Running a B&B – Access Commercial Mortgages LtdWhen running a B&B, finding the right clientele for your particular property is essential if your business is to be successful.
The first decision is whether you are aiming to attract guests at the budget end of the market or guests looking for more luxurious accommodation.
Some budget B&Bs cater for people referred and paid for by the Department of Social Security (DSS). While this would not be the preferred choice for most B&B owners, it is obviously an option.
Most B&Bs cater for budget travellers. Whether travelling on business or for pleasure, many people simply look for a conveniently located property offering efficient personal service and value for money accommodation. This is exactly what should be expected from a well run B&B.
In tourist ‘hot spots’ such as the Lake District and cities like Bath and Edinburgh, there is an increasing demand for top of the range B&B accommodation. Many guests have become disillusioned with impersonal, overpriced hotels and are turning instead to high quality, ‘characterful’ B&Bs. Many of these establishments are setting up websites, as a low cost method of advertising and showing potential guests exactly what they have to offer.
B&B Tax BenefitsBecause a B&B proprietor is living on the business premises, some ‘blurring’ can occur between what is bought for business and what is bought for personal use. HM Revenue and Customs will be aware of many potential abuses so, if in doubt, B&B owners should tread carefully.
Unlike a buy to let property where the rent received is categorised as investment (i.e. unearned) income, proceeds from a B&B business are categorised as earned income. Overhead costs such as repairs, refurbishment and maintenance expenses as well as loan interest repayments can be offset against tax, making a B&B a remarkably tax efficient enterprise, if managed carefully.
Summary Decide upon the types of guest you are trying to attract and market your B&B accordingly;
B&Bs offer certain tax advantages to owner-occupiers because they are classed as business premises.
AccessCommercialMortgages Ltd can help with all types of B&B mortgages;
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Bed and Breakfast buying resources: Advice on Running a B&B Advice on starting a Bed and Breakfast business B & B Rules and Regulations See Also:Bed and Breakfast MortgagePurchasing a B&B
