So You Want To Buy a B&B;?

At a moment when the stock-market slump has disappointed millions who dreamed of early retirement, and when layoffs have left the workplace more stressful than ever, one escape route beckons brightly for many older employees. They imagine moving to a pretty village, buying a big old Victorian home with a wraparound porch and opening a bed-and-breakfast. They see themselves baking cranberry muffins, tending the flower garden and watching the money roll in from grateful guests.

The resilience of that dream can be measured in dollars: eager buyers have bid up the price of an existing B&B; to $159,000 a room, or roughly double what they cost two years ago. Though prices vary widely, the typical eight-room inn now goes for about $1.3 million. Over the same two-year period, net operating income--that's revenue minus all expenses except for mortgage, depreciation, owner's salary and income taxes--has increased more than 40%, to $32,774 a room. But it has not kept pace with the rising cost of inns. You may not get a big return on your investment until you sell the inn years later, if then. A bank CD would be safer--but where's the fun in that?

Clearly, few of those who buy a B&B; do it mainly for the money. But the ones who manage to achieve their dreams carefully check the probable costs and returns first--and not just in terms of money. They must be willing to pour lots of hours and energy into everything from making beds to marketing their inn. And they must be the kind of people who will take satisfaction not just from owning a beautiful building but also from inviting strangers into it and tending to their needs. We've interviewed successful veteran innkeepers and other industry experts, and here are the questions they say you should ask before making a big down payment on that B&B; that charmed you on your vacation last month:

Will I Make a Good Innkeeper?
If you are truly gregarious, yes. If you just adore old houses, no. Bill Oates, a seasoned innkeeper and consultant in Brattleboro, Vt., says, "Too many people get into the business with an edifice complex." They don't realize that "their job is to make other people feel good. If they don't get their kicks from that, it can be a very tedious endeavor." Anne Weber, who with her husband Ron owns the Country Willows Bed and Breakfast in Arlington, Vt., says, "You have to have a passion for people" to generate the energy you'll need to be a decorator, gardener, carpenter, plumber, cook, housekeeper, marketer, bookkeeper and manager.

Running an average eight-room bed-and-breakfast requires 193 hours of work each week--and owners perform about 40% of that work themselves, according to survey results interpreted by Pat Hardy, co-founder of the Professional Association of Innkeepers International (PAII). The successful innkeeper is usually an entertaining, well-organized, adaptable morning person, comfortable with very little privacy.

How Do I Prepare?
Among the most useful how-to books are So--You Want to Be an Innkeeper by Mary Davies et al. (Chronicle Books) and Open Your Own Bed & Breakfast by Barbara Notarius and Gail Sforza Brewer (John Wiley). Also helpful are Arrington's Bed & Breakfast Journal bnbjournal.com ), Yellow Brick Road yellowbrickroadnl.com ), Inntimes virtualcities.com/intim/intim01.htm ), innSights innsights.com ) and PAII's website, PAII.org .

But don't just read; stay in as many bed-and-breakfasts as you can, taking notes and talking to the innkeepers. Sign up for workshops or classes offered at community colleges. Attend a seminar given by a a top consultant--preferably one who owns a B&B;, such as Carl Glassman of New Hope, Pa. new-hope-inn.com ) or Sallie and Welling Clark of Colorado Springs, Colo. holdenhouse.com ). The typical seminar lasts a couple of days and costs $1,000 to $1,500.

Arrange for an apprenticeship to one or more consultant-innkeepers with whom you can work for a week or more--and who usually charge fees of about $1,000. Consultants and organizations such as PAII may help you find opportunities for apprenticeships and intensive workshops. Once you've gained some experience, you might earn a stint as an innsitter, for which there is high demand and some pay. But the objective is to learn whether you're cut out for innkeeping. "Before someone moves 500 miles, breaks the piggy bank and leaves friends and family," Glassman warns, "that person should test the waters."

Where Should I Buy?
More than 50 million guests stayed at U.S. B&Bs; last year, but they're more attracted to some locations than others. The best bet is a popular destination where much of your marketing is done for you. In Santa Fe, N.M., for example, occupancy rates run as high as 90%. A long season and nearby attractions such as craft fairs, historic sites and antique stores help as well. B&Bs; in small cities benefit from business travelers who check in during midweek. And with B&Bs;, supply seems to create more demand. So consider an area where there are already many successful inns. Says Diane Crosby, who with her husband Don, owns the Village Green Inn in Falmouth, Mass.: "There's a group of us here who all work together, referring back and forth when we're full." And check zoning laws: you can't host weddings if the town won't permit parking for the guests.