AIBU - garage conversion for Airbnb income?

[lovetoomuchfood]

We were going to convert our garage into living space for us but I suddenly thought... what about making income from airbnb!?

We're 20 mins on public transport from 3 cities with loads to do, plus there is a National Park 10 minutes drive away, the beach 20 minutes drive away so good location I think? We also have spare parking.

It will be a very mini airbnb but the photo is to scale (the bed bit is on a mezzanine). There wont be any garden space.

Just being greedy or a good money earner? Anyone any advice/wisdom!

Why not just convert it into an ensuite bedroom to rent out rather than a self-contained apartment? Or you could rent out the parking? Have you ever been on Air BnB? A lot of it is spare rooms. It's a nice idea but you don't seem to have the space in there for what you're trying to do. With a bathroom, a bed and a kitchen in a small indoor space, you run the risk of it all getting very, very damp. I'd rather stay in a good ensuite room with ample ventilation than a cramped "apartment" that's not an apartment.

Is it worth it? If you have a mortgage you’ll have to change it (cost involved) and could make your repayments higher. You’ll need to get new building insurance too (maybe landlord insurance?) you’ll also need to declare all earnings on your tax return - Airbnb share your details with HMRC so no getting out of it. Considering the situation atm, I’m not sure it’s worth it. You won’t be making much. Terms changing all the time on if guests need to be refunded for cancelled stays due to Covid. You could find yourself caught out.

I've just realised it's smaller than my living room!

As another poster said, your not taking into account the size of a spiral staircase, the diameter will be considerably more than a meter.

Also your sofa appears to have a combined seat + backrest measurement of less than a metre, which seems very small, and sitting on the sofa you'd be only a metre away from the TV!

You need to get a tape measure out and look at how small 1 metre is!

You may well find permission requires it to be ancillary to the dwelling, not separate. I doubt it could be permitted development if two storey.

Regardless of the size of the property, holiday rentals can be infinitely more trouble than they are worth - you can't half-arse it.

3x4m is so tiny for an 'apartment', even with a mezzanine bedroom. What are the ceiling heights like, under the mezzanine, and in the bedroom. I wouldn't fancy being crammed under the eaves.

I have stayed in a converted garage airbnb, but it was a separate building, a nice wooden one, and with a bit more space than yours. It was small but comfortable, all very trendy and vintage style. I chose it due to price and location close to an event we were attending. It was fine for that night, but not somewhere I would have wanted for a holiday.

It had bed one end, bathroom the other, and a small table and chairs, tv, and kitchenette in the middle. By kitchenette I mean kettle, toaster, cupboard and microwave. No sofa. It worked because it wasn't trying to pretend to be anything more than a small overnight place.

Honestly, I think it's relatively small for your location as you describe it, and for the pittance you'd make out of it (plus the hassle) you should use the space for your own family.

If you were in Islington, then YES, you'd make a mint, but otherwise you'd be lucky to get bookings for more than 30 - 50 days a year for what you describe.

Thanks so much for your comments- good ideas :-)

The 3 cities we're near are in the south, all 3 have good tourist facilities so I guess they're popular with tourists but I'll need to do more research.

I've planned for a sliding door as it has a separate entrance but good comment about the staircase, I think we will need to allocate it more space.

Rooms in houses are on airbnb for £50 a night in our town so I was thinking that it would be worth £75 a night as is a step up to have en suite and kitchen... even though they are tiny!

It's attached to the house so we'd be planning on adding it to our boiler but it's a really good point that we might need a boiler upgrade!

I've allowed for wall insulation but thanks for mentioning as I am a real notice in this area (you can probably tell!).

I use airbnbs and have stayed in and been very happy in self contained garden rooms. Unless you're in a very touristy area, the distances you've described to the local attractions don't sound great.

wardrobe/hanging area for clothes? space for bedside lamp? place for guests to put bags/suitcases/wet clothes if it rains?

I'd say you're being greedy. It will be cramped and dark and I wouldn't stay there. What about insulation and sound proofing? Just enjoy the extra space for your own family if you don't need a garage.

Go for it. Your target audience is not a family but a couple or a single person visiting friends, to area etc but not a family so dim your Airbnb to that

I would say a fold down able for me would have me choosing else where as we do have breakfast in our Airbnb when we travel,Cindy sofa where two adults can Lounge also a necessity

This coming from a couple who do use Airbnb to do long weekend breaks

We have a friend who is doing just as you’re doing. He lives in Sussex. All his guests are adults. Some in the area for work, some to visit family in the area and the others are exploring the area generally being out during the day.

