Merely three years ago, it was described as a concept that was " mooted

as a policy initiative by the Government of India ", but today, there are
measures being taken to encourage them: as a means of self-employment
and promoting the " Indian way of life ". As for us, we'd be lying if we
said we hadn't dreamt of living in a house overlooking misty mountains,
and renting out extra rooms to guests from around the world—sharing
lives and stories. Obviously, there's much that goes behind to make it as
effortless. We spoke to the people behind some of India's most popular
homestays and got you everything you need to get started.

Firstly, what is a homestay?

The government of India classifies an establishment as a homestay/B&B

only if:

The owner/promoter along with their family is physically residing there

There's a minimum of one and maximum of six rooms available to rent

Post-evaluation, and depending on the facilities they have, homestays

are divided into various categories, which differ from state to state. For
instance, while the government of Kerala classifies homestays as Silver,
Gold and Diamond, the government of Rajasthan only categorises them
as Silver and Gold. The higher the category, the higher are the yearly
fees—varying from state to state—a homestay has to pay to the
government.

BEFORE YOU START

Think about why you want to set up a homestay

A homestay is different from a hotel or any other staying facility

because it entails owners sharing their beliefs, experiences and lives with
their guests. If you don't deal well with people, a homestay may not be
the best idea, given how interactive the setting is.
Ask yourself where you want to take your lives to, and let that define
your homestay, suggests Mansoor Khan, who owns Acres Wild , a
cheesemaking farmstay in Coonoor, Tamil Nadu. "I wanted to get out of
Mumbai and live on a farm." And a farm fit in well with his ‘back to
basics' philosophy. While the objective was to move out of the city, the
farmstay came as an afterthought. For Devendra Parulekar of
SaffronStays , tapping into lesser-known Indian destinations and
offering people stay options outside of the hotel industry acted as driving
forces. The important thing is to figure out what you're passionate about
and what comes naturally to you. Ransher Rathore, who converted his
family home—Jaipur's Khas Bagh —into a homestay-turned-boutique
hotel, adds, "It's a business that becomes a way of life."

Choosing a location

Khan suggests that one start with deciding how far from the city they
want to go, as most homestays are in quieter, more private areas. Acres
Wild is located just outside of Coonoor and is easily accessible from
most tourist spots ("I didn't want to completely remove the family from
civilisation"). Plus, the farther a property is from town, the more
expensive it is accessing it. "Think of how much you're cut out for."
Having set up stays across the country, Parulekar has his favourites.
"The Maharashtra government is serious about tourism", he
says, explaining the ease of setting up a homestay in the state. "I've had
to pay zero money in bribe. In fact, they follow up. Goa is very friendly,
while the Tamil Nadu government needs to support [homestay owners] a
little more." In Tamil Nadu, a homestay is treated as a commercial
entity, which makes them liable to pay commercial and service taxes.

It's also important to be mindful of other stay options around and give
a thought to the activities one can do when there—for example,
strawberry picking in Mahabaleshwar, adventure in Matheran. A large
percentage of homestay guests come through weekend getaways and
holidays with families and friends, so it's ideal to be located at driving
distance from a major city.

Investment

Two factors influence the cost of setting up a homestay: the location and
the kind of property you want to be, says Karthik Davey, who owns
Dhole's Den in Bandipur. The former determines transportation costs,
while the latter will affect all small and big costs—from construction to
amenities. Unless you're converting an existing home into a homestay,
setting up a homestay is a significant investment. Khan bought about 22
acres of land in 2005 and built Acres Wild over the next seven years, the
cost running up to approximately Rs6cr, including land and
infrastructure. Breaking even is not of concern, though "I don't know if
I'll ever recover the costs, but what I do gives me satisfaction."
Rathore agrees, "The house could be worth whatever, but it doesn't
matter because you're not looking for ROI." It's about sharing something
you're passionate about.

Thankfully, the process is quite simple

While they were initially handled by the state government, applications

are now accepted and processed at the district level itself, explains
Davey. "This makes it easier for establishments in smaller towns and
villages to apply." After submission of the application form,
representatives of the district government come in for a surprise
inspection, following which the homestay is recognised and rated as per
available facilities. "During our inspection, they told me, ‘If you include
a minibar, we'll put you in the Diamond category'", Davey narrates to us
over the phone. As a homestay is not treated as a commercial
establishment in most states, no commercial, luxury or service taxes are
levied. The process of acquiring an electricity connection is the same as
that for a home, and the taxes vary from state to state.
Once initiated, the application and registration procedure takes a few
months, but the entire process takes a couple of years to be completed.
More recently, several states—such as  Karnataka —also allow
applications and documents to be uploaded online. Rathore believes that
one cannot start with a place that's average. "It took me five years to get
to a product I was happy with." Take time to build a place you'd love to
stay in yourself.

As for amenities and services, go local

As Parulekar does, use local resources for everything from décor to staff,

which makes the process faster and cheaper. Locals, he explains, "are
stakeholders in the process", and the target is based in local markets, as
opposed to out of it. Treat it like a home, but don't compromise on
comfort and attention to detail. As Rathore puts it, "It should feel like a
home but function like a hotel."

AFTER THE LAUNCH

Marketing

Before putting word out there, get your friends, families and influencers
—travel bloggers, for instance—to try out the property. While
Rathore believes that word of mouth is the best way to go—"it means
better quality of people"—he also agrees that online representation is
good for understanding what people are thinking. Khan explains that it's
integral that guests are informed and know exactly what they're in for.
"This is why we stopped going through travel agents."

Parulekar stresses the importance of keeping in touch with former

guests, as repeats and referrals contribute to a majority of guests at a
homestay.

Challenges regularly faced

Besides state-specific bureaucracy, security, too, can be an issue. Make

sure you have a CCTV at the reception, and keep records of guests'
identity proofs as a precautionary measure. Parulekar suggests that one
make locals part of the process to help with site-specific problems that
may arise from time to time. Davey warns of unexpected visits from
local bodies that are unaware of government rules. The solution? "Be
very clear about official procedures" and "keep all permissions and
paperwork with you at all times". As for unruly guests and
troublemakers, remember that a homestay is, after all, a private property.

A homestay is different from just renting a room

You need to give people a reason to visit, says Khan. What you're doing
there is as important as how much you invest or where you're located, if
not more. "People come to share an experience" and "you should have
something to share with your guests—whether it's making cheese or
your collection of stained glass." Muthu Bopanna, who converted his
family home as a homestay— Gowri Nivas in Coorg—believes that it's
all about sharing his daily life with guests. "When I go on walks in the
plantation, I happily take guests along." Rathore, also a professional
polo player, suggests that one think about what comes to them naturally.
So Khas Bagh has stables and paddocks with horses, and guests are
welcome to accompany Rathore to polo matches.

Good to know

In terms of government support to set up a homestay, these states are

your best bet, according to our insiders: Rajasthan, Kerala, Maharashtra
and Karnataka.

Homestays are not organised, and every one is run individually, so

attention to detail is important; ensure that a standard of cleanliness and
comfort is maintained.

Work on the property yourself. You can get a manager, but it helps to
know how to run the place—from managing bookings to waking up in
the middle of the night to cater to a guest's call.
There's no set format of running a homestay, but remember that it is a
reflection of the owner, advises Bopanna. "Make it your home, or the
guests might as well stay in a hotel."