B3 - Bed and Breakfast
A bed and breakfast (B&B) or 'homestay' is a business that offers accommodation, generally with at least a breakfast meal, to paying guests.
Pros
- Hosting people at your home could be a good way of earning some additional income.
- You'll meet interesting people from all over the world.
Cons
- You'll need to buy extra goods (including bedding and food) and may need to do renovations to ensure your property is up to an appropriate standard to host visitors.
- You will need to comply with the laws and regulations for businesses that host visitors, even if you let a bedroom through a website such as www.airbnb.co.nz.
- You'll need to be present or arrange for someone to be present to host visitors whenever they are booked.
What do I need in order to take this option?
- Your home must be big enough to accommodate extra people on a temporary basis.
- You must comply with laws and regulations as a business that hosts visitors.
- You'll need the skills to be able to set up and run a business.
Could this option limit my future choices?
No, but your own travel and other activities might be restricted if you need to be present to deal with visitor bookings, arrivals and ongoing requirements.
Homework
Think about how you feel about having strangers in your home.
Running an accommodation business requires you to deal with a number of technical issues:
- Legal requirements - these include meeting fire, health and safety, food and building regulations, consumer / fair trading legislation and local council requirements (including a possible variation in rates for changing the purpose of your home)
- Insurance
- Publicity and bookings processes
- Tax - including GST registration.
For more information
- The Bed and Breakfast Association of New Zealand. See: bandbassociation.co.nz.
- Your local council for any regulations relating to running a bed and breakfast; whether you need a consent to conduct this business; and any rates implications.
- Inland Revenue for tax information. See: www.ird.govt.nz
- Citizens Advice Bureau (CAB) offers advice about starting a small business. See: www.cab.org.nz