Start an owner-run guest house with several rooms

Tourists and holidaymakers, couples on short breaks, business travellers, and visitors for weddings, sport and local events.

Nightly room rates, with higher prices in peak season, plus extras such as breakfast upgrades, packed lunches, or direct booking deals for longer stays.

• Hospitality and guest service
• Budgeting and pricing rooms
• Managing and rostering casual staff
• Marketing and online reviews

• Planning, zoning and building approvals for accommodation, which vary by council and state
• Fire safety, building classification and accessibility requirements, check with your council and state authority
• Food business registration with your local council for serving breakfast
• Public liability, property and business interruption insurance, plus workers compensation once you hire
• Staff pay under the relevant award, check with the Fair Work Ombudsman
• Seasonal demand and high fixed costs such as loan repayments, rates and utilities
• Whether a liquor licence is needed if you plan to serve alcohol, check your state's licensing body

Startup costs are estimated at typically around $150,000 to $800,000, depending on whether you buy or lease, the condition of the property and how many rooms you fit out. Check what lenders will accept before committing.

Estimates suggest monthly revenue of typically around $8,000 to $35,000, depending on room numbers, pricing and the season. Demand is seasonal and fixed costs such as loan repayments, rates and utilities are high, so revenue is not profit.

Things to check include planning, zoning and building approvals (which vary by council and state), fire safety and accessibility requirements, food business registration with your council for serving breakfast, insurance, staff awards, and whether you need a liquor licence.