Buying a poperty to set up an Air B and B

Themag

Looking to buy a property to set up an Air B and B business in.
Is this possible?
I notice the regulations are not as strict as Claire ireland..
So What are the regulations for Air B and B.
The house is old and that's why I want to do it on the cheap at the start, my aim is then in year two to improve the property with the money I earn and so on each year until and very high standard failte ireland B and B.
Discuss

BabySlam

Themag wrote: »

Looking to buy a property to set up an Air B and B business in.
Is this possible?
I notice the regulations are not as strict as Claire ireland..
So What are the regulations for Air B and B.
The house is old and that's why I want to do it on the cheap at the start, my aim is then in year two to improve the property with the money I earn and so on each year until and very high standard failte ireland B and B.
Discuss

you need to do or commission a feasibility study.

Themag

commission a study on what? explain more?
Does anyone else have any experience in this situation

Michael D Not Higgins

Themag wrote: »

commission a study on what? explain more?
Does anyone else have any experience in this situation

On whether your plan is feasible, i.e. a feasibility study.

This would require an in depth look involving many aspects, including costs, taxes, risks of non-occupancy, etc. We don't know what your plan entails so it's hard to give you advice on your very limited information.

Themag

ok so looking to buy a old property with 5 bedrooms. with repairs up 35,000 i will hoe to turn it into a 7 bedroom property with 5 ensuite. total costs 1350,000 so say max 150,000.
i am already registered as a sole trader so buying taxes is nothing new.
at a low end scale i am calculating E35 per room
so say 35*7rooms = 245 per night *7 = 1,715 per week
i am saying 26weeks cause it will be seasonal so 26*1715= 44,590
occupancy rate at 40% *44590= 17,836
minus expenses including heating, causal wage, insurance, laundry and commision 8,500
final sum of 9.336
i feel this is a worst case scenario and been pessimistic.

mariaalice

Depends where it is, you need to be near both tourist areas and good public transport, I have used a few airbnb's and first off the standard tend to be very high as high as a good hotel, you need to keep the place spotless and people prefer a whole apartment or studio to themselves. What you proposing sounds more like a hostel think about it if all five room were full you would 10 people using the kitchen in the morning that's generally not the experience people are looking for, you will be reviewed online.

Not a bad idea but you need to think about it more.

joeguevara

Have you factored in tax?

beauf

I don't think the OP is asking about the financial viability of it.

But the legal regulations such accommodation (and business) has to meet. Its like trying to run hostel, or BB or hotel, with declaring it as such.

dori_dormer

I was in one abroad recently. The owner had converted a 2 bed apartment into 2 air b&b studios. Basically you went in the front door to a corridor with 2 rooms off it.
Each had double bed, kitchenette, bathroom and washer/ dryer. Very high quality place. You could probably get away with shared laundry facilities.

If you are only essentially renting rooms, with shared facilities, you'll get much less rent and less uptake and likely younger clientele. Or are you hoping you'll rent the entire place to one large group? That will likely lead to stags, hens, parties, damages etc

Parking is also an issue, as is wifi and tv etc. personally I think the set up above is great as you could rent both rooms for larger family or friends travelling

endacl

So.....

Not an Air B&B? Just a B&B, which will start off fairly rough and ready, but which you hope will generate enough income to turn into a B&B that meets Bord Failte's standards?

Bored_lad

I think you need to decide what your actually looking to set up. Is it going to be some sort of b&b or hostel or will you be renting the whole place on Airbnb. As far as I know whole apartments and houses rent better than rooms. The standard of the place will also have to be good otherwise you won't get many people looking to rent it. So you will most likely have to do some work on it before putting it up on airbnb and make sure you get good pictures or get someone to take the pictures for you as they make a huge difference.

Themag

mariaalice wrote: »

Depends where it is, you need to be near both tourist areas and good public transport, I have used a few airbnb's and first off the standard tend to be very high as high as a good hotel, you need to keep the place spotless and people prefer a whole apartment or studio to themselves. What you proposing sounds more like a hostel think about it if all five room were full you would 10 people using the kitchen in the morning that's generally not the experience people are looking for, you will be reviewed online.

Not a bad idea but you need to think about it more.

Ya it's a seaside resort and has a lot of passing traffic. The kitchen been is a issue I have thought about alright but the dining room would be big enough to hold 5 tables but it would be tight alright...

zac8

For 150k you would get a better return on a 1 bed apartment in the center of Dublin without all of that effort. It doesn't make any sense.

Themag

dori_dormer wrote: »

I was in one abroad recently. The owner had converted a 2 bed apartment into 2 air b&b studios. Basically you went in the front door to a corridor with 2 rooms off it.
Each had double bed, kitchenette, bathroom and washer/ dryer. Very high quality place. You could probably get away with shared laundry facilities.

If you are only essentially renting rooms, with shared facilities, you'll get much less rent and less uptake and likely younger clientele. Or are you hoping you'll rent the entire place to one large group? That will likely lead to stags, hens, parties, damages etc

Parking is also an issue, as is wifi and tv etc. personally I think the set up above is great as you could rent both rooms for larger family or friends travelling

That's sounds like a look of work and I am looking to keep costs down at the start. Parking wifi TV are not a issues and will be provided.

I would be advertise private rooms and also would look to rent it as a entire property who ever books gets what they want... In this area stags and hens are not really a issue.. The property is on the coast so targeting tourist travelling the wild Atlantic way...

