a property into a masterpiece within a few hours. Interior decorators know what colors people find attractive and exclusive looking and which colors will put them off from their experience. They can also manipulate different lining and colors to make specific rooms look warm and cozy and others cool and spacious. Furnishing your guest house is one aspect that sets you apart from the rest.
3. Hire Staff
Another aspect capable of ensuring your guest house is fully booked every month is knowledgeable staff. Staff plays a crucial role in the experience that every customer entering your guest house has at the end of their stay. Hiring staff who has diplomas and expertise within the hospitality sector could also be advantageous for your new guest house. An experienced team will always ensure that a guesthouse is appropriately managed and that guests are always as comfortable as they can be. With a qualification in the hospitality sector, staff could also prepare and serve breakfast every morning, stay on track with bookings and practice proper stock control. They should also ensure that rooms are always clean and that no customer complaints stay unresolved during their stay. You will also need cleaners assisting your manager with keeping your property in a clean and comfortable state.
4. Estimate Pricing
So to calculate what your pricing should be, first determine more or less what your competitors charge for a similar stay. Also, try to observe why guests come to your area. If your property is nearby a busy city, they’re most likely visiting for business purposes. If your property is close to the beach, the odds are they’re on holiday and need some relaxation. After you know why most individuals visit your area, calculate the operating cost of your guest house and determine your price accordingly. If your operating costs are $7000, you know you need to charge about $250 per night for a double room, and you also need to be booked 28 times per month. A guest house with four rooms that can sleep two people can quickly be booked up to 80 times per month. If you can manage this, you’ll never have to lease out your property again and easily make a turnover of $20000 per month. To get your guest house booked for at least 80 nights per month. Partner up with one of the big three travel search engine companies. People know their names and trust their accommodation deals. These companies take the hassle of marketing entirely out of the equation.
It’s not one of the most challenging options. It is an expensive option, though. But then again, if you do it well, you will make your money back in no time. If your guests are happy with your price, food, service, and looks, they’ll certainly consider you the next time they need a break or have to travel for business purposes. So why wait and why keep on losing money on empty properties. Create a guest house of your own and blow away guests with your unforgettable hospitality experience.
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