If you are looking for clever ways to earn cash from your house without selling your home, there are a few unique options worth considering.
Since owning a house is out of reach for about 61 percent of Americans, according to a study from CraftJack, creating a plan to lower the financial burden is a goal many share. By generating cash to help cover monthly payments, you might actually move the needle on making homeownership a possibility.
The options for earning money from a house depends on the location, size, features, and time you have to manage a new income source. However, check out the following list of ways your cozy abode could become a cash cow.
Rent part of your house.
Part of your home could become a part of the sharing economy. Think Airbnb, Booking.com and Vrbo; these platforms have revolutionized how we travel and stay. Our family rented a series of Airbnb properties on a recent cross-country trip. And we stayed in a modern condo, a rustic retreat, log cabin, and single-family homes. The variety and personal attention from owners makes these stays fun for us.
If you have a room over the garage, a finished basement with a separate entrance and bathroom, or have the budget to invest in building an accessory dwelling unit like a mini cottage in the backyard, renting to travelers can create another source of income. For those who live near a tourist attraction or near a popular vacation destination, this option can be a wise investment of time and money to get the space ready for renters.
Getting a space ready for rent.
Before you enter the sharing economy, your space might need some work. Evaluate the space and create a reasonable budget, adding 10 percent to your overall estimate for surprises. Then make a careful list of everything that needs a little touch-up, prioritizing the projects by what’s crucial. Then, consider seeking out creative ways to save money, like visiting the local Habitat for Humanity ReStore for furniture and home decor.
Evaluate similar properties online to see a reasonable rate that you could competitively charge. If the return on investment will pay you back within a year, it may be worth the initial investment. The cost of upgrades and the time it will take to manage the property and help renters while they are staying on the property needs to be worth it.
Managing a rental includes a thorough clean-up after each guest—nobody wants their guests finding last Christmas’ fruitcake under their bed. Having reliable Wi-Fi is essential to modern travelers. Plus, add good quality linens, a coffeemaker (because we all need our morning cup of joe), and local guidebooks are usually appreciated, too. If there isn’t a built-in closet, a wardrobe or wooden clothes rails is another essential to most travelers who stay longer than a night.
A quirky piece of art here or unusual amenity like a bowling space can become unforgettable. It’s also an Instagram-worthy moment that spreads the word about your rental.
Rent unused storage spaces.
Unused storage spaces like a garage, garden shed, or basement (with separate entrance) could turn a tidy profit. Even an extra parking spot in a congested area can add to your household’s monthly income. Space in today’s modern world is at a premium. There are people just like you and me searching for somewhere safe to store their possessions. They could use your storage solutions as their sanctuary.
For example, I rented out a parking space for a few years while living in a condo. It was nice to get that check each month. And, we currently rent a garage across town for our construction equipment because we don’t have a garage on our old house property. When it was built in 1903, there wasn’t a need for a garage, and there wasn’t even a bathroom.
If time and cash-on-hand to invest in creating an Airbnb is an obstacle, it takes less investment of time and money to transform an extra storage space into a rentable storage space.
No matter if it is your parking space, loft, or garden shed, storage space rental websites like Neighbor.com make these overlooked spots accessible and affordable for use.
What do renters want from a storage space?
When searching for storage spaces to rent, prospective renters want more than just an empty box to put their stuff.
They also crave security. It’s essential to ensure their items are secure. Security features like locks, CCTV cameras and sturdy doors are highly desirable.
Size and accessibility also play a crucial role. Rental customers need the peace of mind knowing their grandmother’s antique chaise lounge or their expansive comic book collection will fit comfortably. So provide accurate dimensions and photos of the space.
In addition, make sure the space is accessible and available for renters to access at reasonable hours. A ground-level location or vehicle accessibility is often ideal.
Cleanliness and dryness are also top priorities. Nobody wants their belongings sitting damp, moldy, or dusty in an unfamiliar place.
Although this storage space might just seem like another corner of your home to you, it could mean the difference between saving their treasures or not.
Rent your garden.
If you don’t have a green thumb or have more land than you could ever possibly use, and it’s becoming a headache to manage, then consider renting part of it. Urban gardening has become all the rage. Plus, many city dwellers or apartment renters with an affinity for parsley or kale gardening often lack space.
Rent your garden out to these green-thumb enthusiasts to bring in extra income and keep your yard in top condition. Whether it be budding horticulturists looking for practice, or farm-to-table fanatics searching for organic produce, your garden could provide just the solution for their needs.
Pitfalls to Dodge: Steering Clear of Garden Rental Snags
Renting out your garden could be a highly profitable venture, but it comes with its share of risks and pitfalls. For a stress-free rental experience, here are some potential garden rental snafus to avoid.
First and foremost, be cognizant of your legal responsibilities. Make sure that you’re familiar with local zoning laws and homeowner association rules before inviting gardeners into your space. Some areas may impose restrictions on commercial activities or have special regulations concerning pesticide usage and composting.
Make sure that you and the tenants renting out parts of your garden enter into an agreement outlining which parts can be accessed, what can be grown and maintained, etc. Even though your lawn might serve as their lettuce field, it remains your property and must be treated as such.
Be prepared for the unexpected. Gardens are living ecosystems, and unexpected events may arise that disrupt them. Pest invasions, plant diseases, and inclement weather are all potential sources of disruption that could create conflicts within a garden community. Make sure your agreement includes provisions to cover such situations. It would be a headache to be left picking up the bill for things such as locust invasions or tomato blight outbreaks when they arise.
Rent your home to Hollywood.
Have you ever imagined your living room as the setting for an dramatic monologue or your kitchen as the location for a cooking show? Well, renting out your home for a production could be your ticket into Tinseltown…sort of.
Renting your home as a location can be another creative and profitable way to bring in some extra income. Production companies are always searching for unique real-life locations to film everything from films, TV shows, and commercials to music videos. Your home could be exactly the spot a director needs for his or her next hit. For example, I’ve known someone who rented a home for a season of the Bachelor and another friend who rented his home for a crime show.
However, keep in mind there are legal implications and considerations involved. Make sure you understand any local laws or homeowner association restrictions, and always have an agreement in place prior to saying, “Action!” on your property. Most producers and directors will want to move furniture or change aspects of the property to suit their vision, so be sure to know their intentions and get everything in writing.
So your house can be more than just a place of refuge. It can also be an income generator and new profit center for your family. From harvesting fresh produce in your garden or hosting TV shoot in your kitchen, your home offers unique potential income opportunities.
Remember to always research, plan, and do your homework. And, make sure your home isn’t changed in any way that you don’t want.
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