Remote management after hiring a inn keeper

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kavitham

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Hi, Me and my husband are thinking about buying a BnB and have a inn keeper onsite. Has anyone tried this model. Did this work/ did not work for you?
 
We have done and are doing something like that, sort of.
The questions I have back to you would be: what are your expectations in terms of financial return on your investment in the B&B? How remote are you, and what exactly would be your role vs. the innkeeper's role in the management of the place?
It can work but there needs to be a great deal of trust -- you must have confidence in your innkeeper -- and you would need to make sure that your employees and all inn expenses are paid (a living wage) before you take your cut (if there is anything left over, chances are what is left could be a negative number!). This can be OK if the investment you are making is for your own future (and you are prepared for the financial realities), and the innkeeper is just an interim measure until you can free yourself to eventually take over.
The innkeeper that you hire (presumably) will not have an ownership stake, will not be building equity -- it's just a job. They may be enthusiastic about it and do the job very well, but the lack of equity can have a subtle and pernicious effect in the level of TLC given to the place and the business. In other words, it can be different when the person on the ground taking care of things is the actual owner rather than just a hired manager.
Related to all this is sorting out what is your role in the management of the business, versus how much control do you turn over to the onsite innkeeper. In lieu of an equity stake, consider what other incentives might help keep the innkeeper enthused about their role in the business...
 
I'd say it depends on you and the business in question. If you have the means to write a check and purchase it as an investment and/or it is a successful business with management in place and you've seen the books and can determined that the income can pay the help, make the payments and hopefully leave a little for you, then that sounds good, but it doesn't always work that way.
The prior owner of our business (tiny mom & pop motel) ran it as an investment with an innkeeper doing the work, considering that he was selling and the property was not maintained the best, I'd assume it was not beneficial to him.
We've now been here over twenty years, love the guests and the way of life, for us it is successful to the extent that it provides us a home in the area of our choice, today I might could hire an innkeeper to run it for us and still make a little money, but then I'd miss all the fun.
 
I am sure it can work, there are some great innkeepers out there.
 
Hey that's great if you have the $$. If it is a small B & B as one would say "lifestyle" why bother. You won't see any return as this would not be a good investment. Everything would be spent on maintaining the inn and the innkeeper. What's the point? Owning and running a B & B is a lifestyle we choose, if you aren't going to run it why do it? It is not a profitable investment unless it is a large place in a great location with great occupancy. I don't believe it is for a start up.
 
The point of a B&B for the owner, is probably the experience. And there are advantages to a property when owner occupied, B&B or personal residence.
Given that B&Bs come with a huge turnover, much higher insurance costs and risks, more complex tax reporting, staff (and their issues), food issues, constantly trying to keep the place full, often an older building with numerous issues and conversions needed...
For an investment point of view, it would make more sense to buy a well-chosen 1-4 plex and rent out the units.
 
Harborfields said:
We have done and are doing something like that, sort of.
The questions I have back to you would be: what are your expectations in terms of financial return on your investment in the B&B? How remote are you, and what exactly would be your role vs. the innkeeper's role in the management of the place?
It can work but there needs to be a great deal of trust -- you must have confidence in your innkeeper -- and you would need to make sure that your employees and all inn expenses are paid (a living wage) before you take your cut (if there is anything left over, chances are what is left could be a negative number!). This can be OK if the investment you are making is for your own future (and you are prepared for the financial realities), and the innkeeper is just an interim measure until you can free yourself to eventually take over.
The innkeeper that you hire (presumably) will not have an ownership stake, will not be building equity -- it's just a job. They may be enthusiastic about it and do the job very well, but the lack of equity can have a subtle and pernicious effect in the level of TLC given to the place and the business. In other words, it can be different when the person on the ground taking care of things is the actual owner rather than just a hired manager.
Related to all this is sorting out what is your role in the management of the business, versus how much control do you turn over to the onsite innkeeper. In lieu of an equity stake, consider what other incentives might help keep the innkeeper enthused about their role in the business....
Click to expand...
Very well said Harbor!
 
