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When you purchase a home you own an illiquid or non-liquid asset, which means that it can’t be converted to cash easily. That being said, it does not mean you can’t make money off your house to help pay off your mortgage or to simply have supplemental income.
Here are four easy and creative ways to make money off your house.
1. Rent Out a Room
This might seem obvious, but renting out a room, guesthouse, or backhouse of your home is an easy way to help pay off your mortgage by having immediate and consistent cash flow each month. Furthermore, roommates help split your utility costs and can help with chores around the house, which saves you both time and money.
A good rule of thumb is to charge 0.8–1.0 % of your home’s market value per month for each roommate. For instance, if your property has a value of $500,000 then your rental rate should be between $4,000 and $5,500 per month.
That 0.2% percentile difference does have an impact. So, it’s suggested that if your property’s value is under $375,000 then charge closer to 0.8% while if your property value is over $375,000 consider a rate closer to 1.1%. You can always look into Financial Services Outsourcing for guidance.
2. Offer Storage Space
If you have an external shed or a garage that isn’t used, then contemplate renting that space out as a storage unit. On average, storage units cost $90.00 a month. In most cities, there are plenty of people in search of affordable alternatives.
You have options when it comes to renting out a storage space. You can allow short-term rentals for college students between breaks or those who are moving in-between spaces and need to temporarily store their belongings. Alternatively, you can rent out an entire garage or driveway to a boat, RV, or camper.
3. Charge for Parking
This option is very much location dependent, but in densely populated areas you might want to share your driveway or parking space for short-term or long-term. Furthermore, if your home is near popular weekend events such as sports events or a music venue, then you can charge people to park in your driveway. If it’s a group of related people, try to charge for multiple parking spaces since they can block one another in.
This can easily add up to several hundreds of dollars for each event.
4. Create Products + Get a Tax Deduction
If you’ve always wanted to launch your a personal small business then why not start from home? No, you don’t have to be the next computer whiz building cutting-edge technology in your garage. You can though follow your passion or side hustle and use a space within your property to create your own business. Here are some ideas:
Bake treats and deserts
Create jewelry
Produce artwork
Refurbish or construct wood
Even better, depending on the space, you can get a tax deduction for having an exclusive business space. Just make sure that your home business meets any certification, licensing, or permit requirements.
For more unique ideas on how to make money with your home, see Homebuyer’s visual below.
