{"id":2613,"date":"2021-07-14T08:13:49","date_gmt":"2021-07-14T08:13:49","guid":{"rendered":"https:\/\/www.yopa.co.uk\/homeowners-hub\/?p=2613"},"modified":"2021-07-14T08:13:50","modified_gmt":"2021-07-14T08:13:50","slug":"a-short-guide-to-buying-a-bb","status":"publish","type":"post","link":"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/a-short-guide-to-buying-a-bb\/","title":{"rendered":"A short guide to buying a B&B"},"content":{"rendered":"\n

In the wake of\nthe Covid-19 pandemic, more of us than ever are reconsidering where and how we\nlive. Indeed, according to the Office for National Statistics<\/a> and Savills, recent trends in the\nhousing market have shown that average house\nprices<\/a> in rural areas\nhave risen more than elsewhere in the UK since March 2020 and the popularity of\nlarger, detached homes has also increased. <\/p>\n\n\n\n

If you are a\npeople person and fancy a career overhaul with more flexible hours and the\noption to work from home permanently, one way to offset the higher mortgage costs\nof a larger property is to rent out accommodation in said property in the form\nof a guest house or bed and breakfast. With the rise in popularity of the\nstaycation showing no signs of abating in recent months, now is certainly a\ngood time to let your home work for you. \n  <\/p>\n\n\n\n

An added\nincentive is the Rent-a-Room scheme<\/a>, which allows anyone offering bed and\nbreakfast accommodation in the UK in their own home to earn up to \u00a37,500 a year\n(\u00a33,750 per person if you jointly own the property) without paying any tax on\nthe income. <\/p>\n\n\n\n

So, how to do\nyou actually go about buying a bed and breakfast property in the UK? <\/p>\n\n\n\n

Our frequently\nasked questions below provide the low down. <\/p>\n\n\n\n

Can I rent out any property as a\nB&B? <\/strong><\/h3>\n\n\n\n

Before you purchase\na property to run as a B&B you will need to ensure that you are adhering to\nall of the necessary legal requirements.<\/p>\n\n\n\n

Your first port\nof call is the local council<\/a> to see if you need to apply for \u201cchange of use<\/a>\u201d from residential to commercial, or a\nmix of the two. Even if you are not undertaking any building work you may still\nneed to seek planning permission depending on how many rooms you are renting\nout and what percentage of the property is being used by your guests. Handily,\nthis permission can be applied for before the sale of the property goes through\nand can be considered a condition of sale. <\/p>\n\n\n\n

If you are\nplanning to buy a property to run as a B&B in Northern Ireland, tourism legislation\nalso requires that all tourism\/visitor accommodation holds a current Tourism Northern Ireland (NI)\ncertificate<\/a> which is\nvalid for 4 years. <\/p>\n\n\n\n

Throughout the\nUK, you will also need to ensure that both you and the property adhere to the\nrelevant health and safety legislation<\/a> regardless of how many rooms or the amount\nof space you rent out and that you have carried out a Fire Risk Assessment and\nhave an up to date Gas Safety Certificate. <\/p>\n\n\n\n

When it comes\nto finances, you may need to seek a commercial mortgage rather than a normal\nresidential mortgage depending on the size of the property and how much of the\nspace is used for the commercial enterprise and how much is used as personal\nliving space by the host. As a general rule of thumb, if more than 40% of the\nspace is for private residential use then you can still apply for a residential\nmortgage, otherwise you will need to apply for a commercial mortgage. It can be\ntricky to quantify the delineation of space when the property is mixed use and\nthere is also the option of a semi-commercial mortgage in this instance. A\nmortgage broker will be able to advise on the best mortgage to seek for your\nspecific circumstances. <\/p>\n\n\n

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In the same\nvein, you may also need to switch your home insurance policy to a business\npolicy, but this may not always be the case for smaller B&Bs. However,\npublic liability insurance is always useful whatever the size of the property\nto cover guests and any employees you may have.   <\/p>\n\n\n\n

Do I need\nany formal qualifications to open a B&B? \n<\/strong><\/h3>\n\n\n\n

Whilst you\ndon\u2019t need official qualifications to set up a B&B, you may need to\nundertake further training to ensure you are compliant with the legislation for\ntourist accommodation in the UK.<\/p>\n\n\n\n

If you will be\noffering inhouse catering options for instance, as most bed and breakfasts\ntraditionally do (hence the name), you will need to ensure that you are\nregistered with your local council\u2019s\nenvironmental health department and comply with the relevant food hygiene and\nfood safety standards. The Food Standards Agency<\/a> provides more information on your legal\nrequirements and training opportunities. <\/p>\n\n\n\n

There are also\na huge range of short courses aimed specifically at those wishing to set up a B&B\nbusiness alongside general courses for marketing your business, book-keeping or\nhow to run a self-employed or limited company which may be helpful depending on\nyour existing experience. <\/p>\n\n\n\n

Organisations\nlike the Visit Britain Tourism Board<\/a> and the Bed\n& Breakfast Association<\/a>\n\u2013 the UK trade association for B&Bs and Guest Houses \u2013 provide more information\non current legislation, training courses and useful industry specific updates\nand advice.<\/p>\n\n\n\n

How much\ntime will I need to dedicate to the B&B business? <\/strong><\/h3>\n\n\n\n

Before you\nthrow open the doors to your guests you will need to decide how much time you\ncan realistically dedicate to the venture and whether you want to be tied to\nthe business 24\/7. If you have existing commitments, it may be that you need to\nemploy additional staff such as cleaners or chefs which will then have an\nimpact on your overall profit margin, not to mention requiring HR responsibilities\nin terms of hiring, training and payroll. \n<\/p>\n\n\n\n

How do I\nchoose a B&B property?<\/strong><\/h3>\n\n\n\n

When it comes\nto deciding on a property to buy to accommodate your new B&B business, it\nis important to consider the following areas before you sign on the dotted\nline. <\/p>\n\n\n\n