Harborfields said:
We have done and are doing something like that, sort of.
The questions I have back to you would be: what are your expectations in terms of financial return on your investment in the B&B? How remote are you, and what exactly would be your role vs. the innkeeper's role in the management of the place?
It can work but there needs to be a great deal of trust -- you must have confidence in your innkeeper -- and you would need to make sure that your employees and all inn expenses are paid (a living wage) before you take your cut (if there is anything left over, chances are what is left could be a negative number!). This can be OK if the investment you are making is for your own future (and you are prepared for the financial realities), and the innkeeper is just an interim measure until you can free yourself to eventually take over.
The innkeeper that you hire (presumably) will not have an ownership stake, will not be building equity -- it's just a job. They may be enthusiastic about it and do the job very well, but the lack of equity can have a subtle and pernicious effect in the level of TLC given to the place and the business. In other words, it can be different when the person on the ground taking care of things is the actual owner rather than just a hired manager.
Related to all this is sorting out what is your role in the management of the business, versus how much control do you turn over to the onsite innkeeper. In lieu of an equity stake, consider what other incentives might help keep the innkeeper enthused about their role in the business....
Click to expand...
Without the carrot of a bonus or a % for good occupancy, a hired innkeeper has no reason to bust butt to keep guests happy and coming in. The old - I get paid whether I work or not so why work. A bonus or % gives something to work FOR.
 
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone.
 
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
 
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
We are not in this to get rich. We are making a profit, it's not huge but that's ok. We saw a need in our area for a nice place to stay.
Our situation works for us. We have complete trust in our innkeeper and she also trusts us to help her if she needs it.
 
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
 
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
undersea said:
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
Click to expand...
Not necessarily. Beside the traditional "for-profit" business, there is such a thing as the "non profit" business/organization, and there is the "lfiestyle" business. Certainly all of these businesses need to have revenue equal to or greater than expenses, or they will eventually fail.
All of these businesses have three "stakeholders:" (1) the owners/investors, (2) the employees, and (3) the customers/clients/community. The difference between the for-profit, non-profit, and lifestyle organizations/businesses is the order of priority for these "stakehholders."
The for-profit business is the only one where making a reasonable profit for the money and effort expended is the main priority -- the ultimate reason for being in business. Providing goods or services valued by the customers, and providing a living the employees are secondary. Success is measured by looking at ROI to the investors.
For the non-profit organization/business, it is the provision of services to the clients/community that is the priority. Providing for the employees, and generating revenue are secondary to that primary mission. Because the services provided by these organizations is valued by society, we've given them special treatment regarding taxation and such. The business works so long as they can generate enough revenue (often in the form of donations) in order to cover expenses.
But then there is the "lifestyle" business. Here the first priority is providing a living for the employees (which typically are the owners/investors, as well). Making a profit above and beyond just making a living and covering the cost of investments would certainly be nice, but is not necessary for saying that such a business "works." This kind of business works so long as the owners continue to survive.
If you think about it, there are probably a lot of "lifestyle" businesses out there -- many independent small businesses are just people trying to eek out a living.
 
happykeeper said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
.
Click to expand...
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
 
