How our clients Mary & Derek started with their spare room and turned it into a very profitable income. 

How this Couple Turned Their Spare Room into a Thriving Bed and Breakfast Business…

In today’s economy, more and more people are finding innovative ways to generate income and invest in properties that can provide financial security. For one entrepreneurial couple, a spare room in their home sparked a journey that led them to owning multiple properties and building a thriving bed and breakfast business that changed their lives, now runs itself and gives them disposable income to follow their dreams travelling the world.

Let’s dive into how this couple turned their humble spare room into a success story we can learn from.

The Spark: An Idea in a Spare Room

It all began with a single, unused room. Mary and Derek Thompson were living in a charming home in a suburban area with a beautiful but underutilized guest bedroom/storage room. They both had full-time jobs, Mary worked in a shop, and Derek was a engineer – but they were feeling the constraints of a traditional 9-to-5 lifestyle. They longed for the flexibility of running their own business, something that could provide both personal fulfilment & financial freedom.

One evening, after a particularly tiring week of work, they were talking about ways they could generate passive income. Mary had recently read an article about Airbnb and how ordinary people were renting out their extra rooms to travellers. It got them thinking: “Why not rent out our guest room?”. After reluctant discussions with their children who had previously stored stuff and even stayed in the room occasionally when visiting, the kids instantly explained that those days were gone, they really weren’t interested in it anymore and their parents were silly to even consider them, when they could earn a little extra from it.

The Leap: Turning the Spare Room into a B&B

It seemed like a small step at first, but they quickly realized the potential. They didn’t just want to rent out a room; they wanted to create an experience. So, they transformed their spare bedroom into a cozy, inviting space, complete with high-end bedding, artisanal coffee, a local guidebook, and personalized touches like fresh flowers and snacks.

They also realized that to stand out, they needed to offer something special that would attract visitors. Their home was situated in a prime location, just a short distance from a popular local park and some trendy downtown eateries. This was their angle: providing guests with not just a place to sleep but a complete, memorable experience. The couple took the time to understand the needs of travelers, offering recommendations on things to do, unique local spots, and even partnering with a few nearby businesses they were friends with for discounts for their guests.

Key Elements of Their Transformation: 

• Interior Design & Ambiance: They invested in simple but stylish décor. Modern yet cozy, making sure the room felt like a luxury home away from home.
  
  
• Guest Experience: They curated a personalized guest experience, including offering a continental breakfast with homemade breads, crumpets, fresh fruit, and freshly ground organic coffee.
  
  
• Technology: They set up an account on Airbnb hoping this would be sufficient to get it booked the majority of the year round.
  
  
• Local Partnerships: They spoke to local tour guides, restaurants, and transportation services regarding offers for their guests.
  
  

Hopes: An Educated Gamble

When they listed their room on Airbnb they studied their local competitors and were quietly confident that they could create a small niche for themselves. However upon launch they realised that it took a bit more effort and money to cater for the few guests they received – and yet Airbnb was taking most of that profit, so this was of course very disheartening.

The Early Days: Gaining Momentum

At the start business was slow, they were only renting out the room on weekends, with the occasional mid-week booking. But slowly, the reviews began to pour in. Guests raved about the cozy room, the thoughtful amenities, and the personal touch Mary and Derek offered.

As their reputation grew, so did their confidence. Mary and Derek realized they had created something truly special and their concept was working – a side hustle that had a lot of potential if only it improved their income. They raised their prices a bit to allow for that profit and all of a sudden the bookings almost stopped! They put them back up after a few months and received a few more bookings, but this delay had caused a knock-back effect from missing the people that book in advance. They then lowered their prices to a little under what they originally charged, but quickly realised that now they had even less than the little profit they had before – whilst trying to supply such a good service.

The Dilemma: Should I stay or should I go now.

The lovely couple sat down one weekend and put their cards on the table regarding personal thoughts about the pro’s and Con’s of the whole thing. It was then that they realized that if they could just keep the profit (that was going to Airbnb) they would be more than happy, but of course Airbnb isn’t going to do it for free and the other similar websites out there such as Booking.com etc. are just going to take the same. 

