mail-box-lead-generation

written by | October 11, 2021

How to Revamp Your Home for a Homestay Business?

×

Table of Content


Homestays have always been popular in tourist destinations. Homestays provide a warm and welcoming environment to travellers, as they are away from home. Usually, a homestay business is run by house owners with extra space or a room. House owners make this space a hospitable stay for guests and charge a specific amount of money. So, if you are a house owner with an extra room or area in your home, this article will help you monetise that extra space into a homestay business.

Did you know?

India still needs 2.5 million homestay businesses according to a survey in the year 2020. 

Here are 6 Ways to Monetise Your House for a Homestay Business

What is a Homestay Business?

Homestay business is different from a regular hotel or hostel. It's where a resident of a town or city chooses to rent out a spare bedroom or space in their homes and monetise it. Tourists who are travelling from various regions get to enjoy a glimpse of the culture and hospitality of the area by staying there. Homestays are unique since they offer scenic locations, bed and breakfast, and a realistic view of the everyday life of that region. Many homestays have a lower carbon footprint, and for this reason, they are perfect for those travelling solo and even family trips. 

Also Read: Top Work from Home Business Ideas for Homemakers

Documents You Need for Starting Your Homestay Business

Before you get to work on your homestay business plan and start making an income, you have to submit the following documents to authorities:

  • Proof of ownership of homestay.
  • Your homestay plan proposal.
  • Police Clearance Certificate.
  • Photographs of your property from different angles, including interiors.
  • Plan and elevation data of the building.
  • A location plan to show how the roads connect to the building and what nearby amenities the homestay has access to.

Risks Involved in Running a Homestay Business

No homestay business is perfect, and you have to prepare yourself for every possible outcome. There may be times when guests damage your property, and you'll have to levy additional expenses. Good internet access is essential for your guests, but if your homestay is located in a remote area, get a dependable internet portal. It's recommended to partner with a reputed internet service provider and ensure that the connection doesn't break.

Another challenge is getting fake reviews on your website, Google, and social media pages. Your competitors might not like your revenue growth and post fake content about you. Social media drama is not uncommon, and sometimes, even customers may leave nasty remarks. If you kicked a customer out because of unruly behaviour, they might leave bad reviews about your business and spread rumours online. You cannot control these things, and there's simply not enough time to do that. When marketing your homestay online, you have to post high-quality images and videos to attract your customers. Most of them are active on Instagram and Facebook, so you'll risk missing out if you're not active on these platforms. 

How to Start a Homestay Business?

1. Space

Suppose you have a large space, even better. You need a spare room in your apartment or villa to be rented out to guests. Some homestay businesses follow a simple model where the landlord rents out the living room or a bedroom with an attached bath. At the same time, others can be lavish and rent out a whole floor or house to guests.

2. Licensing 

Every homestay business has to acquire the appropriate licences from the state to rent or lease out their premises. For this, you will need to submit an application form to the tourism department of your region with all the necessary documents. For these licences to be granted, some standards have to be met, such as essential amenities, room dimensions, safety measures, etc. If the property doesn't belong to you and is rented, the landlord of the homestay has to be informed before making the homestay application. 

3. Customer Service

Your customers will make a big difference in whether or not you get future clients for your homestay business. Please pay attention to their reviews and feedback and focus on improving your overall customer service. You can't be perfect like hotels and restaurants. Still, common areas you can improve on are resources such as providing high-speed internet, clean drinking water, and a peaceful low-noise environment to guests. If you don't have a lift in your residence, be honest and let your guests know beforehand. It's the little things that matter.

4. Precautions

You should inform guests if certain things are not allowed on your premises. Unruly or violent guests can wreck your homestay's reputation if you are not careful. There's a possibility they could damage your property or assets, especially guests who get drunk too often or have an alcohol addiction. Be clear about your boundaries and what's acceptable regarding behaviour. The best guests for your homestay business are usually small families and couples backpacking in that region. 

5. Hygiene

Make sure your homestay's upkeep is done well. A homestay business without well-maintained hygiene is just like a cheap hotel room. Your rooms should be regularly cleaned and organised. Put sanitisers in every room and make sure your wardrobes and other essentials are organised. Don't neglect fire safety and authorities usually lay down hygiene standards. If your homestay is located in a remote area, you can provide travel services or let guests rent vehicles so they can explore the surroundings comfortably. 

6. Additional Services

You can provide additional services to your guests for a better customer experience. Some activities guests might enjoy are growing organic vegetables and fruits, visiting nearby aquariums and exploring the nearby surroundings. You can offer to take guests on hiking, trekking, or birdwatching on the weekends to switch things up. If your guests are interested in learning a foreign language or want a culture trip, you can provide them with that at an additional cost. The goal of any homestay business is to make them feel like members of an extended family.  

Also Read: Best Part-Time Business Ideas to Supplement Your Earnings

How to Market Your Homestay Business?

Building an online presence is very important for your homestay business since it'll help you to attract more clients. When it comes to your marketing strategy, focus on the best features of your homestay. What amenities and offers do you bring to guests that excite them? Maybe there's a swimming pool in your residence, indoor games arena, special outdoor activities, etc. You can list out the perks of staying in your home, such as exploring nearby surroundings and talking about the location, too.

Make guests want to visit your place and stay there by taking attractive pictures from different vantage points. Post them online on your website and other homestay platforms. 

If you choose to advertise your homestay business on tourism portals or websites, you might have to pay a commission fee. However, this is worth it since you can get more engagement and draw in more customers from those sources. Be sure to list out the prices and don't fail to mention any restrictions such as no drinking, smoking, pets allowed, etc.

Conclusion

Homestay business can be a part of your side hustle to grow your finances. Now that you have understood everything about it, get started. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: How should I price my homestay accommodations?

Ans:

To get an idea on how to price your accommodations, keep a record of your income and expenditure from the establishment for the initial prices. Once you host guests and see how much money is earned or spent, you can decide how much to charge for your services. Also, please do thorough market research on other homestays and see how much they are charging in your area to get an idea about the pricing of your rooms.

Q: How much does it cost to build a homestay business?

Ans:

It depends on the square feet area, location, and amenities you will be providing. If you don't have your property and are building from scratch, it can cost you anywhere from ₹10 to ₹20 lacs. Some homestay business owners invest up to ₹2 crores to get started and profit from them.

Q: Do I have to pay taxes for running my homestay business?

Ans:

Homestays fall under private or domestic establishments, which means you won't be facing any taxation implications from the government. It's not like commercial businesses such as hotels and restaurants. Homestays are more similar to inviting students or travellers to your residence and letting them live for some time.

Q: How do I provide better customer service for my homestay business?

Ans:

No homestay is perfect, and it is essential to realise this. Being honest and transparent is the first step. Sell your features and let your guests know what you cannot provide. After that, they can make an educated decision and decide if they want to stay or not.

Q: Which location is a popular choice for homestays in India?

Ans:

Himachal Pradesh is a great hotspot for tourists in India. It's an excellent location for starting a homestay business. If you are looking for other recommendations where the cost of setting up is cheap, they would be North Bengal and Kerala.

Q: Is the homestay business profitable in India?

Ans:

Hotel businesses are profitable, but homestays are also churning out a good income in India. It's not just because of the extra space but the personalised living experiences these places provide. Smart entrepreneurs say that homestays are a low-cost and viable business investment. You don't need a huge investment to start your homestay business.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.