Your home may not actually be a castle, but if you have the space and the ambition, it could be a money-spinner. There are lots of ways to make money from property without having to sell it, whether you're renting out a spare room or going all out and turning the house into a B&B. Waking up at the crack of dawn to cook a full English may not be to everyone's liking, but if you're looking to get out of the rat race, it could be the answer.
“Running a home as a B&B is a great idea for anyone with a big house and the need for some extra cash,” says Jasmine Birtles, editor of Moneymagpie.com. “I have friends whose children have flown the nest who keep their family home by taking paying guests. It's a flexible earner because you say when you want people to stay; if you want to go away or just have some time alone at home you can simply not take bookings.”
Before you get carried away by the lure of being your own boss, however, remember that setting up a B&B business is a serious commitment. Even if you're offering only a few rooms there are many rules to follow, so you do need to do your homework. Turning a residential house into a B&B involves three key stages: getting permission, fitting out guest rooms, and marketing your business.
First you will need to check out any local regulations. You may need a “change of use” application to run a B&B business from your house, even if you aren't making any structural changes. If there is building work to be done you may need to apply for permission first. Remember that building regulations change regularly and rules vary, so it's essential to check with your municipallity.
Also look into into local health and safety regulations.
Youmay also need to talk to your mortgage lender. The next call to make is to your insurer; although it won't necessarily follow that you will need to change your home insurance policy if it's a small B&B, larger businesses will need to apply for business insurance. It is worthwhile taking out specialist insurance to cover you for things like public liability should a guest or employees injure themselves.
Aside from all the initial legwork, above all, you should seriously consider whether you are truly suited to the lifestyle of a B&B owner.
“People need to consider whether they have the right personality to run a B&B. You have to get on and like most people as you're inviting complete strangers into your home,” says Karen Thorne who owns her own B&B in a converted granary in Shropshire and also runs a B&B Academy (bedandbreakfastacademy.co.uk) offering courses to prospective B&B owners.
“Also be aware of the realities. It's not a case of finishing by 10am and having the rest of the day to swan round the garden with a G&T. If you're doing all the cooking, cleaning and ironing yourself you could be looking at 10-hour days. Throw doing evening meals into the mix and you could find yourself starting at 6am and not finishing till gone 10pm.”
If you are confident that running a B&B is your dream job, make sure it's a successful one too. Location is crucial to your success, so get in touch with the local tourist authority to see how many visitors your area attracts each year and find out how many B&Bs are already in place nearby. Even if you're confident your home is in the right place, the next important piece of advice, whether you're aiming for cheap and cheerful, cosy country charm or even a “boutique” B&B, is to allocate part of your budget to marketing.
A good website is a must these days but Thorne says that it's how you promote your website that will make the difference, using search engine optimisation to get it found on search engines such as Google, paying for internet adverts and using social media such as Twitter and Facebook to promote your business.
“Potential B&Bers should also seriously consider having online booking as more and more people expect that these days - 85 percent of my bookings are made online,” she says.
If you're too nervous to take such a big step, test the water by renting out a spare room.
Fiona Potts, 49
When Fiona Potts, left, was made redundant after 20 years of working as a facilities manager in Paddington, London, it finally gave her and her husband the push they needed. The plan was to leave their home in Hampshire and set up their own B&B. They finally found the perfect farmhouse in October 2009, situated within 16 acres of pastures in Dolanog, Wales. “It was something we had talked about doing in the future, but because I was made redundant we decided maybe we should think about doing it sooner,” says Fiona.
The couple had three en-suite bathrooms installed and had to fork out extra cash to fix drainage issues, replace four windows and redo the drive, but after six months, Gwaenynog Farmhouse (www.gwaenynog.com) was open for business. The expense of setting up means that they are not yet making a profit but Fiona is confident that they will be by this time next year. She has no doubt that they have made the right decision.
“We had extra expenses that we hadn’t anticipated and you certainly learn as you go along. We’ve had the odd collywobble but nothing that would make us change our minds. We’ve done the right thing and we love where we are.” -
The Independent on Sunday