Owning and operating a guest house can be very costly but there is a good chance of making a great income from it. The upfront expenses will be the highest, especially if you need to buy and develop a property. You’ll also need to apply for a change of use from residential to commercial. If you are going to alter the property you could require planning permission. At the end of the day you’ll need to pay business rates and other fees too. The costs can easily add up but if you run the business yourself and get good occupancy you can make a nice income.
Finding funding for your venture can be difficult especially if you are buying a new property. If you already own a home and want to sell it to finance the enterprise this can cause big delays and stretch your finances. You can get a mortgage to help purchase the new property or to cover development and moving costs but you’ll need a larger deposit. On top of this it is important you understand the terms of the loan and keep up to date with payments or your whole business could be at risk.
One important thing to avoid is cutting corners to save costs. If you want your guest house to be a success you need to provide the right standards with everything. This means no mismatched furniture or badly designed rooms to save on the costs. You should also make sure you offer a great breakfast with quality ingredients and cater for all kinds of dietary needs. Making your guests happy is paramount because their feedback can either encourage other visitors or put them off.
If you’re looking for guest house funding there are a number of lenders in the UK offering mortgages and loans secured against the value of the property and your business plan. At Stewart Hindley & Partners we specialise in helping people to find the right finance and get started with their business. As part of the service we will discuss your plans, help you to do some important calculations and work on your plans too. All of these things are essential before you start searching for funds.