6 ways your home can make you money
6 ways your home can make you money

If you’re a little strapped for cash or just thinking about earning some extra cash, look no further than home.

We’re also not talking about selling or increasing your expenses by taking out a home equity loan. After all, you worked hard to be able to round up a down payment and, if you bought recently, you braved a very hot housing market and probably had to outbid several buyers.

Instead, you can find innovative ways to make your home and property work for you. We’ve highlighted six businesses you can run from home – literally. Some don’t take much time or money, while others may require permits or investing in home improvements.

1. Rent your pool or garden

Do you have a garden pool that you rarely use? Why not rent it out and earn some extra cash?

People who rent the space have access to a private space where they can exercise, celebrate birthdays or test underwater equipment. For homeowners, renting your pool can help offset the costs of maintaining a pool — or so much more.

A company called Swimply will help you become a host and pass your information on to potential customers. They can help you market your pool, set a price, and vet guests.

Earning potential will depend on your location, type of pool, and additional amenities you can offer. Hourly rental rates start at $35 and can go up to $200 or more for a pool with hot tub and other perks. Last year, hosts on the platform earned between $10,000 and $20,000 on average, with some hosts earning over $100,000.

2. Become an Airbnb host

Airbnb is perhaps the best-known option on our list. It is a platform that allows you to register a second home, a guest house in your garden or a spare room to guests per night. You decide how often and when you want to open your home.

Nationally, Airbnb hosts earn an average of around $29,000 per year, with some hosts earning significantly more. How much you could earn will depend on your location and the type of space you have. Renting a single room inside your house with shared facilities may not pay as much as a finished basement with its own entrance, bathroom and kitchen or an entire house.

3. Share your home

With rents rising at a double-digit pace across the country, renting out unused living space can be a great source of extra income. The national average rent for a two-bedroom unit is $1,997, an income that can offset some or all of your mortgage payments or add to your emergency fund.

You don’t need to own a second home to become a homeowner. A finished basement with an independent entrance, a tiny house or a secondary suite built in your backyard can be transformed into a rental suite or a freestanding house.

You can also host a roommate in exchange for a monthly rent, with sharing of the common parts of the house. Linda G. was looking for ways to supplement her income when she came across Silvernest, a company that connects elderly landlords with roommates and helps set up a lease or roommate agreement. The arrangement worked well for her beyond providing extra money.

“I can get help with homeowner chores,” says Linda, who lives in Denver. “I have the comfort of knowing someone is home when my roommate isn’t working.” The average homeowner can earn around $10,000 a year, according to Silvernest.

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4. Store other people’s things

People tend to have a lot of things, but sometimes they don’t have enough space to store them.

“One of the cheapest and easiest ways to lease your space for extra money is to offer storage space,” says Leonard Ang, CEO of iPropertyManagement Leasing in San Diego. “Garages can be invaluable here if you can provide seasonal storage for vehicles such as boats, motorcycles, RVs and convertibles.”

You can turn an extra closet or spare room in your home into storage for smaller items like clothes or furniture. Be sure to take a detailed inventory of what is stored in your home with the landlord to avoid possible disputes in the future. You use a listing site like SpareFoot.com or StoreAtMyHouse.com to advertise your space.

Ang notes that the amount you can charge for storage varies by volume. Storage space can cost around $5 to $10 per month, while a basement or garage can cost $100 or more, especially if the space is climate-controlled.

5. Make your home a star

Do you have a spectacular kitchen worthy of a celebrity chef? A stately home reminiscent of a bygone era? Consider renting it for photo shoots, commercials, film productions, or private parties.

That’s what Alex M. and her husband did with their Los Angeles home, advertising it on a site called Peerspace. They’ve hosted everything from Anheuser-Busch social campaigns to ads for Care.com and Coors Light.

How much you can earn will depend on your location, the style of your home, and the needs of the production company, but Alex estimates that a homeowner could earn between $50,000 and $100,000 a year, depending on their level of business. space rental activity.

“We have a super remodeled, ultra-bright/white kitchen, so it works for a ton of different brands,” she says. “If you have a more ‘unique’ home, the pricing structure may be different, or you may not book as much.”

6. Rent a parking space

In some cities, parking spaces are limited. You can earn extra money by renting out your unused spot to a neighbor, student, or office worker who wants a reliable, safe space to park their car.

When she lived near the University of Georgia, Briana Knight Leonhard rented out the unused part of a long gravel driveway to campers and RVs. She estimates that she was making $500 a month during the college football season.

You can advertise your parking spot on sites like Craigslist or use one of the many specialty sites like Neighbor or Spacer. According to these sites, you can earn up to $200 to $500 per month by renting out your parking space, depending on your location and whether it’s indoor or outdoor.

What you need to know before you start

Before you jump into any type of business, there are a few things you need to know.

Check local laws

If you’re considering adding a rental unit to your home or renting out a spare bedroom, check local zoning laws to make sure it’s legal. Also check the landlord-tenant laws in your city and state.

Some cities have restrictions on home-sharing sites like Airbnb. These restrictions may include limits on the number of units that can be rented, establishing a maximum number of days a unit can be rented per year, the requirement of municipal permits or licenses, and the requirement that the property is a principal residence.

If you are building a tiny home or ADU, check with your local building permit department for permit requirements and to ensure your construction is up to code, whether you intend to rent it or not.

You’re gonna need insurance

You already have home insurance, but your current coverage probably won’t extend to damage caused by paying guests.

If you are renting out your home for activities, you will need insurance to cover damage or loss to your property, but you may also need liability insurance to protect you in case a guest is injured on the spot.

You’ll want to purchase landlord’s insurance if you’re renting out a separate bedroom or living space. This typically covers the rental structure, legal or medical costs associated with your property, and loss of rental income in the event of damage requiring repair.

Check with a knowledgeable insurance agent about the type of coverage you might need based on how you use your home.

Make sure the benefits outweigh the costs

You should treat all of these activities as a business venture, no matter how small. This means you must be willing and able to deal with customers and tenants, serve as a host, or be a property manager. Make sure you are ready for the task.

If you’re thinking about adding a rental unit to your home, consider the costs of building or renovating the space needed. The cost of adding a small home averages between $30,000 and $60,000, while adding a studio to a one-room ADU costs an average of $30,000 (although larger models including full bedrooms, kitchen and bathroom can cost up to $250,000).

Compare the costs to the income you can actually withdraw and see how long it will take you to recoup your investment. You don’t want to worry financially and find that you’re losing money instead of making it.