Whether you’re upgrading to a bigger building or find you no longer need your backyard shed to store lawn and garden tools, consider giving your old shed new life as a hobby room, guesthouse, or backyard retreat. With an ample budget, you can transform the space into a supplemental living area that rivals your own house, complete with electricity and luxe amenities. Yet even with a more modest budget, as some of these sheds show, you can cleverly transform an outbuilding into something beautiful and useful. If you crave more space in your house but an addition isn’t an option, a backyard shed with a few bells and whistles may provide what you need. Whether you’ll be upgrading, renovating, or starting from scratch, here are 12 outbuildings that prove that a backyard shed can be just as sweet as home.