Property description

This luxurious and spacious farm style guesthouse experience offers four private and fully equipped self-catering units. Each unit accommodates two guests. 

Location 

Only a kilometre away and less than three minutes’ drive, its main source of clientele are patients and visitors to the well-known Netcare Unitas Hospital in Lyttelton in Centurion. Those who are familiar with this hospital knows that patients check in from across the globe for its specialized medical services that are not available in their own towns or regions. These patients need accommodation before they check in, and after they’ve checked out, especially if they need to recover before making their long trip back home. Off course their loved ones will need accommodation for the duration that they are in hospital, and what better way to check in to a tranquil, clean and relaxed atmosphere minutes away from the hospital.
 

Revenue and Occupancy 

Originally long-term rental accommodation, this property investor saw the opportunity in drastically increasing revenue by pivoting to short-term rentals. Since implementing this new rental strategy, and only advertising on one short-term rental platform the current owner has already seen occupation rates of up to 50% per month after just three months.  

Property Features 

These four self-catering units range in size to accommodate different budgets with a current average of R1000 per night. This daily rate has the opportunity to be increased as the guesthouse become more in demand. The two larger units include a spacious bedroom, lounge, kitchen and bathroom, with one of the units having its own patio, braai facility and private use of the swimming pool. The two smaller, yet comfortable units consist of a bedroom, a bathroom and a kitchenette. Each unit has its own private outside area, surrounded by a luscious well-established garden. The big windows that bring the exterior greenery and kaleidoscope of colours to the inside, enhances the tranquillity that the guests experience. Each unit is uniquely furnished with quality furniture, some of which are imported. The guesthouse offers enough safe and secure covered parking for the guests. 

Growth Potential 

Over and above the clientele from Unitas Hospital this guesthouse is situated very close to a prominent Afrikaans high school, offering stay-over opportunities to parents who attends sporting events throughout the year. The Waterkloof Airforce base is only a fifteen-minute drive from the guesthouse, offering luxury and comfortable accommodation to its visiting delegates. The only marketing at the moment is through one short-term rental platform. The opportunity exists to expand to a few other prominent short-term rental platforms and its own website and social media pages. 

The neighbouring residential home has the potential to be turned into a guesthouse, and an arrangement could be made with the current owner to be first in line should they decide to sell, which would in turn double the revenue on this prime location.  

Operational Details 

Due to its self-catering nature, the operation does not require much and thus keeps the overheads low, allowing for bigger profits. Currently the guesthouse is being run by the owner, a gardener twice a week and a cleaner five days a week. The owner recommends two, seven days a week, cleaning staff once the guesthouse runs at full capacity. The owner has offered to stay on for one month after registration to assist in a proper handover of operation requirement and systems that are already in place, should it be a requirement from the new owner. The opportunity exists for you to fully automate your systems making your property investment a low maintenance, well-oiled machine.  

Permits and Municipal Requirements 

The seller is working closely with an architect and the local municipality to secure an above-board operation. The seller has already made a large financial investment to the municipality to start the rezoning process to business rights for the purpose of a guesthouse and apartments. The seller is currently finalizing the geo report and bulk services with the municipality and ensures all municipal charges will be paid and relevant permits in place before registration to the new owner.  

Investment Potential  

Depending on how you structure the terms of your commercial loan and the size of your deposit you could show a positive cashflow from day one. Or as a cash purchase your initial capital outlay could be repaid in a few short years, making your return on investment
infinite. Whether you are an entrepreneur on the lookout for a business that you can grow and sell later, a property investor wanting to add to your portfolio, or looking for an investment opportunity that will offer ongoing income potential for your old age, this investment is worth considering.  

Please note: If you are a first-time investor always consult a qualified financial advisor before you invest.