I have done this before and would like to try again this year. I can find a house to rent in the country, with separate rooms. We can cook at home or be on our own. Not a commercial venture and I'm not a tour guide, I just love to share the experience and see as much of Europe as I can afford!
I find it best to be able to stay in one place for a week and ramble out from there. Renting a house is the most affordable way to do this - much cheaper than comparable hotel or pension accomodations, and MUCH nicer! (Non-smoker)