Investors can boost income by converting garages or basements into Accessory Dwelling Units (ADUs) to serve as vacation rentals, capturing strong demand from tourists and short-term visitors. According to RISMedia, ADUs offer significant rental income potential, often generating thousands of dollars annually on platforms like Airbnb and VRBO. Homes equipped with ADUs also command higher values, increasing around 30-35% compared to similar properties without them, adding long-term equity to the investment.In Louisville, short-term rentals are growing rapidly but must comply with local regulations. Property owners need to register their rentals, pay an annual fee, and adhere to zoning requirements. Non-owner-occupied rentals require a conditional use permit, and there are rules limiting occupancy and enforcing safety standards. These regulations ensure short-term rentals coexist harmoniously with residential neighborhoods while supporting tourism.To maximize success on platforms such as Airbnb or VRBO, investors should focus on furnishing units thoughtfully. Durable, easy-to-clean materials like leather or microfiber upholstery are recommended for furniture to withstand frequent use. Comfort and style need to be balanced—a plush mattress and inviting décor enhance guest satisfaction. Tailoring furniture and amenities to the target audience, such as business travelers or families, creates a welcoming environment that encourages positive reviews and repeat bookings.By thoughtfully adding and managing ADUs as vacation rentals, investors can unlock both strong short-term rental income and long-term property appreciation, making them a powerful addition to multi-property portfolios.

To maximize success on platforms such as Airbnb or VRBO, investors should focus on furnishing units thoughtfully. 

Vacation Rentals & ADUs: Maximizing Income From Short-Term Stays

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Vacation Rentals & ADUs: Maximizing Income From Short-Term Stays

Vacation Rentals & ADUs: Maximizing Income From Short-Term Stays

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