Many of the areas where there are legal aspects to running a B&B are covered in separate articles in this section, such as insurance and liability, the business structure and health and safety. There are other areas where you need to stay abreast of the law and those are covered here.
Our Advice – Put Solid Terms and Conditions in Place
It's important to make sure that guests are aware of your terms and conditions surrounding bookings. Decide on a policy for deposits and whether they can be returned, probably not if a guest cancels within a fortnight of their arrival, ten per cent if they cancel three months before, and a range of figures in between these too. If a guest cancels the week before and you only took a ten percent deposit, then you will need to persuade them to pay the rest.
Legally you're on very strong ground here on paper, particularly if you posted your terms and conditions to them once the booking was made. The reality is that if they don't pay then you would have to take legal action to get the money back. Always take legal advice before doing this but it is likely that it will come down to whether or not you think it's worth the time and aggravation to get the money back, which is basically a business decision. If it's going to get in the way of running a successful business then it may be wiser to back down and write off the loss.
Estimate what a bed and breakfast could earn: turn your room count, nightly rate and occupancy into projected annual revenue, running costs and take-home profit.
Try our B&B Income & Profit Estimator free, here on this site →Guests Behaving Badly or Running Off
If guests behave badly then you may have to call the police to eject them. Obviously it's best to try and sort it out before it get's to this point, but if that doesn't work, you will have to call the police, that's the only legal recourse that you have. Try and keep the action discreet and away from other guests if possible.
If guests have caused damage to the room or facilities, or perhaps run off without paying, and you cannot get them to repay you, then again the legal advice will be to sue. Consider first whether taking legal action might get in the way of running a B&B or perhaps might damage your reputation. Weigh up the time and money aspect against the cost to the business of the damage before proceeding.
Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.
Aspects of Small Claims
If the advice you receive is that you should sue to get your money back, for relatively low amounts (currently under £5,000), a claim can be pursued through the small claims court. Details of this can be found on government websites.
It can be done without legal advice as the process is fairly simple, but it might still be worth taking that advice to make sure you're on solid ground before submitting a claim. The legal advice may also allow you to claim back more in damages than you had considered possible as they will know the system better than you.
Ensure Customers Understand Your Terms
The main thing to remember with anything like this is that you must have made the situation completely clear to whoever it is who is causing the problem. So make sure that people who answer the phone and take bookings are aware of things they must say before taking the booking and follow up with copies of your terms and conditions in writing.
For behaviour, make sure there is an acceptable behaviour policy on display somewhere, perhaps on the wall of the room with the fire regulation notices, or in a small booklet in the room along with other information. It's not a good idea to draw attention to a long list of rules and regulations but make sure people are aware without pushing it in their faces and you should be covered.
I would also like to see pressure on the government to reduce the VAT threshhold. It currently stands at around 86,000 which is crazy. My B&B has 7 letting rooms and there are other B&BS in the area with more rooms and a higher occupancy and stay under the threshhold. This is really annoying.
For anybody out there looking to start up in the B&B trade, here is some advice.... think long and hard about it, do your homework, run a B&B for a week, stay in as many B&Bs as possible, think very hard about it again and then think about doing something else. :-)
If nobody booked that room they would still be out of pocket.
We are both 78 years of age, and find this a blow against OAP's.
Desmon Francis
I run a B& B in the Midlands and the local council wish to charge over £1000 per room as I have had long term guests staying with me could you let me know what the ruling is over length of stay please
thanks
Also, our neighbour may not be too happy with this and although we will put in place strict controls over noise, time of arrival and departure of guests, etc I anticipate there will be some objections. We live in a small village and think this would bring visitors and extra money into the community, something which is needed for the village to thrive. If issues such as noise, etc are resolved I assume an objection from one person would not mean we cannot proceed at all but I would be grateful for any experience or advice in this matter. Talking to our neighbour prior to applying for change of use is unfortunately not an option.....
Thanks !!
We are planning to do b&b only with 2 bedrooms. In our 4 bed house. Do we need permission. I already have insurance.
Many thanks
regards
Julie
I own a residential property (through Nationwide) which has 6 rooms, we have lived in in for 3 months now. Our neighbours have a bed and breakfast and my wife would love to do the same with 4 of the rooms. I contacted Stratford Town planning and they said we would have to apply for change of use (they think this won't be a problem) but I contacted Nationwide and they said they don't do commercial mortgages. When I checked out commercial mortgages some lenders require 30% and higher. Does this mean we can't do it? We have no additional funds for a larger deposit.
Kind regards,
Adrian
We are looking at running a B&B in the next year or two in Scotland; probably Perthshire, Argyll or Aberdeenshire. We are currently in Australia but my wife is a British Citizen and my Father's side is as well. I understand we need to look into the local provisions and policies of each local government area but was wondering if there are any licences required through the Scottish or central government?
regards
Glenn
I have a problem with parking, although I think this can be resolved.
But can anyone tell me how many parking spaces I would require for 3 bedrooms, although to start I will possibly only want to rent out 2.
I have been told it's 1 car per 10 beds ? This seems wrong - anybody have an answer for this.
I am near Dover in village.
Regards,
Mark.
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