It’s hard to deny the appeal of older homes. Whether the house is settled in a quaint town like the fictional Stars Hollow (Gilmore Girls, anyone?) or a more traditional residential area, old homes often catch the attention of many people due to their character, architecture and history.
Older houses, especially large historical ones, hold the appeal of turning your old house into a B&B. But how can you accomplish such a feat? Keep reading for some pointers.
Backstory
Old houses possess a special charm and character that pulls at my heartstrings. We currently live in a 1916 Foursquare style home, the quintessential American home. And while I love my house, it’s gotten far too tiny for our growing family. I find myself dreaming of buying a large, sprawling old house.
To fuel that desire, I recently binge-watched Cheap Old Houses on Discovery+. If you haven’t watched (BTW, shame on you!), in each episode hosts Elizabeth and Ethan Finkelstein tour bargain-priced (i.e. under $150,000!) old houses for sale across the US.
Some of the old houses they tour are HUGE! SO much square footage. More square footage than my family of 5 could ever need or use. But that didn’t stop me from still dreaming of buying and rehabilitating one of these big old houses.
But what could we do with all that extra space? It made me wonder (and jump right down that preverbal rabbit hole) – what does it take to flip an old house into lucrative lodgings? What should homeowners consider before turning their old houses into B&Bs?
Curiosity led me to work with some folks familiar with B&Bs and learn tips on what to consider when turning an old house into a B&B. I’d like to give a shout out to the B&B owners interviewed below, as well the MoneyTips staff, for helping me research and pull together this post.
Turning Your Old Home Into a B&B
Before you get swept up into the romance of running a B&B, here’s a few things to first consider. While working for yourself and meeting interesting people may sound right up your alley, turning your old house into a B&B is a serious business endeavor that if done incorrectly, can lead to severe and stressful financial consequences.
From a personal perspective, gathering these tips was an eye-opening exercise! It made me realize the immense level of blood, sweat and tears homeowners pour into their old homes to transform it into a welcoming oasis to visitors!
1. Determine Feasibility
Desire is a powerful motivator, but beginning this journey is about more than that. After all, every idea is not a great business venture. So before you jump into turning your old house into a B&B, there are a few things you should consider regarding feasibility, such as:
- Financing
- Local restrictions
- Geographic location
- Time and responsibility
Financing
A crucial step in determining how practical it is to open a bed and breakfast is figuring out the financial aspect of the process. It will require you to answer some weighty questions. Most importantly, can you afford to start a business? Additionally, what personal financial sacrifices may you have to make in order to turn this dream into a reality?
Beyond deciding whether or not you can afford to open a B&B, you also need to figure out how you will finance it. It might not be as easy as you think. There are quite a few requirements for eligibility. Could a personal loan best serve your needs? If so, you’d better take into consideration the required credit score for a personal loan. Or will you need to utilize a small business loan?
Lynn Pechuekonis, proprietor of Rockhaven B&B in Harpers Ferry, WV, suggests that if you plan to use home equity obtained from refinancing your mortgage, do it well before you open the business. “We learned too late that once you establish your home as a B&B, the bank will consider it a commercial property, which comes with higher loan rates.”
Once you’ve secured a mortgage, you also need to consider ongoing expenses, such as increased taxes, utilities, groceries, insurance, marketing, and cushioning an emergency fund. And of course don’t forget to pay yourself!
Whatever means you choose to finance your business, make sure you are being realistic and avoiding excessive debt.
Local Restrictions
In addition to money, local zoning restrictions could be a barrier to achieving your B&B dreams. Because of this, it’s important to do your due diligence. It would be awful if you took the time to secure funding and make all the other necessary preparations to set things in motion, only to find out that you can’t actually see this venture to fruition.
Basically, you’ll need to find out if there are any rules where you live about running this kind of business in a residential area. This will be particularly important if you live in the home you’re planning to transform.
Fortunately, figuring this out isn’t too difficult. You can start by checking with your local zoning office. They can provide you with a list of regulations, if applicable.
Best case scenario, depending on your locale, there may not be any zoning ordinances. Worst case scenario, you’ll have your work cut out for you as you try to create an inviting and appealing space for guests while adhering to local restrictions. Such a case does not have to serve as a deterrent; it will just come down to how badly you want to run a bed and breakfast.
Location
Location, location, location. When is it not important? If you already live in the home you are planning to use for your bed & breakfast, there’s not much you can do about the location. However, if you would like to purchase a house with B&B potential, you have a little more wiggle room. Regardless, you should confirm answers to the following questions:
- Is your property centrally located?
