I am writing this review as I read as she makes some good points no matter where you are starting up and I don't want to forget them. Such as the main causes for failure are -
(1) paying too much for a property or buying one that is too large and therefore being stretched to the limit to pay your mortgage every month.
(2) purchasing a property in an unsuitable location - ie middle of nowhere or where there are too many of your type of business already.
(3) underestimating how much it will cost to get the property to the required standard
(4)underestimating the time it will take to get the work done - I work to the rule of 2, whatever time the builders say it will take double it and add on at least 1/3 to the cost.
(5) underestimating other running costs ie tax, advertising etc and or if you have staff things connected with that ie tax, payroll etc
(6) over estimating rental income
(7) over estimating occupancy ie how many weeks you will get let in a season
(8) failing to allow for problems such as tenants that cause damage, who demand refunds, illness, family emergencies etc If you work for yourself there is no one to fill in when you need a week off at short notice.
MORE POINTS -
(1) be accessible, I know this is less important in the USA as people tend to drive but for example in France it is a huge advantage to be near an airport so as to attract the UK holiday crowd who only want a short trip from their arrival point. Also being near a ferry port could have the same advantage. In the UK I would advise the same it never hurts to be accessible however you don't want to be right up close to an airport! we are 20 mins from Leeds Bradford which has a shuttle bus every 30 mins and costs £3 we are a 5 min walk from the bus and train station as well which is a distinct advantage over our more distant competitors. Depending where you want to buy and your target market you may want to look at where the flights come from ie you are looking at targeting the UK market you want to be near an airport that does UK flights so look at where those flights are coming from. If they don't come from your target market are they planning on expanding?
(2) to extend your season are you near any of the following - beach, theme park, area of natural beauty, water parks, sports facilities, ie tennis, golf, pony trekking? Golf attracts all year round so is worth thinking about.
(3) remember toooo much land can be a liability not an asset! it all has to be looked after. If you fancy growing some vegetables and having a few hens you don't need 10 acres.
One of the people she has interviewed says whatever you estimate you will make in the first year decrease it by 25% to get a more accurate figure. I always say it is better to underestimate and be pleasantly surprised than be in a financial mess! (that info was from Bob and Celia Christmas (fab name!) www.larochecolombe.com.
I find this book generally very useful even though I am not moving to France. It focuses on the facts and figures and provides good sources of information to investigate further and doesn't look at the industry through rose tinted glasses as so many do. It points out there will be weeks when you don't let your property and to allow for that in your business plan.
Ive now finished this book and found a lot of it is very France focused which is the purpose of it so that's common sense. I would say this would be the very first thing you should read if you are thinking of buying a B&B in France or rent out a holiday home or Gite. There is alot of information on where to advertise if you want to have French visitors which is useful as well as large sections on tax and employment which would be a good place to start. Some of the information in the gite section and B&B section is repeated as the author is assuming you are picking one or the other. All in all a good read for the price.
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