"Family and Friend" rates?

[Tom]

If this has been done, please point me to the thread. I saw a long thread on neighbors' requests, which is hosting people you do not personally know referred to you by someone you do know. This question is about personal acquaintances. How do you handle and charge for visitors on the broad spectrum of personal connection from core family and old friends to business acquaintances, friends-of-friends, etc? Do you "book" a room for them; do you have separate non-B&B accommodations to use?

 

[Country Girl]

I LOVE it when family stays with us so they always stay for free. Friends always stay for free too, but they usually know enough not to ask when it's our busy season. Friends of Friends and distant relatives get a 20% discount as long as it's not during our busy season. If they want to stay during our busy season they pay full price. The hard part comes when they also want to be "entertained" while they are here. That drives me crazy.

 

[Samster]

I would never charge my family! Too happy to have them come and visit! Close friends, same deal. Other friends and acquaintances would get a discount. Why not? It's something that I could share of our business.

 

[gillumhouse]

When my kids come visit the B & B is not open. A co-worker was our "shake-down" cruise - that visit was in exchange for an HONEST critique. The next time she came I said N/C because she was coming to visit us, not the B & B and SHE told me no, you are a business, so she gets a deep discount, but she pays. Not enough of my family - other than kids - come to visit to make it a problem for me. I charge them $1 per night. IRS says you must charge but they cannot tell you how much to charge.

 

[bbinnsitters]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

 

[Tom]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

I am looking for responses to the "business acquaintances, friends-of-friends" part of the post. The family side itself is obvious; what I am curious about is how you deal with people less connected. What about a really good friend who wants to invite his friend, a person you may know only casually?

 

[gillumhouse]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

I am looking for responses to the "business acquaintances, friends-of-friends" part of the post. The family side itself is obvious; what I am curious about is how you deal with people less connected. What about a really good friend who wants to invite his friend, a person you may know only casually?
.

What about a really good friend who wants to invite his friend, a person you may know only casually?
Tell them you have to charge Corporate Rate. If you let them stay free, the IRS will disallow that room or rooms as business - there has been a ruling on this. Your friend, IF a REAL friend should understand that this is business and you are doing the best you can. If this is not understood, I would question how good a friend the friend is. The other person is a casually known person - sorry but brothers rat on each other, I would not want to chance it.
I have never expected a friend to even give me a discount because that would be taking their livelihood from them. If I am going to buy something, I would rather buy from a friend and give them the business.

 

[JBloggs]

I think it would depend on the season/dates and who. I would never turn away a close relative. But then mine rarely visit as I am on the opposite side of the country or overseas from all of them.
If it is an old coworker or such give them a discount (or I should say offer a discount). Again, to me it depends on when they want to visit. Usually rel's and old friends only visit in season though, when it is nicest, right.

If you have a ton of requests you can offer the friends and family discount 200% the rack rate.
Don't forget it depends on how many rooms you have as well. Do you have only a couple rooms? It all goes into the equation. I don't think you should give away rooms when you have bills to pay to some person you barely know.
One perk of this business is being able to share what we have. Also to be able to "trade rooms" with other innkeepers and not feel bad about doing so, come on out and visit y'all! No programs to join! Just give us a holler!

 

[egoodell]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki

 

[gillumhouse]

I think it would depend on the season/dates and who. I would never turn away a close relative. But then mine rarely visit as I am on the opposite side of the country or overseas from all of them.
If it is an old coworker or such give them a discount (or I should say offer a discount). Again, to me it depends on when they want to visit. Usually rel's and old friends only visit in season though, when it is nicest, right.

If you have a ton of requests you can offer the friends and family discount 200% the rack rate.
Don't forget it depends on how many rooms you have as well. Do you have only a couple rooms? It all goes into the equation. I don't think you should give away rooms when you have bills to pay to some person you barely know.
One perk of this business is being able to share what we have. Also to be able to "trade rooms" with other innkeepers and not feel bad about doing so, come on out and visit y'all! No programs to join! Just give us a holler!.

We do the same here - we call it a professional courtesy discount. Thank you.

 

[JBloggs]

Tom what is the title of the thread? Just askin'.

 

[bbinnsitters]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki
.

Seriously?!

