The pros and cons of being a bed and breakfast owner

If you’re looking to make the most of property assets you own or are paying off, you may have considered turning your property into a bed and breakfast. According to the Bed and Breakfast Association, the industry is worth £3.6 billion each year, with the country home to over 35,500 B&Bs.

Getting a slice of this pie for yourself can be a smart idea, but there are also some drawbacks to account for too. In this guide, get all the pros and cons you need to make an informed choice.

The pros of running a bed and breakfast

There are all sorts of reasons why marketing your property as a B&B can be a good choice.

• Make use of available space – Whether you are renting out part of your property or a second property you own, running a B&B puts all your space to work generating income.
• High long-term income – B&B rates are more expensive than the equivalent would be on the long-term lettings market, so if you can fill up your rooms with a constant stream of visitors, you can earn more money. Just make sure to use a calculator to work out the financials before you commit.
• Flexibility – As the B&B owner, you choose when your property is available. As such, if you live in the property but are frequently travelling away for business or pleasure, you can work your bookings around your lifestyle.
• Choose how involved you want to be – Not all hosts greet their guests in person, provide recommendations to the best places in the local area, or make friends with their guests. If you don’t want to be hands-on, you don’t have to be. Instead, you could hire a management company or assistant to handle the day to day.

The cons of running a bed and breakfast

Of course, there are some negatives involved with B&B ownership you should guard against.

• Bad guest experiences – As in any aspect of life, there are some bad apples when it comes to B&B guests; people who might damage your property. As such, getting insurance for B&B purposes may be beneficial in covering you should the worst occur.
• Potential lack of guests – While B&Bs pay more than regular letting, relying on a steady stream of short-term guests brings the risk of rooms going unused for periods of time. This, combined, may harm overall profitability.
• Listing fees – To market your B&B, you may need to pay listings websites management fees which can eat into your profits. As such, work out revenue versus cost before you get set up on the platform.
• Time and effort – Running a bed and breakfast isn’t simple. You’ll need to put time and effort in to transform your home into a B&B, market your property, answer questions, coordinate check-ins, arrange cleaners and serve up that all-important breakfast! If that sound long and complex, then B&B ownership might not be for you.

Turning your property into a bed and breakfast can be a great way to earn extra income, but do your research beforehand to make sure the pros outweigh the cons for you.