Airbnb - Is there a difference in value between basement and above garage?

[tag]

We are building a home and strongly considering adding an airbnb suite into the plans. We can do this as a daylight basement or above the garage. Either way, there will be a private entrance.

My concern about over the garage is the noise every time we would open or close our garage door. Also, I want to keep the house small and low....really don't want to build "up" unless absolutely necessary.
Our architect says people would be way more put-off by staying in a basement, which I didn't understand because I wouldn't mind - and there are some damn fine basements out there these days.

Which is better?
Would you pay more for one over the other?

[MayDay]

Sight unseen, over the garage, because there are a lot more icky basements than nice ones, and you can make anything look good in pictures.

I'd rather have a garage door open and close a few times then have stomping feet all day/night.

We have a ticket under garage and the noise is minimal.

[tag]

Thanks.

I was hoping that a daylight basement would make it ok - nice windows. Also, we intend to do high quality flooring, furnishing and also double insulation in walls and between floors throughout the whole house in order to minimize noise.

On the flip side, I also understand that there a range of garage doors out there you can buy - and some are much quieter than others. So maybe if we go that route we seek that kind of door.

[radram]

Remember many travelers do not regularly spend time in basements. They think of them as dark, damp, mildew infested black holes. Those of us who own basements with living spaces and proper humidity control understand that is not always the case.

I believe above garage would be easier to rent on Air BnB. Are the costs similar?

Always looking for life experiences. Where is the rental to be located? Please post when finished and open for business.

[tag]

Boise, ID. We'll totally do a discount for Mustache folks :)

[LeRainDrop]

Interesting.  I actually would have preferred the finished, daylight basement.  I think this is because in my house growing up, we had a really nice finished basement that felt very much like comfy home, and we also had a nice playroom above the garage, but it was loud whenever the door opened or closed.  Also, from a heating perspective, having the tenants below you would send their heat up to your floors, whereas if the tenants were above the garage, their heat would just go up through the roof, and they also would need to crank it more because below them would be a cold garage.

[TomTX]

It's not a "daylight basement".

It's a "Hobbit home."

;)

https://www.bobvila.com/slideshow/12-hobbit-houses-to-make-you-consider-moving-underground-27590

[BudgetSlasher]

Is there a difference in insurance cost and coverage between the two location for you? I know in the case of flood insurance the following comes straight from https://www.fema.gov/media-library-data/1432130966606-ec9a9793a03f4a4b5655de0db708a256/Fact_Sheet_What_is_Covered-508.pdf

Basements and Areas Below the Lowest Elevated Floor – Not Covered Under Building or Personal
Property:
 Paneling, bookcases, and window treatments such as curtains and blinds
 Carpeting, area carpets, and other floor coverings such as tile
 Drywall for walls and ceilings (below the lowest elevated floor)
 Walls and ceilings not made of drywall
 In certain cases staircases and elevators
 Most personal property such as clothing, electronic equipment, kitchen supplies, and
furniture

As a guest I personally would like the idea of apartment over the garage better than basement, just by way of being a little more separate  from the owners.

As far as noise goes, since you are building you can research and purchase quieter garage door openers. Also there are ways to sound deaden between the garage and the apartment overhead; something that you would need to do in a basement as well. After all, how many times do you come in go in a garage versus how often you walk across the basement ceiling, the dog goes scurrying across the house, or the kids go awkwardly stomping across the house. Where are you planning on putting the utilities? Air conditioning, furnaces, heat pump water heaters, dehumidifiers, and the like all can make a fair bit of noise and are also often located in the basement.

As for price . . . I don't know that I would pay more for an over the garage; but, I would be more likely to pass over a basement for a whole place or over the garage apartment that was similarly priced. For me a basement would have to have great reviews that specifically address how quiet it is to be considered.

[terran]

While in the end either would probably be perfectly nice I tend to agree with those saying that they would probably be more likely to select an above the garage AirBNB. Once you have enough reviews saying the basement is nice you're probably fine though. And it's garden level, not basement.

You might also want to take a look at construction costs. The basement is probably cheaper.

Another thought: What about both? Do the garage apartment and leave the basement unfinished, but otherwise built as if it would be finished. Then if you do well with AirBNB you can add another unit.

[Kay-Ell]

As a guest, I'd be more likely to book an apartment over a garage, than I would to book a basement.  That said, I do Airbnb as a host, and have found that you can never anticipate what each and every potential guest will like.  It's possible that you would get plenty of bookings in your basement apartment, and accumulate lots of good reviews, boosting your placement in search, and that it would be 100% worth it to you to have what *you* want, which is a basement apartment.

