Renovate and rent out part of your house as a bed and breakfast (B&B).

It seems to be an attractive way to earn extra income from which you can pay the mortgage, for example.

With a mortgage application, it can even be a way to borrow extra.

In practice, not many owners succeed in making a B&B really profitable.

It can certainly provide a good side income, says financial planner Paul van der Kwast.

"There are even people for whom this is a serious part of their family income. Think for example of retirees or people who only work half the time."

With a well-functioning B&B it is also possible to get a higher mortgage, he continues.

"The rental income of a house or apartment before letting it often also counts as income and can lead to a higher permitted loan sum. If the B&B operation takes place in the form of a sole proprietorship, I think this also counts as income and therefore the allowed mortgage. increases."

“People forget that they actually have to charge rental costs to the B&B activities for the use of part of their home.”

Jos Klerx, sector economist Rabobank

Success is the exception rather than the rule

Economist Jos Klerx, sector specialist catering and recreation at Rabobank, sees this too.

A professional bed and breakfast can even get a business mortgage.

"There are certainly examples of B&B owners who manage to set up a very profitable operation that we can finance. I know that in some cases we look at whether we can finance part privately and part commercially."

However, he notes that this is the exception rather than the rule.

For many people, a B&B is something they add for an 'extra'.

"If you calculate everything, you often see that it is not a big deal. For example, people forget that they actually have to charge rental costs for the B&B activities for the use of part of their home."

After all, that part of the house is no longer available for their own use, just like if they would rent it out permanently.

"With those costs, it becomes a limited picture."

Zeeland and agricultural company with B&B most lucrative

So what are those exceptions?

"There are many B&Bs in Zeeland or in other places along the coast and you can see that it can be done," the economist replies.

"Another example is a farm that wants extra income and can convert a barn into a guest house."

The situation that extra space is created in a barn is also the way in which the renovation can lead to an increase in value.

In other cases, it won't be there any time soon, Klerx thinks.

"A buyer will not buy a house because there is a B&B in it. He will still look at it from the perspective that he is going to live there."

'Recovering renovation costs is rare'

Niek Hoogeveen of the tax agency de Taxatheek takes a more nuanced look at this.

"If space is added to an object, so that the object becomes larger, there is a good chance that there will be an increase in value. At the same time, removing 100 percent of the renovation costs does not happen often."

Renovating to realize a B&B can therefore be good for extra income and even a slightly higher yield when sold.

At the same time, this is the exception.

"It all looks very nice on the outside," says Klerx, but he concludes that you don't have to do it purely for profit.

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