How to Start a Paying Guest Accommodation Business

You can earn regular income by operating a paying guest accommodation. This informal sector could develop into a huge business.
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.
paying guest accommodation
Types of Guest
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
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.
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.
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.
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
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.
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
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.
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.
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. Great blog i really like the way you presented this blog. i have similar posts in my blog about the best PG in OMR