Launching your own guesthouse accommodation or bed and breakfast (B&B) is a challenging but exciting prospect. Whether you're looking for a side hustle, money-making addition to your property portfolio, or always dreamt of delighting tourists with your hospitality, this is your time to shine. Short-term rentals are experiencing a boom in demand as domestic and international tourists opt for unique stays with more space and places to cook.
If you're looking to get a piece of the action, Savas Nicolaides, Principal at Century 21 East Rand, says now's the time to roll out the welcome mat. And Kempton Park is the perfect location for a successful short-stay accommodation business.
Kempton Park's short-stay accommodation potential
There are two ways to get into the B&B or guesthouse business: you can buy an existing venue or start from scratch in an appropriate property. Either way, the location is an important factor to attract visitors. According to Nicolaides, Kempton Park enjoys a superb positioning.
"The area is in close proximity to O.R. Tambo International Airport, the biggest and busiest airport in South Africa. It saw over 8.2 million passengers passing through in 2021 and draws visitors locally and internationally from six inhabited continents.
"With its economic growth, particularly in the logistics sector, Kempton Park sees great traffic from business travellers.
"Kempton Park's suburbs offer a sought-after holiday experience. The area boasts excellent restaurants, shopping centres, and events. Short-stay visitors can experience unparalleled gaming at Emperors Palace Casino, get closer to nature at Pomula Park Nature Reserve, or race at Erora Motocross Track. The area has beautiful spas and access to three world-class golfing facilities: Kempton Park Golf Club, Avion Park Golf Club, and Serengeti Estates.
"Your guesthouse or B&B will also be close to other Gauteng tourist hotspots such as Sandton, Midrand, and Johannesburg. Your guests can travel the province with a Gautrain station conveniently located in Rhodesfield."
The presence of several short-stay accommodations in Kempton Park points to their profitability. Nicolaides says entrepreneurs can expect a healthy return on their investment. "Depending on your purchase/initial cost, there's no reason why you can't service a bond and manage running costs while taking in an 8-9% yield."
Process for starting a guesthouse business
"Start with an analysis of the area," advises Nicolaides. "Consider the appeal of your location, your target audience, the competition you will face, and whether other similar businesses are thriving in the area."
Once you've done your research, seeking the right property would be the next important step. "If you're buying a guesthouse, you will need to double-check the property has council/town planning approval or zoning permissions. If you're converting a property into a guesthouse, you will need to ensure there are enough rooms to convert and/or expand within approved council guidelines."
Top tips for future guesthouse owners
Beyond being in a popular area like Kempton Park, successful short-stay accommodations offer a good experience. According to Nicolaides, ensure you are priced affordably, offer a personal service and perks like breakfast, and ensure your property has features visitors appreciate.
If you're buying a Kempton Park guesthouse or converting an existing property, look for security features, ample parking, fibre connections, and entertainment areas like gardens, pools, patio areas, and lounges. Generators and backup water sources can help keep guests comfortable during periods of loadshedding and water restrictions.
Nicolaides also highlights the need for a marketing budget. "It's important to get the word out to the correct channels as marketing and exposure are key to attaining growth as soon as practically possible. Ensure you highlight everything that sets your short-stay accommodation apart and makes it a wonderful place for holiday-makers and business travellers."
Partner with the right agency in Kempton Park
Century 21 East Rand has several Kempton Park properties for sale that would be the perfect site for your B&B or guesthouse. The agency also boasts the local area expertise you need to get your business off the ground. "We are centrally located right in the hub of Kempton Park, with multiple property practitioners," says Nicolaides. "We would be able to best serve the needs of any potential buyer and offer sound advice on location as well as assist with the finance application. We can also refer you to our preferred conveyancer to assist in some of the legal requirements sought by the local council."