Themag

zac8 wrote: »

For 150k you would get a better return on a 1 bed apartment in the center of Dublin without all of that effort. It doesn't make any sense.

My figures are worst case would be really hoping to make up to 20,000

athtrasna

Themag wrote: »

My figures are worst case would be really hoping to make up to 20,000

After tax? That's ambitious

Themag

athtrasna wrote: »

After tax? That's ambitious

To be honest don't want to make anything on it for the first couple of years.. Cause I will reinvest the money straight back into the property

Themag

Also do you know if it's possible to list the property as a entire house and also a private rooms.. So say someone books up the whole place for a wkd then no one can book a room vice a versa.

Mrs OBumble

OP, you need to investigate with the local council what planning permission is required to operate a BnB. We cannot tell you what the local rules or status of your target property is.

Do not only target AirBnB. You are starting a BnB. AirBnB is one source of customers, but there are others, and you should use as many as you can to reduce the risks if one of them develops a problem and stops workign for you.

You will need to be honest about what you are offering, and price accordingly (which you have done). People don't necessarily expect high quality on AirBnB, they expect value for money - which sometimes means less facilities for a lower price.

However you will get some comments as if you were charging a high price, so you will need to get good at writing answers like

"I'm sorry you were disappointed that there was not an en-suite in your room , and found the breakfast staff rude. I have spoken to the breakfast staff and trained them in better ways to handle situations like yours. My apologies for your difficulty on the day. Regarding the lack of an en-suite, this was mentioned in our listing and shown in our photographs at the time you made your booking, and is reflected in the prices we charge. I hope the rest of your holiday was enjoyable."

Factual, not defensive, apologise for their perception of your mistakes, but don't be a walk-over or drop your staff in the s*** either.

Michael D Not Higgins

Themag wrote: »

Also do you know if it's possible to list the property as a entire house and also a private rooms.. So say someone books up the whole place for a wkd then no one can book a room vice a versa.

On AirBnB, a booking is only an email to the advertiser. They have to accept the booking for it to be processed. You could just respond saying the dates aren't available.

I can't comment on your figures because I don't know what the demand is like, what the going rate is, etc. However, I do think you're being very generous with your figures. I'm not even sure you've considered tax in your given numbers?

P. Breathnach

You can sell almost anything if the price is right. My interpretation of your idea is that initially you would be operating closer to hostel standards than to those of a boutique hotel, and would need to price accordingly. My guess is that prior to upgrading, you might have to settle for €20/25 per room per night.

The number (and quality) of bathrooms would be an issue.

You would also need to explore fire safety and other legal requirements.

endacl

Themag wrote: »

My figures are worst case would be really hoping to make up to 20,000

Worst case scenario is nobody stays, and you lose the lot.

beauf

endacl wrote: »

Worst case scenario is nobody stays, and you lose the lot.

Maybe no mortgage?

Themag

endacl wrote: »

Worst case scenario is nobody stays, and you lose the lot.

Worst case I rent the property out for 5000 a year. Mortgage secured and also have good capital behide me.
This is a investment that I am taken slowly. Not risking all my hard earned cash..

BreadnBuddha

How would your figures and layout look if you used 1 ensuite room 'rent free' for a live in caretaker/host in exchange. Semi retired/retired or even a mature student as a host to provide a welcome, prepare a breakfast setting and maintain a pleasant environment day to day for guests. Not a live in skivy, just someone to provide a 'homely' feel to the place in the evenings. Work along the lines of 5 evenings per week availability, with two days 'off'.

JohnBee

Has the OP checked the demand in the area? Are there many BnBs in the area already? Is it already hard to find accommodation for tourists in the area? Even if you are pricing it low, remember that most guests will still expect a property to be spotless clean and in good condition, even if it is not high end.

Zascar

Have you factored in all the work that would be involved in that? Having to be there to let them in and out, maintaining the place with that many people coming and going would be a lot of work. As already said, a Dublin city center apartment would be better.

Themag

BreadnBuddha wrote: »

How would your figures and layout look if you used 1 ensuite room 'rent free' for a live in caretaker/host in exchange. Semi retired/retired or even a mature student as a host to provide a welcome, prepare a breakfast setting and maintain a pleasant environment day to day for guests. Not a live in skivy, just someone to provide a 'homely' feel to the place in the evenings. Work along the lines of 5 evenings per week availability, with two days 'off'.

Something I have thought of and I think it's a very good idea

Themag

There is a demand for this alright as there is only one B and B in the town and it's not online and in bad condition... I believe I will be well able to keep it clean and tidy as I run a pub and am well used to dealing with the public and know what they want..
I am just out of a meeting with my fire consultant and he says I will need a fire very to set up a B and B but is unsure about air B and B.
So do you need a fire cert for air B and B?
As fair as I know you don't?

Michael D Not Higgins

Themag wrote: »

There is a demand for this alright as there is only one B and B in the town and it's not online and in bad condition... I believe I will be well able to keep it clean and tidy as I run a pub and am well used to dealing with the public and know what they want..
I am just out of a meeting with my fire consultant and he says I will need a fire very to set up a B and B but is unsure about air B and B.
So do you need a fire cert for air B and B?
As fair as I know you don't?

Treat it like a B&B. You are setting up a commercial enterprise letting out to tourists, not an occasional guest in your PPR.

antoinolachtnai

This link may be useful re planning.

http://kildare.ie/CountyCouncil/FAQs/ExemptedDevelopmentFAQs/#faq7

You really need to scope this out and work out the viability. Be sure you understand the tax side.