Small house hostel

Backpackers, solo travelers, hikers, cyclists, students and budget-minded visitors, plus some international guests visiting for a few nights.

Nightly price per bed, with higher rates for private rooms. Extras such as breakfast, laundry, bike rental or local tours can add a little. Income rises and falls with the season and your location.

• Welcoming and good with people from many backgrounds
• Organized with bookings and cleaning schedules
• Handy with basic repairs
• Calm when handling guest problems

• Zoning and occupancy rules: many areas treat a hostel differently from a short-term rental or home, so check with your city or county
• Lodging or hotel license, fire safety, egress and inspection requirements, which differ by state and city
• Lodging or occupancy taxes and sales tax registration with your state and local government
• General liability and property insurance that covers paying overnight guests (ask brokers about hostels specifically)
• Landlord permission and lease terms for lodging use
• Seasonal gaps in bookings, so plan cash for slow months

Startup costs are typically around $25,000 to $100,000, depending on the property, how you furnish the beds and shared spaces, and what upgrades the building needs. These are estimates, so confirm with your own quotes.

Monthly revenue is typically around $4,000 to $20,000, depending on bed count, nightly rates and occupancy. Bookings can be seasonal, so plan cash for slow months. Expect to put in at least about 30 hours a week.

Check zoning and occupancy rules with your city or county, since many areas treat hostels differently from short-term rentals. Also check lodging licenses, fire safety and inspections, lodging and sales taxes, insurance for overnight guests, and your landlord's permission.