How to Turn Your Unused Shed into a Lucrative Airbnb

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You can always use extra income, especially in today’s shifty economy. In fact, it’s possible to look for different income opportunities with different forms of real estate. For example, if you have an empty shed just standing on your property, why don’t you hit two birds with one stone by turning it into an Airbnb guesthouse? You can add the passive income to your savings and, at the same time, prevent a perfectly livable space with a good foundation from deteriorating because of neglect.  

Airbnb’s demand has risen through the years, now rivaling the accommodations of hotels and sometimes even surpassing them in guest satisfaction. Customer satisfaction is up to the host’s ability to anticipate the guests’ needs, and some Airbnb hosts go above and beyond to make their guests as comfortable as if they were in their own homes.

In this article, we guide you on the necessary steps to turning your unused shed into a lucrative Airbnb.

Securing Permits and Building Requirements

Before you start with any renovation, be sure to stop by your local government building to inquire about the needed permits and building requirements in operating an Airbnb. Dealing with government offices can be a pain, with most offices making you run around in circles. For this reason, it’s wise to anticipate the things you need to do to make your shed-turned-guesthouse up to code.

Measuring the Shed Size

Sheds have different styles that project their individual charm. Yours may be a cabin shed, a Dutch barn, or some other wood shed designs. Whatever the type, it has to be big enough to fit all the essential rooms, especially the kitchen and bathroom. The smallest recommended size for a shed-type guesthouse is 14×20. If your shed is smaller, consider renovating it to have a bigger size—14×28 or larger—so that you can add more appealing fixtures than just the bare essentials.

Adding the Kitchen and Bathroom

A kitchen and bathroom are optional since you can offer your guests already prepared meals and invite them to your house for their bathroom needs. However, installing a kitchen and bathroom inside the shed will make the home away from home even more appealing for your guests. 

Providing a kitchen in your shed provides an option for your guests to cook meals if they want. You can include a mini-fridge and tea and coffee machines so that they can enjoy a beverage any time.

As for the bathroom, sure the option of offering your own bathrooms or portable toilets is there. However, do you think that decision will turn you into an Airbnb superhost? Not many people will appreciate leaving the comfort of their guesthouse to take a bath in your house. Some guests will also frown upon portable toilets. If you have a big budget, installing a functioning bathroom with toilets and a hot-water shower in your shed will surely impress a lot of guests. 

Installing Heating and Electricity

To provide maximum comfort, your shed needs to have a proper heating system. Insulating your structure prevents the heat from escaping, so it’s smart to use high-quality insulation materials like fiberglass and Rockwool. 

As for heaters, you can go with electric radiators, halogen heaters, or underfloor heaters. You can even go the traditional route and install a log burner, using firewood for burning.

The electricity in your shed has to supply the power needed for the usual lights, sockets, entertainment systems like TV and a music system, and whatever gadgets your guests may bring. 


Airbnb is a very popular alternative to hotels and guesthouses. Converting your unused shed into an Airbnb guesthouse will open many opportunities. Done right, this venture may be your ticket to tapping this profitable industry.

If you’re looking for excellent wood shed building plans for your next Airbnb project, Shed Mechanics has got you covered. We offer extensive guides, tutorials, and tips on anything shed building. Contact us now for a consultation!