Is it best to register as a business to let out lodges in my garden to students??

[kevin m]

I am considering building some student lodges on some land at the rear of my property. (4 in total) These will be self contained with bathroom, kitchen bedroom. In total I will recieve aprox 19k in rent per anum, but they will cost 20k to build, and supplying electricity will cost a fair ammount. I will not make any profit until year 2 or 3, but from there on this could be a nice source of income. My question is whether to start this as a business or just consider it as renting rooms out. The main concern is obviously tax, as i'd like to pay as little of that as possible!!!

This would be my first business venture, so i am cluelesss (at the moment) as to which way is best. If anybody could give advice, or point me in the right direction it would be much apprieciated!!!