My suggestion is to do some research on the Airbnb app in your area.  Try to find spaces similar to the ones you are thinking of building.  Read the reviews to anticipate what some of the guest's issues and/or biases are going to be, look at their calendars to get a vague idea of how often they're booked (this is not going to be 100% accurate but will give you an idea).  But at the end of the day, build something you want to own.

[BudgetSlasher]

While in the end either would probably be perfectly nice I tend to agree with those saying that they would probably be more likely to select an above the garage AirBNB. Once you have enough reviews saying the basement is nice you're probably fine though. And it's garden level, not basement.

You might also want to take a look at construction costs. The basement is probably cheaper.

Another thought: What about both? Do the garage apartment and leave the basement unfinished, but otherwise built as if it would be finished. Then if you do well with AirBNB you can add another unit.

Where I am the basement would only be cheaper because it is expected that every house have a basement and so the only costs associated with the basement are finishing. But, again where I am, building a basement with all of the excavation and/or blasting, additional concrete, and beefed-up perimeter drainage should not cost more than stick framing a second floor on a garage.

[jpdx]

Garage, without a doubt, for these reasons:

+ Your guests will appreciate the privacy and separation from the main house
+ As a guest, being up high, for whatever the reason, feels more "fun" than down below
+ Noise issues (even if you insulate the floor joists)
+ I've rarely ever seen a finished basement that looks as inviting as upstairs (they tend to have ugly recessed lighting, minimal windows, and columns)
+ Building homes 'up' is usually more esthetically pleasing
+ You want access to the basement for maintaining your home (running wires, fixing leaks, fixing the furnace and water heater, etc)

[Syonyk]

Boise, ID. We'll totally do a discount for Mustache folks :)

Huh. Hello from under the inversion!

[tralfamadorian]

Garage, without a doubt, for these reasons:

+ Your guests will appreciate the privacy and separation from the main house
+ As a guest, being up high, for whatever the reason, feels more "fun" than down below
+ Noise issues (even if you insulate the floor joists)
+ I've rarely ever seen a finished basement that looks as inviting as upstairs (they tend to have ugly recessed lighting, minimal windows, and columns)
+ Building homes 'up' is usually more esthetically pleasing
+ You want access to the basement for maintaining your home (running wires, fixing leaks, fixing the furnace and water heater, etc)

+1 everything mentioned here

[Villanelle]

Assuming the finishes are comparable and it truly does have a decent amount of sunlight (fairly large windows, south-facing in the US, and not blocked by trees), I wouldn't care. 

I think it's interesting the people mention noise issues as a downside of basements, because my first thought with an over-garage unit was that it would be noisy due to the opening of the door. 

Maybe this is a bias of living for so long in Southern California, and only living in places with basements decades ago as a child.  But nearly every home has a garage with some kind of living space over it, and you can always hear the electronic opener every time it is used.

I am doubtful that you would see that much a difference, assuming the basement is nice and has light, so I'd probably go with whichever is cheaper to build. 

[cheddarpie]

I would build whatever option you like better for your family. Ultimately, this is your house and no one knows what the future of AirBnB will be as cities experiment with different regulatory approaches.

I have a basement apartment that I rent on AirBnB. It is fully occupied year-round, I make good money, I'm a Superhost, and I've never had any guests complain about basementy-things ... and it is truly a basement with all the basement issues -- dark, small windows, low ceilings, noise from upstairs, etc. I agree that an above-ground unit might be "nicer," but I've had no trouble renting my space as is. In my experience, AirBnB demand is based more on your geographic area (city/region) and specific location (neighborhood, proximity to attractions/services) more than anything else. Beyond that, write your listing to let folks set expectations appropriately (e.g., it's a basement), communicate clearly and kindly, and create a cozy space that is welcoming to your guests. Provide some nice amenities -- quality bedding, snacks, supplies, etc., and you'll be good.

[Dicey]

Apartment over garage = dragging luggage up stairs + climbing stairs in general. Doesn't work for everyone.

If you can build a walk-out basement (Is this what others are calling daylight basements? IDK), no stairs would be a plus. Since you're building, the extra insulation to soundproof it should be easy.

Give careful consideration to parking and access. If you can arrange it so you don't see or hear them come and go, that might be easier on you and your neighbors.

Hmmm, laundry facilities are nice, so if you can plan for them in the unit, it would make renting easier. And any type of seperate outdoor garden, patio or lounging area is also good.