Making use of an unused guest house is a perfect way to earn extra money now as well as add value for the future sale of the property. If you have a guest house that is physically separated from the primary abode, you have the potential to increase your income substantially. This is especially true if you live in a city or state that is a popular destination, although more obscure destinations may be desirable for people wanting to get away from the crowds. It is possible to earn thousands of dollars a year if you are comfortable with the concept.
Listing Your Property
Listing your space on sites like Airbnb or VRBO is as simple as creating an account. They take care of verifying potential guests and match them to hosts. You are assured that communications are trustworthy and any funds to be collected are safely transferred via their trusted server.
The benefits of renting your unused space far outweigh the negatives. You set the price, decide the times you want to rent, and have the option of approving potential guests. Some of the costs associated with renting your guest house are cleaning charges and higher utility bills. You are responsible for accurately listing the amenities of the property, meeting standards for cleanliness, and communicating in a gregarious manner with guests.
Potential guests choose properties that are appealing, so be sure to clean and declutter. It may behoove you to have professional photographs taken to show your home in the most desirable light. Stay on top of any queries to eliminate long vacancies. One way to attract the eye of potential customers is to include special amenities like a latex mattress. Because getting a good night's sleep is highest on most customers lists they will prefer your guest house.
One caveat is to remove or store any valuable items. Many listing sites offer insurance to cover any mishaps that may occur while the guests are in your home.
Adding Value to Your Home
A property located in an area that has a great selling point, such as proximity to the beach or mountains, improves your chances of renting it frequently. You might also want to add other services, such as preparing meals, driving, or planning excursions if you are interested in turning this into a full time venture.
When you are ready to sell your home, a separate guest house will bring a much higher sales price. If you have made this a full time business, you are selling a business, in addition to the primary home.
Increased property value is pretty well assured because a home with a separate guest house has many uses. Buyers may want aging parents nearby, or families may need someplace to stay while the main house is being renovated, or adult children may not be able to afford a place of their own. Even adding one in the back yard, after moving in, is plausible. They are not that difficult to build, or you could purchase a quality prefabricated one.
Becoming a Landlord
Keep in mind that if you rent your guest house more than two weeks out of the year, you will have to pay taxes on the rental income, but associated costs may be deducted from your taxes. Other points that need to be considered are zoning considerations, HOA restrictions, and the hotel occupancy tax, which the city collects monthly. Some sites will collect this in some cities, but if yours is not one of them, you are responsible for collecting and submitting it.
You are paid automatically after guests check in, so you do not have to handle funds directly. Most, if not all, sites confirm all pertinent information about the guests and helps you price your rental based on competitive rates in the area. The various payment options are at your discretion.
So renting your guest house now and selling it later for an increased value is a win-win situation. Though it is an idea that has come about within the last few years, it has become one of the most popular ways to travel. If you have a guest house or any other space that you are not currently using, take advantage of this lucrative opportunity. If you don’t currently have a rental house, consider building a guest house for short and long-term income.
Source: Mills, Mikkie. "The Value of Adding a Guest House." Realty Times. 9 March 2018. Web. https://realtytimes.com/advicefromtheexpert/item/1015749-the-value-of-adding-a-guest-house