More People are Turning Accessory Dwelling Units Into Airbnb Rentals
January 22, 2019
Accessory apartments. Garden cottages. Granny pods. Secondary units. Mother-in-law suites. Multigenerational homes. Accessory dwelling units (ADUs). No matter what you choose to call it, ADUs (as they’re best known by) are gaining popularity, particularly with Airbnb hosts.
The Bureau of Development Services in Portland, Oregon defines an ADU as:
“A small, auxiliary dwelling unit on the same lot or within a house, attached house, or manufactured home. The unit includes its own independent living facilities with provisions for sleeping, cooking, and sanitation, designed for residential occupancy independent of the primary dwelling unit.”
While zoning regulations for ADUs vary depending on your area, ADUs offer a lot of benefits to Airbnb hosts all around the country.
Benefits of Using ADUs as Airbnb Rentals
Since its creation in 2008, Airbnb has become a new source of income for those who want to host guests in their respective rental properties. Of approximately 650,000 Airbnb hosts worldwide, 38% of them are making between $100-$499 per month, while 22% of those hosts are making between $500-$999 per month.
With ADUs, hosts can experience a multitude of benefits.
Since ADUs stand as independent living units, hosts don’t have to worry about using their own personal homes as rental properties, which opens up more availability to host guests for longer periods of time. More guests, of course, leads to more profit.
Both hosts and guests can benefit from ADUs by having more privacy. Since ADUs are separate units that include their own sleeping, cooking, and sanitation quarters, hosts and guests don’t have to worry about coexisting and sharing these areas. This can create much needed privacy for both parties, and separate living spaces are oftentimes more attractive to those renting an Airbnb.
While some hosts have rental properties scattered all over, ADUs offer the convenience of being on your property. This obviously reduces travel time but also makes cleaning, general upkeep, and being an attentive host much more convenient.
Part of the beauty of having an ADU is the opportunity for a variety of uses. ADUs are an addition to an existing property that can serve several purposes aside from just being an Airbnb house. Some of those purposes are
- Guest house for family or friends
- Home for tenants
- Storage unit
- And more
Benefits of Mighty Small Homes as ADUs
Mighty Small Homes has a variety of kit home models that can be converted into your very own ADU. Whether you prefer the carriage, modern, ranch, cottage, or tiny, any of these models can be customized to build an ADU.
All models are flexible and feature a variety of benefits for those looking to build an ADU as an Airbnb rental property, which we’ve listed below.
Lifetime Savings on Utilities
Mighty Small Homes are built using an envelope system with Structural Insulated Panels (SIPS) at its core. This envelope system allows our small and tiny home models to be airtight and 48% more energy-efficient than traditional, stick-built ADUs. As energy is used more efficiently, fewer utilities are used, ultimately leading to a lifetime of savings.
Each Mighty Small Homes model is composed of some of the strongest building materials on the market. The panels of our small and tiny home kits are secure, structurally stable, and able to withstand a Category 5 Hurricane. These durability features ensure the longevity of your ADUs and drastically reduce the amount of maintenance you’ll have to encounter throughout your lifetime.
With five model kits (carriage, modern, ranch, cottage, and tiny), the opportunity for customizing a Mighty Small Home into the exact ADU you need is only limited to your imagination. All models come in varying sizes and can be customized if needed. Essentially, you have the ability to build your ADU exactly how you want, which can go a long way in the eyes of potential renters as well.
Ease of Construction
Using prefab small home kits make the process of building an ADU smooth and efficient. Each Mighty Small Homes kit comes with pre-cut panels that eliminate waste and the need to measure and cut. Those who consider themselves handy have been able to get under roof in less than 24 hours. Being able to build quickly, efficiently, and without the need of a large crew saves hosts precious time and energy.
ADUs as Airbnb Rentals Make Perfect Sense
It’s easy to see why so many people are considering building ADUs as Airbnb properties. They’re profitable, convenient, versatile, and give you privacy.
If you’re already a homeowner and looking to add an ADU to your property, or if you’re considering building a home with an ADU on your property, consider using a Mighty Small Home. Our small home kits are perfect for ADUs, allowing you to rent them out for Airbnb guests, use them for storage, temporarily house your mother-in-law, etc.