undersea said:
happykeeper said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
.
Click to expand...
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
.
Click to expand...
undersea said:
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
Click to expand...
I guess what needs to be shared here is that you are not currently an innkeeper. If you have ever been one, I don't know. You have not said you were Undersea.
Perhaps a comment like "I am not an innkeeper, but..." Because what you say would be taken well if you did that.
And then you always shares something far out there which has nothing to do with innkeeping, like when you wrote:
"I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up."
Rentals, apartments, etc are not bed and breakfasts, you think they are similar, they aren't.
For some reason you feel they are alike, but they aren't. I know you have a vast array of experience in what you have done, and what you do currently, but the reason the members of the forum get riled up is that you are riling them. Having fun, being combative or whatever the reason you do this, is between you and you.
But speaking to others who come here for answers as if you are an experienced innkeeper is not on. You probably do not know that some of those you combat with may or may not be current or former presidents of bed and breakfast associations in various states, and well regarded members of professional b&b associations, many who teach classes at conferences, including PAII. Just as an fyi.
I realize you don't say you are an innkeeper, but the person seeing your replies has to read between the lines to figure that out.
I think what Haps is saying is "Can you play nice for a while? Can you try a little bit gentler approach?" You can attract more bees with honey...
Would you be willing try that Unders?
 
undersea said:
happykeeper said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
.
Click to expand...
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
.
Click to expand...
You didn't reply to the original post
 
Harborfields said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
undersea said:
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
Click to expand...
Not necessarily. Beside the traditional "for-profit" business, there is such a thing as the "non profit" business/organization, and there is the "lfiestyle" business. Certainly all of these businesses need to have revenue equal to or greater than expenses, or they will eventually fail.
All of these businesses have three "stakeholders:" (1) the owners/investors, (2) the employees, and (3) the customers/clients/community. The difference between the for-profit, non-profit, and lifestyle organizations/businesses is the order of priority for these "stakehholders."
The for-profit business is the only one where making a reasonable profit for the money and effort expended is the main priority -- the ultimate reason for being in business. Providing goods or services valued by the customers, and providing a living the employees are secondary. Success is measured by looking at ROI to the investors.
For the non-profit organization/business, it is the provision of services to the clients/community that is the priority. Providing for the employees, and generating revenue are secondary to that primary mission. Because the services provided by these organizations is valued by society, we've given them special treatment regarding taxation and such. The business works so long as they can generate enough revenue (often in the form of donations) in order to cover expenses.
But then there is the "lifestyle" business. Here the first priority is providing a living for the employees (which typically are the owners/investors, as well). Making a profit above and beyond just making a living and covering the cost of investments would certainly be nice, but is not necessary for saying that such a business "works." This kind of business works so long as the owners continue to survive.
If you think about it, there are probably a lot of "lifestyle" businesses out there -- many independent small businesses are just people trying to eek out a living.
.
Click to expand...
Thanks for covering the nuts and bolts. Well said.
 
happykeeper said:
undersea said:
happykeeper said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
.
Click to expand...
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
.
Click to expand...
You didn't reply to the original post
.
Click to expand...
I see that it is not aligned.
I am a little unfamiliar with the posting software.
 
happykeeper said:
undersea said:
happykeeper said:
undersea said:
Lea Ann said:
We are doing it now. We have partners and we each own our homes. We still have one child at home, he's 12. It works for us. You just have to find the right person. Our first innkeeper didn't work out. That's a whole different story. The innkeeper we have now is great and we love her.
You have to find the right person that's going to love your business as much as you do. Your business is your baby and you aren't going to leave your baby with just anyone..
Click to expand...
But as people were saying below, what is the definition of "works"? Just being open does not make it successful. As you said, prior person did not work out. The second person may/may not stay. I had a property manager for my 6-amily property I trusted. After a couple years, he wound up getting arrested and really screwed things up.
The definition of "works" for a business, is making a reasonable profit for the money and effort expended, for an extended period of time.
A lot of business owners count as profit, what is actually their time invested. That is not a profit, it is a wage.
I seriously doubt this is a good idea. For most people, it would make a lot more sense just to rent the property than to do this.
.
Click to expand...
why be so rough? Really. What's the point of beating up on someone who was simply adding some encouragement around how it can work out for some people.
.
Click to expand...
This was neither rough nor beating up. The point of the thread is the original post, asking if a good idea.
.
Click to expand...
You didn't reply to the original post
.
Click to expand...
I see that it is not aligned.
I am a little unfamiliar with the posting software.
 

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