Best of luck!

OP, if your charging 75 a night I would imagine people would just stay in a hotel/B&B.

75 a night for a cramped windowless room is mad!

I wouldn't want to stay in someone else's garage.

I don’t see how it’s greedy to service demand for accommodation if done fairly. It’s an investment - you give up some non-essential benefit (extra space) to increase your financial stability. That’s not so much greedy as sensible - looking at long term over short term gain. It’s not really any different from regularly putting money into a mutual fund or pension instead of spending it on treats each month.

However, I think you need to do some more planning on this before you commit to the idea. You have several items on your plan that look too small. The stairs - by quite a long way - maybe use some sort of ladder if that’s allowed. Your sofa is just two feet deep and seems to be set 3 feet from a wall. Is that really going to work? Is the roof high enough? If the mezzanine is in a pitched roof area is there the head height necessary for getting up the stairs? And for where the bed is? Try laying out the floor plan in cardboard, cutting Out to the dimensions of the actual furniture and fixings you intend to buy and see if will actually work (harder to do at the mezzanine level but you could instead mock the ceiling so you get a proper feel for it. Check building codes and Insurance, mortgage, etc. requirements.

Also, do some research into the market in your area. You know there are rooms going for £50/night. Who is renting these? Tourists? Business people? Singles? Couples? What features get commented on in reviews? What sort of occupancy do these rooms seem to have? What nights seem most popular? When you consider the capital outlay and the wear and tear, can you realistically get enough custom for it to be financially savvy? Are there any accommodations at the price point you’re considering? If not, that’s a concern though it may just mean unmet demand. If you had to lower your price to the £50/night you’ve seen, would it still be a good investment?

You need to turn a heavy profit to cover extra costs (tax, maintenance, safety requirements, insurances) plus do check planning and building regs.

We rent out a whole house and it’s a lot of work

Do it. I have a friend who makes a fortune. One bed. Tiny shower. No heating microwave only. But done up beautifully (not expensively but beautifully). Rural. Not near anywhere. Permanently full. Couples or people getting out of city or needing somewhere quiet to work for a week or so. She only does it in summer months. She loves it too. We are going to do exactly that when we move house.

75 sounds way too much. I use air BnB a lot for work, for a room in a house, 25 to 30 is the going rate. Your garage might be worth 40 max, but that is assuming anyone wants to be in your town. If I am visiting a city I want to stay in the city, preferably walking distance from the tourist area, not 20 minutes drive away.

I stay in lots of Airbnb because I regularly travel on business. I wouldn’t stay in the property you propose because it is far too cramped. I can stay in a premier inn for about £50 a night which will have a decent bed and bathroom plus space to relax. I prefer premier inn to Airbnb unless a) it’s cheaper or b) it’s nicer for the same money. What you are suggesting is unlikely to be cheaper and isn’t nicer

Would you be happy with low occupancy and using it for family/extra space at other times? Basically a bit of extra income rather than a proper let?

My friend stayed in one like this, it was let out on airb’n’b for peak times when the owner could be bothered and used by the family as a spare room otherwise. Not a popular holiday area but useful for people visiting family. Toilet, kettle and mini fridge. Needs to be cheaper than the local b&bs though.

My friend did this and gets £50 per night.

It will need building regs but that's not a biggie however because it has a separate kitchen and wetroom it will attract the attention of council tax who may decide to classify it as a separate residence (doesn't matter if it's in the grounds of your home) or reband your home. This is a problem for lots of granny flats that pop up and people don't think about.
It would count as an extension of it didn't have the kitchenette and as such wouldn't fall foul of council tax.
Also your spiral stairs are too small - I think what you are showing would be tight. You might get away with a space saver stair if building inspector would agree.

How many rentals before you actually earned any money though?

We built a 5m x 4m annex on the back of a detached double garage. Similar to your plan with a big room downstairs (now a gym) and an office/spare room upstairs on a mezzanine floor (room for massive desk plus double bed and some other furniture).

Planning allowed a shower room under the stairs but made it clear no cooking facilities could be added, in order that it could never be a separate, stand alone dwelling. Covenant that it never be knocked through to the garage either to create a second house.