With UK households spending over £20 billion on accommodation services every year, hospitality and tourism will always face high consumer demand. Whether you live in a popular town, an ancient city or a charming rural village, starting your own bed and breakfast business could be lucrative.
In the following guide, we’ll outline a few of the most important things to bear in mind if you’re considering opening your doors to overnight guests for the first time.
Getting started
Not all bed and breakfast businesses look the same, so it’s important to be aware of the different ways to host guests legally and safely in your own home or company premises. Whichever route you choose to take, don’t forget to take out comprehensive insurance for your B&B to stay protected.
- Private B&B
If you open private bed and breakfast accommodation, you’ll be in full control. This might involve responsibilities including cleaning, renovating and licensing your new business. One of the most crucial aspects of running a B&B is your obligation to provide breakfast for your guests – so you’ll also need to know your way around a good fry-up.
- Using Airbnb
Using a platform like Airbnb could be one of the most effective ways to earn money through your new guest accommodation. Airbnb’s quarterly profits were up 58% year on year midway through 2022, proving that guest demand is as high as ever.
Becoming a host on Airbnb is simple, but you’ll need to be organised before you apply. Consider if your space would be an effective, welcoming one for guests, before filling it with basic amenities and formally listing it on the app. You’ll just need to pay a service fee, which is typically 3% of your booking subtotal.
Keeping safe
One of the main risks of letting out space in your home involves your personal safety. Even though you might not be at risk of physical violence, you’ll still need to find a safe, secure spot to store any valuables or belongings with significant sentimental value.
While an element of trust is involved, you still can’t afford to give any guests the opportunity to steal your possessions or your identity. You should be even warier if you’re renting part of your home that’s connected to your private living area.
Making a profit
Opening guest accommodation entails risks and rewards. You’ll be able to make passive income from your home or spare room, but you’ll pay a fee if you choose to let via a platform like Airbnb. In one way, this takes some of your agency away from your new venture.
To keep on top of things, you’ll need to draw out a comprehensive and realistic financial plan. Try to focus on the necessities, only reaching for more ambitious plans once you’re picking up a steady influx of visitors.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence
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