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  • Opening a hostel/budget accom in high volume farming area.

    updated 2 years ago 0 Member · 1 Post
  • Charles

    Member
    July 16, 2019 at 4:58 am

    Hey guys, My idea has been with me for a while now, but it all seems to good to be true. I grew up and work in a small town 1 hour outside of a major city which has hundreds of casuals and backpackers working almost year round. I worked along side these casual workers for years, now I am in charge of hiring them. we generally have between 10-20 backpackers at any one time, and every single one of them asks about where to stay. The area has very few options. One major hostel, around 60 beds, which costs $150 a week per bed. Very often full even during quiet season. Then a few small ones, some house shares and some illegally operated hostels. All similarly priced None of this seems to be filling a glaring requirement for cheap but good accomodation for backpackers who stay for generally 3-6 months. They all complain about the big hostel. It’s known for bed bugs. One hostel is $150 a week, has 24 beds and 1 shower and 1 toilet. It’s horrid… but full. I have really wanted to buy a nice big house and open something, because I see very few downsides. If I keep it small, 10-20 beds, mainly house people that work for our company, at a similar $150 a week rent say 15 petiole a week average Income would be $2250 a week. What expenses am I missing or not budgeting for? Mortgage on an 800k house + 50k setup – $700 per week Bills and rates – $250 per week Toilet paper, Netflix, internet – $100 week Maintenance – $250 week (seems like a lot) Washing – $100 week (based on 20 loads at a laundromat weekly) If I did all the cleaning, reception, those kind of odd jobs that need looking after, how does this not make a bucket load of money? Scaling up from 20 beds to 60 beds also isn’t that hard. A few local place I have looked at for 800k would have comfortably fit 50 backpackers if you installed another bathroom. Some areas close by even qualify for the 88 day extension on the visa, making it very attractive. This isn’t like one of those beachside places where people stay for 2 days on a warm weekend. People live here for 3-6 months working to save money to travel. Turnover costs and bed replacement are low Does anybody have any experience who an shed some light. The dream is to own it and have somebody else run it as a side gig, but I believe I would need at least 12 months hands on to get it running Cheers for your help submitted by /u/jd_sleepypillows [link] [comments]

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