Things To Consider

If you purchase an existing bed and breakfast with all of its trappings, you can cut down on the need for renovations and furniture. Ideally, you should look at homes in popular tourist areas, as these will be easiest to keep fill with guests on a regular basis. Usually people who choose to stay at B&B’s aren’t looking for a bargain, but are willing to pay well for an elegant or homey setting, where they will receive very personalized service. Therefore, you should take steps to provide first-class accommodations and can price your rooms accordingly, as long as the market in your area can bear the expense.

When pricing your rooms, look to similar facilities in your area for comps and also consider what you are offering for guests. For instance, many guests today prefer private bathrooms, so you can charge more for rooms with the bathroom attached. Shared baths are also acceptable, but the rate for this type of situation is typically a bit less.

What You Can Expect To Earn

Statistics reveal that most bed and breakfasts operate at only about half of their capacity, so if you are running a bed and breakfast with five rooms to let, you can assume that not all of them will be full on a regular basis. In addition, if you live in a seasonal place, such as an ocean side resort, assume that during the winter you won’t get many visitors. Out of 365 days a year, if you charge an average of $100 a night per room, that’s $182,500 annual gross income you can expect to make if you filled all five of the rooms every night. So if you were able to operate at 50 percent capacity, you would make $91,250 before taxes and operating expenses.

A Final Note

You will need to find out what regulations exist in your area for running a bed and breakfast. These can vary by state and municipality. Often the size of the home (i.e., how many rooms you are renting and how many guests will be staying) is a determination in whether you need any special licenses and zoning approval, but check with your local Chamber of Commerce to find out what the rules are in your city or town. Some of the types of licenses you may need include a motel license, food service license and trade registration license. You also may need approval for meeting all local and state fire codes. Finally, you will need to check with your state revenue department to find out about charging hotel and sales taxes.

Finally, if you think you’d like to pursue the option of owning a bed and breakfast but aren’t quite ready to make the financial commitment, you might look into being an "inn sitter" for other owners of bed and breakfasts who need someone to fill in when they are away. This is a great way to try out the role to see if you like it before you jump right in.