They pondered as to whether they could advertise themselves using as many free resources as possible and wrote up a list of them. The list included Wix for a free website, Facebook for advertising and Googled for free software to run the books etc. 

This progress started to “regenerate the goosebumps again” (their words not ours) in that they should achieve a nice profit as soon as they are done setting it all up.

Wix.com

A Wix free website is a basic, ad-supported website you have to build yourself using their tools and then host on their platform. 

Problem: The issue that the couple didn’t know, was that these free web hosts are proprietary, closed systems that traps users with bloated code, making migration difficult and preventing true website ownership, alongside issues with slow mobile performance, limited advanced SEO/customization, template lock-in, and eventual high costs for advanced features or necessary upgrades, making it less suitable for serious, scalable business growth compared to open or dedicated platforms such as ours here at Guest Income. 

Results: After two months of trying to build the best site they could (and it certainly looked great) – the website had little to no unique or targeted visitors, deeming it useless (so not even one booking).

Facebook

So, FB boasts that it is “the world’s largest social network” and on paper it is by a significant margin, with over 3 billion monthly active users. Furthermore the couple already had made a Facebook page and it even had a handful of likes, followers etc. they had even written some posts previously that people seemed to like, so this should be a breeze. 

Problem: The issue that the couple didn’t know, is Facebook’s ineffective free platform renders organic posts a waste of time (due to a deliberate algorithm that significantly limits audience reach for business pages & forcing a “pay-to-play” system), meaning nobody useful will ever see the posts, let alone contact for a room (unless they pay for advertising – but they were supposed to be building this all manually without outlay – especially considering the fortunes Facebook requires).

Results: After two months of trying to create the best posts they could (and they certainly looked great) – Facebook brought them had little to no unique or targeted visitors, deeming it useless (so not even one booking).

Free Software

We all know the internet is full of companies demonstrating why their free software will transform your life – and of course it shouldn’t need a rocket scientist anyway, for software to manage a few client bookings. On top of this, Mary was already familiar with digital management platforms at her work and Derek was more than capable on a PC for many years.

Problem: The issue that the couple didn’t know is that free management software can be considered outdated or “bad” due to a combination of security vulnerabilities, lack of professional support, limited features, and poor operational efficiency compared to modern, often paid, alternatives. 

Again, money, money, money! More than often you have to often try many companies and different methods/products before you find one that suits… and even then it can become obsolete at any minute. Hey, we ourselves here (compiled of many professionals) have purchased “live-long” subscriptions to things that later disappear (with no compensation or alternatives). Aside from many gym memberships, AAirpass & Ansett lifelong flight travel,

Quibi, BulletVPN, oooh even TiVo offered a “lifetime service” for a one-time fee, but it was for the lifetime of the specific hardware box, not the customer’s lifetime. Printed Encyclopedias… Phonebooks… the list goes on. All paid by the consumer for something that never worked later.

Ultimate Solution: Do I have a choice?

Yes, Mary & Derek contacted us and we explained that they indeed had a choice, rather than relying on others, get your own sustainable solution. We supplied them a basic package that included everything needed to rise above the rest. 

Success!!!l

All of a sudden, Mary & Derek were not only renting out the room just on weekends and keeping 100% of the money (we would not know if they pay taxes and nor was it any of our business hehe), but they were fully booked and very quickly looking to purchase another property nearby, where they could exploit this new found knowledge, abuse space and go for it! 

Scaling the Business: Expanding into Multiple Properties

So, now their spare room business was very profitable, the Thompsons started thinking bigger. They saw the potential for growth and diversification and they knew it was time to expand. With the success of their bed and breakfast operation, they could afford to buy a perfect house in the area. They immediately saw this was working and purchased a third house, which they transformed… then the sky was the limit.

The couple used the same formula: great décor, an immersive local experience, and top-notch service and our proven platform. These further properties were all rented using the same concept, and just like the first, they gained a steady stream of positive reviews to fill them, whilst these places acted as a backup surplus place when fully booked in others. As demand for their B&B’s grew, so did their ambitions. They realized they could scale up even more by adding a small hotel in a different part of the city, this has 18 rooms and a large revenue.

