More people nowadays prefer to live in short-term tenancies because it allows them to be as flexible as possible. This has opened a new opportunity for contractors, commercial property owners and potential property buyers, as the market is growing and becoming a steady industry.
If you’re planning to invest in a motel for sale in Queensland or anywhere in Australia, it’s best to take note of the following common buying mistakes:
Focusing on the Bottom Line
Don’t make sudden decisions and see the big picture. If you found a motel in a good location, don’t buy it yet. Location is only one factor. Check the surroundings and the motel itself. The place might be prone to severe weather conditions, like floods, and make you spend more on repairs in the future. The motel might be too old or made of low quality materials. Even if it has inviting exteriors, you could be spending on remodelling projects before you could lease it to potential tenants.
Focusing on the Selling Price
It’s understandable that you want the lowest possible price, but think of the consequences. The motel may be inexpensive, but you may not get anything from it once you open. Not all low-priced motel sales are sketchy, though, but you have to be careful during transactions since you could end up wasting your investment and lose money along the way.
Focusing on the Wrong Things
Before buying a motel, make sure you’ve understood how its operations work and how it differs from a hotel or any other accommodation. If you focus more on occupancy rates than learning the skills to satisfy your tenants, they might not last and look for another because of your poor service. In addition, your motel might get negative reviews online. The Internet can influence people and if you don’t do well, the whole world will know.
These are only some of the things you should take note of before buying a motel. Don’t make these mistakes, you can make the most of your property investment.
About Judy Holcombe
Judy coaches Tourism and other service professionals, and is always working on scientifically sound observations to enhance service businesses around the world.