10
Essentials to Know When Buying an Inn
The Innkeeping industry is a wonderful place for a lot of people, but it’s important to know what you’re doing. The most expensive mistakes happen when people buy the wrong kind of inn for their needs. So, let’s look at 10 essentials things to know when buying an inn.
1. Buy where you want to live.
Your inn will be your home. It can be the greatest business in the world, but if you can’t answer “yes” to the question, “Do I want to live here?” then don’t buy it!
2. Know what you are looking for.
Are you looking for a lifestyle business that you can manage on your own, make some extra income, have some tax advantages, and can close whenever you want? If so you’re buying a house. But if you want an inn that will pay the operating expenses, pay the mortgage, and still provide you with an income, you are buying a financially viable business and commercial property. There’s a big difference.
3. Know the value of owner’s quarters.
Spacious owner’s quarters that enhance your lifestyle as an innkeeper can add value and increase the price of an inn. But owner’s quarters don’t add to cash flow. So, two inns with the same revenues can be priced differently and be justified based on the owner’s quarters. Also be clear early on as to your space requirements for you and your partner/spouse/family.
By The B&B Team , Peter Scherman and Rick Wolf