HOW TO START A HOMESTAY BUSINESS?
Eight Things You Need to Know to Run a Homestay Business
- WHAT IS A HOMESTAY BUSINESS?
- MERITS OF A HOMESTAY BUSINESS
- HOW TO START A HOMESTAY BUSINESS?
- HOW TO GET THE LICENSE?
- DOCUMENTS REQUIRED FOR APPLYING FOR LICENCE
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Do you own a house with some spare rooms? Does this make you wonder how you can make money from the extra rooms? Homestay is what you are looking for. Homestays contribute 13 percent of the total accommodations of the top travel destinations in around the globe. This shows how good of a business homestay can be. However if this is new to your ears and eyes, we will try to make you understand things related to Homestay via this blog. We will discuss everything from what exactly is a homestay to how to start a homestay business of your own. Stay tuned.
WHAT IS A HOMESTAY BUSINESS?
To put it simply homestay is a form of accommodation in which the host i.e., the owner and his family provides lodging to the visitors in their own home. The room rented out for the visitors is either a spare room in the owner’s home or a quarter nearby. As a host you can either offer meals or can give them a separate kitchen to cook their own food. The concept is somewhat similar to bed and breakfast. The investment cost and labor is low as you already have the space and all you have to do is to renovate it and give it an appreciative look.Â
MERITS OF A HOMESTAY BUSINESS
Choosing a homestay can be a win-win situation for both the host and the visitor. If we talk about the visitors homestay is advantageous to them in following ways:
- They get homely accommodation for a reasonable price.
- When moving to a new city they won’t find it very difficult to adjust if they are living with the locals of that city.
- The visitors get to know the culture of that place in a better way.
- The services offered are not only professional but they are also driven by emotions that gives the visitors a nostalgic feel.
Now before knowing how to start a homestay business I’m sure you must want to know how it will benefit you. So here it is:
- The first and most attractive point according to me is the low investment cost.
- Renovating your house is like hitting two birds with one stone. It will give your house a makeover and at the same time the initials for your startup.
- As the travellers while choosing homestay over hotel look for natural, unfabricated ambience they don’t expect you to give them too much luxury.Â
- Once you get going in this business you will get more visitors and hence greater profits wait for you.
HOW TO START A HOMESTAY BUSINESS?
To start a homestay business you have to keep a few things in your mind and the most important of them all is the license. We shall talk about the license in detail later in this blog. But before that I’ve prepared a 8 step guide on how to start a homestay business.
Step 1: Give your spare rooms an aesthetic makeover. Don’t overdo it. Sophistication is what we are looking for here.
Step 2: Get your homestay registered with the ministry of tourism. You will get a license after that. Now you are ready to roll.
Step 3: Make sure to register yourself with some popular websites providing info about homestays to the travellers. This will get you your first customers.
Step 4: Basic amenities like- good internet connection, clear drinking water, good electricity supply, clean and hygienic room and toilet, facility of proper disposal of garbage and other should be included in your homestay.
Step 5:Â Charge reasonable fees, make your homestay venture affordable, provide itemized billing system guarantees cost clarity, charging only for chosen services. Experience a budget-friendly journey into starting your homestay business with confidence and ease.
Step 6: Ask the visitors to give honest feedback.
Step 7: Follow up with the feedback and make changes in your homestay accordingly.
Step 8: Do promotions on social media and other platforms. Click eye catchy pictures of the homestay and post it.Â
HOW TO GET THE LICENSE?
- The Ministry of Tourism is the legal authority for the homestay business. It classifies the homestay establishments as gold or silver. In some states a third category, diamond is also there. The classification is based on the services and accommodation you offer.
- The Regional Classification Committee checks the services and facilities.
- Once approved by the Ministry of Tourism, a short term training on hospitality is also patronised.
- The owner has to reside with his family in the same establishment to get the license.
- There are certain set standards that the host has to follow. If not then the ministry is allowed to take any action, cancellation of classification included.
- If you make any changes in the facilities then you should inform the ministry within 30 days.
- After all this the owner gets a recognition certificate.
DOCUMENTS REQUIRED FOR APPLYING FOR LICENCE
- Proof of ownership or lease of the building.
- Location plan that shows access to the building from the major roads.
- Plan and elevation of the establishment.
- The photographs of the building including the interiors.
- Police Clearance Certificate.
- Permission from the local authority.
CONCLUSION
I hope through this I was able to answer how to start a homestay business. Homestay business can be a great option if you own a big house and have fewer family members residing in that house. With low investment cost and good remuneration this is certainly a lucrative startup. Another merit of this is that you don’t have to leave your home to make money. Instead you are making money from your home.
ALSO READ:Â What is Homestay | All About Homestay Business
FAQs
Q. WHO CAN APPLY FOR A LICENSE?
A. Both an individual or a family.
Q. WHAT IS THE MINIMUM AND MAXIMUM NUMBER OF SPARE ROOMS FOR THE ACCOMODATION?
A. Minimum 2 rooms and maximum 5 rooms.
Q. DO THE FAMILY HAVE TO RESIDE WITH THE OWNER?
A. Yes, it is mandatory for the family to reside with the owner in the same establishment.
Q. CAN ONE GET THE LICENSE EVEN IF HE DOESN’T SPEAKS ENGLISH?
A. One of the family members should know English.
I hope this guide has inspired you to start designing your ideal homestay. Whether you’re planning a small space or a larger layout, the possibilities are endless with the right approach and a touch of creativity.
If you have questions, ideas, or need more guidance, I’d love to hear from you!
Drop a comment below to share your thoughts or ask for advice—I’m here to help.
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Same formalities to get licence and approval goes for airbnb also? If Im hosting one of my flat in Airbnb then still I need all this licence and clearance?
Another query is you have written under PROOFS REQUIRED FOR APPLYING LICENCE –
That permission from local authority. (Can you tell who or which department?) And is it necessary if I have a clearance certificate from police. Please help me with this query!
Thanks a lot.