You may be toying with the idea of running a B&B, especially with the convenience of living in the same place as your work. Long work commutes can be quite off-putting and a B&B is definitely a way to avoid any sort of travel for work.
Accounting for a fifth of the UK’s serviced accommodation industry, there is definitely something attractive about this business venture.
A B&B can be extremely rewarding, as you are part of a ‘holiday’ experience and people are generally happy to be on vacation. You get the opportunity to meet new and different people, can afford a more spacious and beautiful home, minimise your expenses and take time off during the off-peak season. But, a B&B does require long hours and is not for the faint hearted. Socialising is a must and there are certain adjustments you may need to make to your lifestyle.
So before you plunge into a B&B business, you need to be aware of the considerations that need to be taken into account including the changes to your lifestyle.
When buying any business, location is a big factor and this is no different when looking to purchase a B&B. In particular, you need to look at whether you want to run the B&B all year around or only during the peak season.
You also need to look at the type of clientele you want to attract. A B&B where the accommodation is saturated may see a low price band and therefore, your revenues and profits may also be low.
Other considerations you may want to look at include taxes, zoning restrictions as well as environmental restrictions.
Renovations and upkeep
How much work does the property require? It may be all well and good to find a B&B but if the property itself is not competitive enough for its location or purpose, you may need to invest in some upgrades or renovations. And if this is the case, you need to factor in that cost on top of the purchase price. You will also need to consider the time required to undertake the renovations as that will delay the time it takes for you to open up for business and start generating revenue.
You can engage a commercial surveyor so any obvious structural issues can be picked up from the get go and unwanted surprises are avoided.
Opportunity for growth
Although you may not immediately think about growth, this is a factor you should probably have in the back of your mind. Especially if you want to expand, any restrictions on further building or planning permissions can be a headache if not known from the outset.
Effect on lifestyle
When running a B&B, you need to be prepared for long hours. Guests check in late, leave early and so on. You can put restrictions on check in times but lack of flexibility can affect your popularity.
You don’t need to endure long hours to commute to work but having a residence and business at the same premises also makes it a little difficult to maintain a balance between home and work. And if you’re operating the B&B with your better half, you’ll be surrounded by each other 24/7 - so that can also take some getting used it. However, you will be meeting new people day in and day out, and this may become a no-issue.
A B&B is definitely not for everyone, but for the right person or people, it can be rewarding and a business venture with a lot of opportunities for growth.