Costs of Running a Guest House

wallet with tape measure around it
wallet with tape measure around it

Deciding to run a guest house is a big decision and often a great leap from standard nine-to-five working days.

Whether you’ve always dreamed of owning a guest house by the beach or just want to explore another one of life’s paths, running a guest house can be a rewarding and successful business.

To find out more about the costs of running a guest house and how you can make it a profitable endeavour, keep reading.

Start-up costs

The initial upfront costs of running a guest house often tend to be a big financial investment. You may cover these costs by using savings or you even have lenders, investors or guest house finance.

Setting up your guest house involves three main stages. You will need to obtain guest house permission, planning and compliance, ensure the living space is suitable and well equipped for guests and you may even want to think about how to market your new venture.

Everything from fire safety regulations and TV licenses to guest bed sheets and towels must be allowed for in the start-up budget.

Initial upfront costs may seem a big expense, but you are investing in your business premises.


Ongoing house maintenance is another costly factor to account for when running a guest house.

When running your guest house general wear and tear and inevitable issues such as blocked sinks, broken boiler and damaged appliances are bound to occur. Everyday maintenance will also need to take place through the guest house such as cleaning, washing and tidying before new guests arrive.

Property costs

And it’s not just the inside of the house that will need maintenance. The actual property itself can also rack up some extra costs. In addition to monthly utility bills, the property costs can include renovations, modifications and general upkeep of the building.

Depending on whether you have chosen to build, buy or renovate, the property costs you will incur will differ slightly. You can choose to start from scratch, buy an existing guest house or even transform your current home.


Supplies in a guest house can range from bedding and towels to toiletries and bathroom amenities.

Although they may seem a small expense in comparison to some of the initial start-up fees, supplies in a guest house need to be continually topped up and replaced for new visiting guests.

How much you need to budget for supplies in your guest house is dependent on the experience you are wanting to offer guests. For example, if you are running a luxury guest house you may decide you would like to provide guests with extra supplies such as a complimentary welcome hamper or lavish body wash in the bathrooms.

However, you may prefer to run and advertise a basic retreat and supply the minimum amenities. It’s also worth noting that the experience you offer guests can, and should, be reflected in the guest house hire price.

Find out more

For more information about guest house finance and where to start with getting a commercial mortgage, get in touch today to discuss your plans and the options available!

Stewart Hindley
Specialist financial experts helping you secure commercial loans across the hospitality, leisure and commercial property sectors.

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