The location of the house is very important to its
success. Things to consider are utility bills, waste disposal, maintenance
costs, staff wages and marketing.
Others are fire prevention, transportation, and safety of
your guests. To establish the business you need to study the local government
laws guide the enterprise. Here are a few ideas on how to start a PG
accommodation business
How
to Start a Paying Guest Accommodation Business
Adequate
Space
You need adequate space to run a PG center. The space
should have basic facilities such as electricity, water and sleeping area.
Residential areas are ideal locations especially if your building is
centralized.
The types of guest you accommodate should be short stay
guests. The list includes university students, bachelors, bachelorettes and
tourists. The duration of stay could run from 0ne month, three months, six
months or a year.
- university students
- bachelors
- bachelorettes
- tourists
- office workers
- business person
Legalities
The legalities differ in each country depending on the
number of rooms you rent. If you rent one or two rooms you might not need
operational license.
However a rented space may fall under boarding facility,
motel or hostel certification. There are serious safety concerns, privacy
issues, fire, waste disposal and utility bills.
Any remodeling or construction requires a certified
builders and local government approval. Any business venture requires tax
remittance so get a personal tax identification number.
Terms
and Conditions
Make sure the terms and conditions of occupancy are
clearly displayed. This is to avoid miscommunication, litigation and
misunderstanding.
The terms should be clearly stated in the contractual
agreement between both parties. You could hire a lawyer to draft the agreement
according to your expectations.
Facility
Paying tenants expect certain standards of comfort. The
type of facility depends on the tenancy agreement.
Some facilities provide bed, toilet facilities and shared
kitchen. The furnishing is at your desertion such as television set,
refrigerator, gas and standby generator.
- provide bed
- toilet facilities
- shared kitchen
- furnishing
- television set
- Refrigerator
- Gas and standby generator.
Staff
The number of staff depends on your business template.
The facility could be self service or shared accommodation. Common staffs in
such establishments are caretakers, handymen, cooks and cleaners.
Marketing
Advertise through local publications, online or based on
your target residents. A location within close proximity to a higher
institution should target students.
A tourist town is ideal for international travelers and
tourists. You can target office workers as tenants if your accommodation is in
a commercial district.
Building a website is a valuable tool in your
advertisement campaign. And International travelers satisfied with your
services would spread the word to family and friends. You could use a simple signboard
or use an estate agent to get boarders.
How
to Start PG Accommodation
Leasing out a room or two in your house is profitable.
However there are a few risks, guidelines and challenges.
Paying guest accommodation is huge business worldwide and
almost any house could be turned into a guest house. The house owner converts rooms
for lodgers on weekly, monthly or yearly bases. PG accommodating is not
regulated and falls within a hostel establishment.
Provide
Basic Amenities
The accommodation should have basic amenities such as
single beds, cupboards and television. Others are toilet facility,
refrigerator, kitchenette, fan and furniture.
- single beds
- cupboards
- television
- toilet facility
- refrigerator
- kitchenette
- fan
- furniture
Guest
List
There are many groups of people who prefer PGA
arrangement. The guests include professionals in any field, bachelors and
students of universities or colleges. Others are single women, unmarried men
and travelers.
- Professionals
- Bachelors
- Students
- single women
- unmarried men
- travelers
Permits
By converting your house to PG it becomes a commercial
property. The payments for utilities are estimated at commercial rates.
Common utilities include electricity, water, waste
disposal, and gas. The premises should be registered with the local authorities
as a commercial establishment.
Other provisions are fire safety protocols, standby
generator and property insurance. There are also strict building regulations
and reconstruction permits. You need a health trade license and taxes are paid
for non-residency.
Services
The primary concern with such establishments is security.
The security of the guests should be paramount.
Other services include laundry services, breakfast,
dinner and cleaning services. The landlord needs to clearly state the services
on the terms of service. Make sure you provide the same services for each guest
and list them on a notice board for clarity.
- laundry services
- breakfast
- dinner
- cleaning services
- chauffeur services
Pricing
The business is highly profitable and practitioners smile
to the bank. The pricing depends on the demography, accommodation and services.
The charges are made on monthly bases or per year. Make
sure the rent is competitive and similar to prevailing prices in the market.
Estimate the rent based on square meter of room and services.
Staff
The landlord may need a few staff to provide services.
The staff includes laundry services, security guard and receptionist. Others
are cook, handyman and manager. If your accommodation is self-service then you
need very few staff or on staff.
Marketing
The marketing involves magazine publications and print.
You could build a website or offer your services on hostel accommodation site.
More places to advertise are tourism magazines and free classified websites.
1 comments:
Great blog i really like the way you presented this blog. i have similar posts in my blog about the best PG in OMR
Post a Comment