You can always use extra space available on your property to build a constant cash flow entity for your real estate by constructing an Accessory Dwelling Unit (ADU) there.
An ADU can be a persistent source of additional income for the family made by renting out the space to the other individuals.
The potential economic increment is another benefit of building ADUs and renting them. The benefits for the economy as a whole are also tremendous as people buy and eat from local shops through which local businesses thrive. It lowers housing costs and is one of the main reasons why the California State Legislature has made the construction of ADU’s simple.
ADUs or garage conversions are also greatly profitable for the homeowners. As a home owner, you can build one in a way so that your privacy is not disturbed by the rental property as they typically have their own kitchens, a living area, and a separate entrance.
Besides being an affordable renting option, ADUs offer equity and a reliable source of income that does not require a huge initial investment.
Multiple types of ADUs exist but the most common ones are those converted from an already existing garage to a functional livable space.
The reason behind commonly using garages for ADU is because they are a far less expensive option than a newly constructed unit intended for the same purpose. The remodeling would typically cost you half the price and time of the newly built unit.
ADUs are quick and very cost-effective for means of passive income. The rent that you obtain from these spaces can potentially add up to your savings or relieve your debts (if any), help with monthly expenditures, and much more owing to your personal usage.
The benefits may pile up if you live nearby a tourist spot or simply a big city where there are many potential customers who are ever looking for a convenient spot to live and adjust amongst the hustle and bustle of life. This brings the article to the main point, and the main money maker; you can rent your space on websites such as Airbnb where you are may find the most suitable and profitable options.
Airbnb allows you to rent your space on a money-temporary basis by providing you a platform to interact with your potential clients.
Airbnb is a very popular platform and may not need an introduction. It gives you all the control of availability; be it nightly, weekly, or even on a monthly basis; pre-set rental charges, and a set of rules that you want travelers or visitors to follow during their stay. The website is extremely user friendly and you can upload miniature profiles for your ADUs so that visitors have an idea of who they are interacting with.
Some basic information about Airbnb
If you’re considering this option, then you should consider giving a 180-degree turn to your thought process and approach, and look at it from a guests’ point of view. The outlook and graphics of your profile should look friendly and hospitable. The upfront cost is included in the process that includes décor, furniture, interior, and photography.
You can stand out from the crowd of Airbnb users with an exceptional interior design that is beautifully captured. You can boost your bookings by providing exactly what you are presenting as one of the main fears of the guests is that the property is not up to the standards of listing.
The guests leave a review on your profile so make sure you put in an extra amount of effort to get that five-star review. Invest in commodities such as a comfortable mattress, catchy décor, and overall aesthetic ornamentation that is appealing to look at and live in.
Airbnb hosts users from around the world, and reportedly around 38% of the total users make around $500 per month.
A local market is a great way to determine how much you can charge for an ADU in a place that you are living in so this can give you a baseline for the average price of rental property in the respective city.
The average nightly price chart for renting out ADUs in some major cities of the world has been outlined for your consideration:
Standard Airbnb Price for Toronto, Canada: 100$
Standard Airbnb Price for NYC, New York: 180$
Standard Airbnb Price for Sydney, Australia: 120$
Standard Airbnb Price for London, United Kingdom: 134$
Standard Airbnb Price for Austin, Texas: 177$
Standard Airbnb Price for San Francisco, California: 191$
Standard Airbnb Price for Los Angeles, California: 158$
Standard Airbnb Price for Atlanta, Georgia: 135$
Thus, as a value-adding option to your initial investment, building an accessory dwelling or converting your garage into a housing unit can enhance productivity and focus if you want to build or convert a part of your home into such a unit.
Today, ADUs and Airbnb go hand in hand, you can live by the revenue generated through these units.
As stated above this is a convenient source of income especially for elderly people that can help you live comfortably, without being dependent on anyone. The commissioned study of Airbnb suggests that around 45% of hosts are self-employed and freelancers that suggest that this passive cash flow through your available property in present times is an option that must be employed in use as you can end up with a total sum of about $500-$15,000 per night depending upon your rental plan.
