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Accessory Dwelling Units (ADUs) Perfect for Airbnb Rentals

Updated: Feb 16, 2023

An accessory dwelling unit or ADU for short can be referred to by many different terms. However, they all mean the same when it comes to being occupied by a tenant. Today, they have started to become very favorable among homeowners who are looking to post them as a rental through Airbnb. Here are a few perfect reasons why an ADU would make great Airbnb rentals.

Stable Source of Revenue

Listing your home’s extra dwelling with Airbnb will provide a stable source of revenue for months or even years. When a rental owner makes a listing they are able to set the terms including the length of time renters can occupy the rental. This means that the longer the tenants rent your ADU, then the more monthly income you will get. This is a great residual income to have which can be used to pay a mortgage.

Not only that but if you ever need to move for whatever reason, you will already have a tenant who may be interested in renting your home. You can then bring in another renter for the dwelling thus bringing in more revenue than you were before. Many homeowners have begun to do this in areas where housing has become extremely expensive.

However, when a property's dwelling is rented out the owner needs to ensure that a great relationship is built with the tenant. This is because while many dwellings are being searched for through web sites online, the prospective tenant will first take a look at the reviews of the rental if any. Building the type of relationship that you need takes time, however having regular renters will be a great start. Although these short term renters are great, they will not be able to create a continuous income if nobody wants to rent from you.

Airbnb Rentals Help Provide More Housing

As you are probably aware, there are many states experiencing a housing crisis. This is especially true for places located in California. There just seems to be an urge that makes people want to live there more than any other place. This is fine, but it can become difficult when the available amount of housing does not meet the demand. This is where listing your dwellings as Airbnb rentals come into play.

When you rent your ADU as an Airbnb, you allow others to have an affordable way to rent a home. This is especially true if the rental is small such as a dwelling unit. You’ll see this need among single or young couples just starting out. Making your property available for the long-term will alleviate a renter's search while putting money into your own pocket.

Be Aware that Regulations Vary by Location

Renting out your dwelling for the short-term may soon become a thing of the past. This is because many cities have begun to eliminate rentals for short-term use. You will see a lot of these restrictions in places like the beach or where a lot of vacationers frequent. If you are looking for a short-term rental in areas like these, then you may need to change your priorities of where to stay or decide to live there for a while.

Not only that, but the city where you want to list your rental may have a minimum placed on the amount of time it can be rented for. Many owners will have no choice but to rent out their dwelling for the long-term. If anything, make sure to check your local authorities for clarification.

Besides the requirement of being long-term, other aspects exist as well. These include laws governing tenants and fair housing. If this all seems to be way over your head, then you would benefit from listing it as a long-term rental opportunity. When you do this you will at least have some Airbnb rental income trickling in.

Peaceful Living

When you rent your ADU as an Airbnb you and the tenants you rent out to will receive a great amount of peaceful living. This is due to the fact that you are able to live separately from others and are able to allow tenants to maintain their own kitchen, bedrooms, and anything else designated to them and the dwelling. Plus, having the dwelling listed with having private and peaceful living becomes very appealing.

Having an Accessory Dwelling Unit for Rent on Airbnb is a Smart Move

When you consider the above reasons, it’s understandable why homeowners would consider listing their dwelling for rent.

With the many benefits available that rental dwellings provide, having your accessory dwelling unit listed seems like the smart thing to do. Plus, having Airbnb rental income is never a bad thing when you are able to help out a family looking for quality housing in the area.



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