What Are Motels?
Motels differentiate from hotels because they are typically designed with specific travelers in mind. Usually, motels consisting of a series of connected rooms with direct access to the parking lot and are often just one story. Generally, motels are also simpler than hotels. For instance, they mainly offer accommodation services and perhaps breakfast, but not much else.
Motels are also known for their unique locations. Travelers looking to break up a long drive might stay in a motel, even if it’s in the middle of nowhere. However, the location of a motel isn’t inconsequential either. Being close to restaurants, nearby attractions, and cities can make them more desirable to a wider customer base.
When investing in motels for sale, it’s important to do your homework ahead of time. Before making your final decision on a motel sale, you need to take these steps:
Steps to Take Before Purchasing a Motel
Stay a Night: Any building can appear attractive and nice upon a simple walk-through. However, you’ll only get the real experience if you actually stay for a night in the motels for sale near you. This will help you narrow down your search and give you a clearer understanding of what the building is like and the current state of services.
Reputation Check: Take a few minutes to check the reputation of the motels you’re considering buying. Websites like TripAdvisor specialize in reviewing accommodations. You can also read through reviews and commentaries made through social media sites. Both critical and positive comments will provide an excellent window into how customers perceive the motel.
Inspection: An inspection is an essential task before purchasing any property. Also, you need to ensure that you hire an experienced inspector to provide you with an accurate, professional and subjective report based on the motel’s physical qualities, installations and amenities. Besides, this inspection will not just point out potential problems, but it will also help you negotiate a fair price.
You need to ensure that when you or a professional inspects the property, that areas like mold growth, the HVAC system, and the sprinkler system, among others, are closely reviewed.
Financials and Potential: Whether you’re seeking small motels for sale, bank owned motels for sale or large motels, the bottom line is that the building’s past success is one of the best predictors of its future potential. So, make sure that you request financial records, these will show you how well the property’s doing.
Although it is possible to turn around a poorly run motel with renovations and improved management, it does require careful planning. Therefore, you will need to list the costs of renovations and property improvements and weigh them against future earnings. Remember, changing mattresses, bedding, and carpeting can quickly add up. Cosmetic improvements such as a fresh coat of paint are more affordable but do make a big difference in appearance.
A wisely purchased motel can provide you with a steady income and even offer great returns should you choose to sell in the future.