Quite simply, they funded all of these purchases using the money originally generated from their first B&B, which was not even proving successful before we supplied them with our platform. They turned to real estate investors in a short matter of time, who saw potential in their growing business model. Over time, they diversified their property portfolio, moving beyond just single-family homes to include duplexes, townhouses, and even a couple of small apartment buildings and even a few properties abroad.

The Business Model: Diversification and Sustainable Growth

Mary and Derek primarily adopted a hybrid business model, where they both rented out short-term vacation properties and longer-term stays for business travelers who needed accommodations for several weeks at a time. This flexibility helped smooth out the peaks and valleys of the vacation rental market. 

They also diversified the other types of properties they purchased. Some were in more central locations, appealing to tourists, while others were in quieter neighborhoods, catering to remote workers or those attending business conferences. The flexibility of their properties allowed them to generate multiple streams of income, catering to different types of travelers, we believe (through our own analytics) that this was one of the major keys to their success

Key Strategies for Scaling:

• Financial Discipline: They carefully managed their cash flow to fund property purchases and renovations without overextending themselves.
  
  
• Leveraging Technology: They used our property management and rental software to easily streamline bookings, guest communication, and calendar management.
  
  
• Branding & Marketing: They trusted our platform for their business, benefited from the website we supplied for their growing B&B brand, and even social media became a success to connect with potential guests.
  
  
• Hiring Help: As their business grew, they hired a small team of cleaners, property managers, and customer service reps to ensure everything ran smoothly.
  
  

The Result: A Thriving B&B Empire

What started as a single spare room has now become a lucrative, multi-property business that brought in more than 1million last year. Mary and Derek now own and manage five properties in the city, a hotel (but not their original bed and breakfast as they moved from the semi-detached to a private 8-bed farmhouse! Their brand is now recognized as one of the top-rated in the area and the platforms would love to have them on their websites but they don’t need it. The couple generates a large steady stream of income from short-term rentals, and they’ve been able to scale to the point where their business is fully automated, giving them the financial freedom and retirement they dreamed of.

Beyond just the financial success, the couple has also found personal fulfillment. They love the flexibility that comes with disposable incomes, the joy of meeting people from all over the world, meaning in life to supply lucrative employment to others in the community and definitely the satisfaction of offering something truly special to their guests… plus they’re not even done yet.

Looking to the Future: New Horizons

Mary and Derek’s future is looking unbelievable an an inspiration to anyone looking to start out. They are now considering expanding into different 12 countries, 19 cities and regions, and possibly even turning their brand into a franchise of boutique-style B&Bs in top tourist destinations. With their proven model and strong online presence, they’re confident they can continue to grow their empire, help others and dare we say it… move away from the big boys to keep our own profits.

They’ve also started sharing their journey with others. Through a blog and social media, they offer tips and advice for aspiring entrepreneurs who want to break into the world of bed and breakfasts. In doing so, they’re helping others follow in their footsteps, while continuing to innovate and adapt styles in the ever-changing world of short and their now longer-term rentals.

Conclusion: Turning a Spare Room into Success

The Thompsons’ story is a testament to how one small idea of renting out a spare room, can snowball into something much bigger. With dedication, creativity, and a willingness to take risks, they transformed a modest side hustle into a full-fledged business that not only provides financial stability but also offers them the idealistic lifestyle they always wanted. Through strategic investments and a focus on providing an exceptional guest experience, they’ve built a thriving empire that continues to grow.

Their story is an inspiration to anyone looking to make the most of their resources and take control of their financial future. Whether it’s a spare room or a dream, the key to success is taking that first step, believing in the possibilities, and continuously working to improve and innovate.

This couple’s journey showcases how even the most ordinary spaces (like a spare room) can be transformed into a powerful asset. Their story is a perfect example of how entrepreneurship, paired with a commitment to quality and customer experience, can create a lasting impact and unlock opportunities for financial independence. They are now valued at being worth 4.2 million GBP. so they must be doing something right.

MESSAGE FROM MARY & DEREK

Subject: Thank You for Being an Integral Part of Our Journey