B&B ventures demand good planning

With the preference for boutique and customised accommodation growing among tourists in South Africa and 2010 now looming large, there are many investors seeking properties they can convert into Bed & Breakfast (B&B) guesthouses. Investors need to know that owning a B&B is not as easy as it seems.

However, says Dr Piet Botha, chairman of the Nationlink estate agency group, it is important not to romanticise the idea of owning a B&B.

"Lovely as the beachfront or bushveld location may be, and fascinating as you may find your guests, setting up and running a B&B is first and foremost a business venture, in which you are investing your time and money."

To protect that investment, he says, the first thing needed is good insight into the local property market because the position and type of property to be bought will ultimately determine the success of the B&B

"For example, an in-town property will need to be close to main access routes, shops, restaurants and tourist attractions without being noisy. At the sea or in the mountains, the visual aesthetic of the location will also be very important. And if you opt for a country location far from civilisation, you will probably have to spend more on marketing to get your B&B known."

Botha notes that, depending on how many guests the B&B will accommodate at any one time, investors will need a home with multiple bedrooms, preferably with en-suite bathrooms so that guests have sufficient privacy.

"You will also need space to prepare and serve breakfast as well as large living areas and ample parking space. Your paying guests will also expect the exterior of the property to be well kept and the fixtures and features of the home to be good quality.

"And while purchasing a home and converting it into a B&B can be an exciting way to create a fresh accommodation offering, this is quite likely to involve major renovations and thus expense. It is, therefore, often easier to purchase an existing B&B which already has the necessary infrastructure, staff and hopefully quite a few regular guests."

Consequently, Botha says, it is vital to consult an experienced local estate agent when looking for a B&B. "He or she will know, especially in a small town or country area, if any of the established B&Bs are for sale, and failing at that, the most suitable location and property in which to set up a new one.

"As there are numerous B&B's throughout the country, it is important that yours stands out from the competition, and you should seek expert help to select a property with the space and privacy, up market finishes, quiet surroundings and beautiful views that will make it memorable for your guests and an increasingly successful enterprise."

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Readers' Comments
Re your article on B&Bs. The one thing that that isn't mentioned is the neighbours! I had a B&B open next to me 2 years ago against numerous objections from the neighbours! We live in a quiet up market neighborhood but guests don't give a damn. They treat it as a hotel, using the entertaining areas and pool at all times of the day and night. I have had police round several times, often after midnight (during the working week!) because they were still braaiing and drinking. I have had verbal abuse and the threat of physical abuse from guests (local and international) when I have asked them to keep the noise down. I eventually took the owner to court, and had to get an interdict to get them to keep the noise down, at considerable time, expense and inconvenience to me and my family.

I am totally against B&Bs springing up in residential neighborhoods and it should not be encouraged!!
David Norris

In reply to b&b article,

firstly the stand must be rezoned to a catogory to operate a b&b or guesthouse which is a costly affair.

If it is in a residential area only,the municipality would be reluctant to approve it because it is a business.

Anyone opening a b&b without rezoning the stand,is doing so against municipality by laws.
Gerhard Janse van Vuuren, Surveyor/Cad coordinator

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