 

[happyjacks]

When it comes to friends and family visiting, I put them in two categories:
1) Those who would come to visit us no matter where we were or whether or not we had a B&B. These are close family and friends who are happy to come in the slow seasons because that's when they'll actually get to visit with us, to have our time and attention when we're not crazy busy working the business. They're here to see us, not for a vacation. I don't charge them.
As for tax purposes, here in Canada I designate space as either 100% biz, 100% personal, or 50-50. I have one guest room that I've designated as 50% business use and that's the room these folks stay in.
2) Then there are those who want to experience this region, enjoy a getaway, the same reasons our "real" guests come here. These are acquaintances, former colleagues, not-so-close relatives, etc who would be spending money for accommodations anyway, but choose to spend it here. Why? To support us, or to get the bonus of seeing us and catching up, or to get the perks of "knowing the owner" when they come. I gladly give these folks a discount, with some exceptions. No discount during long weekends or peak weekends.
The amount of discount depends on time of year, how close I am to them, how many nights they're staying. I've done everything from 50% to 10% off. I take their booking like any other guest and tell them up front what I'll offer as a "friends & family discount".
Hope that helps.

 

[egoodell]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki
.

Seriously?!
.

Seriously?!

I am dead serious. You are not allowed (check with your cpa as laws do change) to house family or friends for free. If they find out they will remove that room for one year as part of your B&B. I'm not an accountant so I may not be wording this properly. I would not mention housing relatives or anyone for free on a public forum.
Riki

 

[Samster]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

I am looking for responses to the "business acquaintances, friends-of-friends" part of the post. The family side itself is obvious; what I am curious about is how you deal with people less connected. What about a really good friend who wants to invite his friend, a person you may know only casually?
.

You have to do what YOU feel comfortable with. There's no easy answer to this. If you are offering your really good friend a deep discount, you can offer his friend your corporate rate or whatever you feel is fair. I'm assuming that you're talking about 2 rooms here. Be honest with your friend and tell him that you still have to pay the bills. Honesty goes a long way here.

 

[bbinnsitters]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki
.

Seriously?!
.

Seriously?!

I am dead serious. You are not allowed (check with your cpa as laws do change) to house family or friends for free. If they find out they will remove that room for one year as part of your B&B. I'm not an accountant so I may not be wording this properly. I would not mention housing relatives or anyone for free on a public forum.
Riki
.

Well, I continue to learn something new every day on this forum!

 

[Samster]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki
.

Seriously?!
.

Seriously?!

I am dead serious. You are not allowed (check with your cpa as laws do change) to house family or friends for free. If they find out they will remove that room for one year as part of your B&B. I'm not an accountant so I may not be wording this properly. I would not mention housing relatives or anyone for free on a public forum.
Riki
.

Well, I continue to learn something new every day on this forum!
.

Well, there's also something to rooms being out of service. ;-)

 

[bbinnsitters]

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?.

All I can say is I don't charge my family when they come to visit - isn't your B&B also your home?

I would remove this comment - the IRS will not let you list that room for one year as part of your business if they know this. If you ever get audited it has happened that the person wills say, "Nice place! I bet your family comes to stay often."
Answer is "no, they stay at the nearby hotel"
It is your home, but you will lose your home business write off for a year. Unless they stay in the owner's quarters with you, I believe, but I would even check that out.
RIki
.

Seriously?!
.

Seriously?!

I am dead serious. You are not allowed (check with your cpa as laws do change) to house family or friends for free. If they find out they will remove that room for one year as part of your B&B. I'm not an accountant so I may not be wording this properly. I would not mention housing relatives or anyone for free on a public forum.
Riki
.

Well, I continue to learn something new every day on this forum!
.

Well, there's also something to rooms being out of service. ;-)
.

Yeah and it's also not against the law until you get caught, or like my Mother always said: Sometimes its easier to ask for forgiveness than permission.

 

[JBloggs]

Sheesh how did this thread turn so legalistic. Tom was just asking what RATE he should give family and friends. RATE. It says so in the thread title.
Show me the money!

 

[Samster]

Sheesh how did this thread turn so legalistic. Tom was just asking what RATE he should give family and friends. RATE. It says so in the thread title.
Show me the money!.

Exactly, that is why I suggested that he come up with a rate or discount that he's comfortable for him for friends and friends of friends! Let people police their own businesses for goodness sake!