holiday rental as a wedding/function venue

[jsoe]

Hi,
I've seen a few topics about holiday rentals but I'm interested to know if anyone has run or own a holiday rental (big houses on large land) that allows weddings, or corporate retreats, birthday parties like the ones below?
http://www.stayz.com.au/80767
http://www.stayz.com.au/85252
http://www.stayz.com.au/21388

I see great rentals and even additional charges for events/functions. I guess partnering up with local businesses such as florists, cake makers, caterers, etc is necessary. I'd like to hear comments, tips, suggestions, experiences, etc please.
Thanks.
JSoe

 

[Aaron_C]

Yes it can work for sure. It's a bit hands on though because you have to clean the venue and keep all the gardens pretty etc so the overheads aren't that small.

 

[pennyk]

I do have a friend who tried it out unsuccessfully..... but they had completely the wrong sort of personality to run any sort of business, and it was just a pipedream for them.

I think you would definitely need to view this as a business to make it work.

 

[Aaron_C]

Yes Penny you reminded me - this will probably be treated as a commercial enterprise. So the property's use will be commercial - and it will be treated as such by a bank.

 

[jsoe]

An interesting point Aaron.
We want a lifestyle change as we're starting a family. Our intention is to buy a nice house on big land in rural / semi-rural area. We'll live there first and then get the marketing, contacts, partnership with local shops, etc going. Then in about a year later, we'll start running it as a commercial premise. We'll then have to move to a smaller house which we'll build in the back.

In that case, we may get a residential loan first? It's a bit of a complicated process. We can't jump in straightaway and run it as a business coz we don't know where to start or have no contact at the moment yet.

Yes, cleaning will be costly, but we both are handy so we intend to share the hard work.

 

[Aaron_C]

In that case, we may get a residential loan first? It's a bit of a complicated process. We can't jump in straightaway and run it as a business coz we don't know where to start or have no contact at the moment yet.

Yes. Prior to turning it into a business, you will get a loan as a residential security. After that you can basically do what you want with the property as they won't know what you're doing with it anyway. But if you ever want to get a new loan in the future that would require a valuation, for example, the bank will no longer lend on it as a residential property.