Make Your Home Work for You: Start a B&B

A recent Realty Times article discusses the book To B&B or Not to B&B: The Fun and Facts of Operating a Bed and Breakfast, including whether this home-based enterprise is right for you.

You may have considered turning your home into a rental property to make some money, but there is another option for making your home work for you: starting a bed and breakfast. The book To B&B or Not to B&B: The Fun and Facts of Operating a Bed and Breakfast, published by Ptarmigan Press in 2002, discusses the pros and cons of making a B&B part of your lifestyle.

The book’s authors, Bruce and Mary Jaffary, have renovated and owned four B&Bs, each in a different place, and they have accumulated a wealth of experience and knowledge. Putting that to use, they developed seminars for people interested in B&Bs, consulting to existing B&Bs, the above-mentioned book and, in February of this year, an online seminar.

Opening and operating a bed and breakfast can open up many opportunities, but also many problems. If you love your community and are interested in meeting new people from different backgrounds and countries, a bed and breakfast might be for you. B&Bs also offer the following benefits:

• Additional income
• Tax advantages to put toward renovation and counterbalance income
• Opportunities to indulge interests such as cooking, gardening or decorating
• Business ownership and a more high-profile role in your community
• Investment in a business and real estate that could later be sold for a profit
• Financial and time savings by living and working in the same place

In their book, the Jaffarys use their extensive experience to offer advice and encouragement, as well as cautions for potential B&Bers. All of the above benefits may sound appealing, but there are also several issues to consider before you open your door to guests:

• “A B&B is not a 24-hour service but it can be.” You can dedicate one, two or three rooms in your home to a B&B, depending on your local bylaws. B&Bs with four or more rooms are usually called inns and can be subject to different licensing requirements. It is essential to understand your local bylaws before embarking on a B&B enterprise.
• “With higher prices there is always an expectation of high quality and service.” As with selling a home, research is essential to discovering a reasonable balance between operating a successful business and keeping up a steady flow of clientele. Factors to consider include commissions of 4 percent to 15 percent to reservation agencies, travel agents, tour operators and online booking services. Some B&Bs also offer senior discounts.
• “Can we make a living from our B&B?” This is a common question the Jaffarys hear, and they usually answer “no” if the owners want to depend entirely on B&B income, particularly if they are only using one or two rooms for the business. “With an excellent three-room operation, it is possible to make enough to live on… It will also depend greatly on how good an operator you are and how much money you are willing or able to put into marketing,” the Jaffarys explain. “With aggressive marketing, we have been able to nearly double our revenue in the second year of all of our B&Bs.”

You should also think about how you can make your guests’ stay as relaxing and pleasant as possible. In other words, don’t think that you are simply renting out a room. B&B guests often expect gourmet breakfasts, snacks, information on nearby attractions and beautiful decorations.

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