Have you ever wished that your home could earn you some of the money that you have spent on it? For most of us, getting some money out of our home is a matter of waiting for time to go by so that it builds some equity. The only time we can truly earn some money off of our homes is when we sell that final time, often before retirement.
For thousands more, however, houses can in fact pay for themselves and maybe even earn a decent income for the owners besides. From the rainy city of Hilo in Hawaii to the lake country of Lindsay, Ontario, homes are being transformed into businesses by all manner of people. Just how are these homes earning their owners money while still in their hands? By being turned into bed and breakfasts!
In this series of articles, we are going to explore some of the advantages of running a bed and breakfast out of your home, as well as how to go about it. To begin, let's take a look at some of the foundations you will need in order to run one.
There is no point in starting a bed and breakfast if you are not located in a popular, or busy, town or city. Bed and breakfasts aren't all tourist oriented; there are many business bed and breakfasts which do quite well. Either way, however, you have to be located in a place where people frequently visit.
Before you can turn your home into a bed and breakfast, you will likely have to make a couple of changes. Separating the rooms properly and putting bathrooms in the ones people will stay in are just a couple of the steps you will likely need to take. It might mean you need extra money; fortunately your new status as a business opens up some extra doors for this. Instead of just residential, you can also shop the rates at a mortgage broker's office such as MorCan Direct and come up with the best long term funding plan.
Remember, too, now that you have turned your home into a business you have to keep a different type of financial record and may receive additional tax breaks. If you had to do some renovations on the property, such as adding another bathroom or updating the appliances to energy efficient models, you may qualify for a HST rebate. Speak to Rental Rebate to ask more.
Getting the word out
Finally, you need to make sure that people know about your bed and breakfast. These establishments still don't enjoy the reputation given to hotels and motels, which is a real shame. From advertising at local tourist attractions to printing out business cards, there are many avenues to take when you are looking to spread the word about your business.
Bed and breakfasts are a great way for your house to pay for itself. They are popular with tourists and business people alike, as for one price they offer not only a room to stay but also great homemade food. Communications efforts are part of the keys to making your venture a success, as we shall see in the next article of this series.