Guide to Buying and Operating a Guest House in South Africa (Part 1)

1. Why? Is this a long-held dream? It's more demanding and a little bit more complicated than you might think. But it is a nice dream...

Because you want to "downshift", get a "lifestyle" that will be relatively stress-free? That you'll have plenty of free time to work on your golf swing? That you'll make enough money to live on? And it must be a pretty simple business to run, right? Well, maybe.

Side Bar

Brian says..."Now I know you're not interested in our life stories but this is based on our experience, so a bit of "I-ing" and "We-ing" is going to be difficult to avoid. I'll try and keep it to a minimum though. I'll do it in a Side Bar - like this. We knew nothing when we started. We had to learn by trial and error and, as you'll see, we've paid some school fees."

Let's talk about the "relatively stress-free" bit...

Unless it's a "walk-in", you gear up for every guest's arrival. Is the room perfect? Has the geyser been turned on? Does your intended menu (dinner and breakfast) cater for any dietary preferences they might have expressed? You've got a picture - an expectation. And there's just a little bit of adrenalin.

They have expectations too. And their expectations have got to be met. Exceeded even. If that doesn't seem like much, try it. If you're doing well, this is happening 3, 4 or 5 times a day. And in peak seasons that can be 60 days on the trot. You haven't got time for golf swings.

Did I forget to mention that after you've met them and shown them to their room, you're going to be entertaining them in the bar pre-dinner, preparing and serving dinner, serving the wine, entertaining them again with after-dinner liqueurs? And we haven't done the breakfast yet. Or taken the cash. Or done the farewells. Or thought about whether or not you have to go shopping today for fresh supplies.

Now let's talk about the "make enough money to live on" bit...

Yes, you can make enough. But you're not going to sit back, watch it roll in and then spend it. Surpluses are ploughed back into the property. You're developing an asset that you're planning to sell for a fortune down the track. And you're never short of ideas on how things could improve.

And somehow that top-of-the-range "Big Bertha" you've had your eye on always seems to be bottom of the priority list.

So there's stress. It's more work than you thought. And there are times when you wonder if you're "burning out". And that single-figure handicap? Well, it might take a few more years.

Just thought I'd mention these things up-front. As a little "reality check"...

On the other hand...

There are a lot of positives. First and foremost, the guests. If you are a social animal, this is a very rewarding business to be in. You have to enjoy your guests.

And they're easy to enjoy. I could, and one of these days I will, write a book about some of the guests we've had. It's an astonishing diversity of fascinating people. And as you get older, and your world gets smaller, it's exciting to have a business that brings a stream of people to your front door.

Bad experiences? Rare. We can count on the fingers of one hand the number of guests that we really haven't enjoyed and won't welcome back.

Another plus. Feedback is immediate. If they've loved it, they'll tell you. Effusively. You get a big bang out of knowing that you've created an experience for your guests that they're not going to forget in a hurry.

And the cherry on top? Notwithstanding the fact that you're going to be a lot busier than you might think, your time is your own. If you've got a gap you can take it. And in the slow season, you've got gaps. What difference does it make to you if it's a Sunday or a Tuesday? If you feel like taking a picnic and a fly rod into the mountains - well, that's what "down-shifting" and "lifestyle" are all about!

2. "Operating Model" - Options - How "social" an animal are you?

2.1 Self-Catering

Let me deliver a short, grouchy blast on the subject of self-catering. If you go for a self-catering operating model, you're buying into:

* people who want more freedom than they would normally have in a B & B room or a hotel room and somehow feel they have the right to be careless with your stuff and even, occasionally, destructive;

* the cheaper end of the market;

* unruly kids;

* indulgent parents;

* fewer opportunities to interact with your guests; and

* theft issues.

These aren't good things. Why else do you think self-catering places are normally so sparsely furnished with the cheap and readily replaceable?

2.2 Bed & Breakfast

Depending on your location, your operating model can vary. If you've decided to set up, or buy, in a city, or a hot tourist destination that's bursting at the seams with good restaurants and vibey bars, you can simplify your operating model. Straight B & B. Although this reduces opportunities for interaction, it takes a lot of load off. And it means you're concentrating on the most profitable aspect of the business.

2.3 Full Service Guest House

On the other hand, maybe you like the idea of running your own restaurant and bar, and creating opportunities to interact more intensively with your guests. It also means your guests are going to interact more intensively with each other. And you'd be surprised how many friendships are created in your restaurant and bar. It is a lot more work though.

But if you've got your heart set on some remote, rural location, you've got no option. Your guests have got to be fed and watered. And if there's nowhere else to go, you're going to have to do it.

Even if there are other places to go, a lot of guests will tell you, that having a bar and restaurant, on-site, is a big draw.

Side Bar

Janette says..."Just a note on the importance of the "interaction" stuff. We're sometimes asked why we don't have TVs in the rooms. And it's simple. We don't want the guests closeted in their rooms, sometimes they need a gentle and graceful "poke". We want to encourage and facilitate interaction in every way that we can. Because they do enjoy it. And yes, it's good for bar profits, but it's even better for ambience".

Still Keen? Good. "Just Do It".

DID YOU LIKE THIS? WELL CLICK HERE TO READ PART 2!

© Halls Country House | 4-star Accommodation in the Drakensberg, South Africa