- Does the area see lots of tourists?
- What’s the parking situation?
In all honesty, if the experience and environment you offer is special, your business can overcome many barriers associated with a less than ideal location. However, that doesn’t mean you can ignore this important variable altogether, as it will take time to create the kind of buzz about your B&B necessary to combat location struggles.
Time & Responsibility
It’s easy to get wrapped up in the excitement of pursuing a long-held dream. However, once plans for bringing your aspiration to fruition are underway, reality sets in. Let’s face it, any business requires time and energy, unless you have beaucoup bucks to hire a full staff.
Realistically, that’s not most people’s situation.
You need to be sure that you have the commitment it takes to keep the business afloat. Most importantly, you should ask yourself if you have the time and energy to dedicate to this endeavor. Your enthusiasm could lead you to believe that running your bed and breakfast will be a breeze. Do not fool yourself. Unless you have a business partner, much of the responsibility will fall on you until you are able to afford to hire employees. So, be realistic and honest with yourself before moving forward with your plans.
2. Tackling Renovations
Beyond determining feasibility, it’s vital that you consider how you will go about creating an appealing environment for guests. Renovations and upgrades are particularly important for old and historic homes. You want to maintain the historicity, character and integrity of the home while creating an inviting space for guests. There is a fine line.
Home sharing companies such as Airbnb, Vrbo and Homeaway have changed the game for traditional bed and breakfasts. While guests may relish the idea of a traditional B&B stay, their expectations may be more in line with what modern home sharing companies offer, specifically when it comes to amenities. When turning your old house into a B&B, think about what advantages your space offers in comparison.
To maintain their old house charm but still provide modern amenities, Rockhaven B&B left the majority of the old house completely intact, and instead converted a walk-out basement into a guest room with all the modern amenities. “We left some of the stone foundation wall visible and let the stone and the concrete floor drive our design, a mix of industrial, lots of vintage, and bohemian style with a spa-like bathroom.”
The result? Success! While this guestroom looks different from the rest of the house, it’s booked well in advance and is “super popular” with guests. (And I can vouch for that since I tried to book last summer and there were no vacancies for my dates!)
Cathy & Russ at Riverside B&B also balanced the old with fine art and antique bedroom furniture, sinks and mirrors in each bathroom, but modern toilets, tubs and showers. In the main common areas, such as the main dining room, living room and foyer, they showcased the original refinished hardwood floors and crown molding. To achieve a historic aesthetic they “employed a master carpenter to ensure authenticity.”
To capture that old house essence, familiarize yourself with your home’s history so you can avoid encroaching on it with cosmetic improvements for your business. If there are features that you absolutely must get rid of due to codes or other reasons, try to preserve their memory through photos that you can incorporate into the decor of the home. Doing so can add to your guests’ experience, too. Need some inspiration for how to create the most visually appealing space for visitors? Take a look at what other innkeepers have done.
As you are working on beautifying your B&B, don’t forget to ensure the house meets health and safety standards. Every business is subject to certain health and safety requirements. At the bare minimum, you’ll need to adhere to state regulations for fire safety and sanitation related to food service. Old houses are known for multiple fireplaces. For Cathy and Russ at Riverside B&B located outside of Pittsburgh, PA, “three fireplaces downstairs meant additional safety concerns to make sure everything was up to code for the building inspector and the insurance company requirements.”
3. Don’t Forget Advertising
You might think the same charm that drew you to your home will also lead hordes of people to your bed and breakfast, but unfortunately, that’s not how business works. While word of mouth will do you some good, you will need to put some time and thought into a real plan for promoting your bed and breakfast to attract the ideal B&B guests.
Advertising is especially important if you are planning to run your bed B&B independent of home sharing sites, as those companies are your competition. In addition, if you are working to reduce the impact of an awkward location, advertising needs to be your best friend. In addition to word of mouth, formal advertising will allow you to highlight key features and amenities, along with unique experiential opportunities that your B&B offers guests.
One way to draw in tourists is by joining your local bed & breakfast association. These associations are typically location-based, either by state or region. Travelers looking to visit certain areas may come across these association sites where they can find amazing B&Bs like yours. Each association operates a little differently. So, you’ll need to contact them directly to see how promotion works.
Opening a traditional bed and breakfast, especially out of your home, is a unique venture, as modern home sharing companies continue to grow in popularity. So many travelers are looking for off-the-beaten path experiences, and as an old or historic homeowner you have an amazing opportunity to meet their needs. If you have interest in entering this niche market, the above recommendations will surely come in handy. With hard work and thorough preparation, you will be well on your way to success!
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