Before you Buy a Motel, Check the Reasons it’s Being Sold For
To become the owner of a motel, the best thing that can be done is to buy an existing, operating one.With so many motels on the market right now, it is always better to choose one that is quite near your residence, and which is economically priced.
While buying existing buildings, it is important to first find out why the previous owner is selling it.If it is merely because the owner is retiring, has no one to look after it or is venturing into a new business, then it’s okay to consider investing in it.Do some research before buying the hotel or motel if it has a bad reputation, has bad business or is located in a bad locality.
Make sure you go through the franchise disclosure and agreement of the motel owner if it is a franchise.Verify if the agreement will be transferred to you or if you have to sign a new agreement.Find out if there are any fees you have to pay to take over the motel.
Also take a look at all the other contracts the motel owner may have with suppliers and customer groups to make sure they can be renewed when you take over the property.The contracts you want to cancel when you buy the property should be done without your being penalised.
Also check with the state and country about any planned changes and roadway construction in the area.Motels on highways or ones with plans of building loops will not be as valuable as you thought it would be.
The motel owner should provide you with separate bills of sales for all the fixtures, inventory and equipment on the completion of the motel sale.Make sure you don’t forget to collect the deed of the property from the motel owner.
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