Small bed and breakfast or guesthouse

Couples on getaways, travelers touring a region, wedding guests and visitors to nearby attractions.

Nightly room rates that usually include breakfast. Extras can include packages, gift certificates or hosting small events.

• Hospitality and welcoming guests
• Cooking breakfast at a steady standard
• Managing bookings, cleaning and budgets

• Zoning, lodging licenses and fire safety inspections vary by city, county and state
• Startup costs depend heavily on property: converting a home you already own is far cheaper than buying or leasing a property, and fire-safety, accessibility or building upgrades can add significant cost
• A health department permit may be required to serve food to guests
• Commercial property or innkeeper insurance and general liability coverage are usually needed
• Occupancy taxes and sales tax registration may apply
• Seasonal demand can make cash flow uneven, and you may be tied to the property most days

Startup costs are typically around $30,000 to $150,000, depending heavily on the property. Converting a home you already own is far cheaper than buying or leasing, and fire-safety, accessibility or building upgrades can add significant cost.

Monthly revenue is an estimate of typically around $3,000 to $12,000, depending on how many rooms you offer, your pricing and your bookings. Seasonal demand can make cash flow uneven, so plan ahead for quieter months.

Check zoning, lodging licenses and fire safety inspections, which vary by city, county and state. A health department permit may be required to serve food. Also check insurance, occupancy taxes and sales tax registration.