Barndominium Investing -Capitalizing on Custom Rustic Rentals
Savvy investors continually seek promising niche property spaces, and the trending barndo scene shows ideal rental income potential thanks rising occupant demand meeting limited stock. Their signature country character and ample accommodations suit both short and long-term tenants at lucrative nightly or monthly rates.
Vacation rental demand particularly propels barndo investment returns above traditional housing amid America’s rural getaway travel boom. Amenity-packed barndominiums commanding $300-500 nightly consistently see peak season occupancy on par with luxury suites. Yet build cost per square foot compares affordably against higher-end homes.
For example, a 2-bed, 2.5 bath 1,500 square foot barndo near Texas’ wine country runs $3500 monthly or $500 weekend nights – totaling ~$65,000 rental income annually. This handily offsets average mortgage payments on a $400,000 custom build within 5 years before delivering decades of nearly 100% profitable returns after. And today’s work-from-anywhere workforce eager for pastoral settings happily leases these hip havens long-term too at sustained premium rents.
Here are the top 5 ways to make money from a barndominium property once you have it built:
1. Rent it Out – As discussed previously, barndos make popular short-term vacation rentals in rural areas and wine regions, commanding lucrative nightly rates. Works best located near regional tourism attractions.
2. Airbnb Experience Host – Alongside basic rental income, also generate money hosting paid specialty experiences leveraging property features/space for guests. Examples: yoga classes in big common room, cattle roping lessons in the pasture.
3. Wedding /Event Venue – Market your impressive open barndo with high ceilings and sweeping views as perfect for hosting parties, corporate retreats or dream rural weddings. Charge venue rental rates and service fees.
4. Shared Artist Studio Space – Sublet portions of your big barndo to creative tenants like painters, woodworkers, musicians needing unfinished industrial studio areas to produce their work.
5. Farm Store / Nursery Retail – Utilize the flex space and visibility to operate a roadside specialty store, bakery or plant nursery selling to passing tourists and locals.
Barndo investors understand that good design also pays, owning durable buildings appealing through fashion changes. Exposed beams and abundant gathering spaces never tire guests. Just redecorate soft goods like bedding and artwork to keep interiors fresh amid minimal structural changes. And utilizing trusted property managers liberate free time realizing this stable investment.
In summary, positioned in booming rural leisure destinations near activities that famlies and couples seek out such as wineries, golf and outdoors, thoughtfully finished barndominiums yield rewarding rental income only amplifying over years of minimal updating. Their current novelty ensures reliably robust occupant demand, especially for creatively converted short-term escapes. So capitalize on the craze by constructing your own charming country moneymaker!
