This is an extremely important decision and it can define how successful your business is going to be.
In my opinion the decision to buy or rent attributes to about 80% of your success. Even if you do everything else perfectly, your business will suffer if you make a bad decision with renting or buying a property.
Buying a property is a tempting idea, but I don’t recommend it unless you already have experience as a real estate investor/developer.
For most, you are beginning to build a business on a relatively new hospitality concept and it’s risky to sign a mortgage for 10-15-20 years without having some experience and numbers on running the space.
After operating your space for a while, you’ll have a much better idea of what exactly you want to buy and you’ll also have the numbers to show investors or banks.
Unless you have your own property, renting should be your “go-to” option and there are endless possibilities. Here are some questions to consider:
This is the best advice I can give you if you want to make a good deal. Think like them, don't try to idealize the situation. Consider the following points:
Of course, I'm simplifying a bit here. There is no step-by-step guide to executing a fantastic real estate deal, but I’ve shared a few key points with you to get started. You will probably make some mistakes but there is a high chance that you can avoid some of them if you read carefully.
Try to have more leads for the properties you want to rent. Talk to many people, research, hire a good lawyer for the contract and don't fall in love with a property you want to rent. At least don't show it to the landlord.
This article is part of the guide where I'm sharing tips on starting a coliving business.
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I have created a marketplace for business group travel. It's called Surf Office.
We help companies to organize offsites, we help hotels to bring group bookings. Almost 1000 hoteliers are subscribed to our Hotel Nuggets newsletter.
Before that, I created the first coworking and coliving space for digital nomads. It went well until it didn't.
Side projects 🛠️
Around 2019 I started to play with the idea of building a coworking cabin. It was my inspiration for Epic Monday - a site full of resources for people who are planning to start a cabin business.
Once I'm passionate about something, I deep dive into the topic, run tons of experiments, and sometimes come up with monetization ideas.
Hoodpicker started as a simple survey, then I created a comparison of neighborhoods in Lisbon, and now it's a set of tools for people who want to invest in real estate in Portugal.
Sharing ideas 💡
I have a small team researching ideas that combine hospitality, real estate, and tech. Some of these ideas I share on this blog.
But I share all of them in my personal newsletter. You can subscribe here:
Call for startups 🚀
Are you building something in niche hospitality? I would love to be involved.
I'm mainly interested in a) Designing hotels for offsites, b) Glampings for remote work, c) Apartments for nomadic families, d) Coworking villages, and e) Modern mountain lodges.
I can help you with funding and distribution. Happy to discuss your project over Linkedin or Twitter chat.
PS: If you live in Amsterdam, we can meet at the next hospitality coworking day.
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