Buying, owning and maintaining a house comes with a lot of fees. From property taxes to paying utility bills, the expenses combine to burn a hole in your pockets. But there’s a way to offset this expenditure by turning your home into a money-making property.
If you’re generating more income from your home than you’re spending on maintaining it, you’re profitable even before you’re done paying your mortgage. This isn’t impossible. Here are some easy ways to turn your home into a money-making property.
Open it to Airbnb
One of the best ways to make the most money out of your home (or even a spare room) is to list it on Airbnb, provided your local regulations allow it. Airbnb is open to any type of house, with any number of rooms, for any number of days, giving you the most flexibility and control on how and when you want to give up your space to renters. If you decide to rent your space on Airbnb, guests may be more likely to book if you have certain amenities such as an air conditioner, hot tub, or a fenced-in yard for pets.
"One of the best ways of turning your home into a money-making property is doing renovations in key areas,” said Bill Gassett, realtor and owner of Maximum Real Estate Exposure. “The kitchen and baths are two prominent areas of a home that both buyers and renters focus on. It makes sense that investing in these places would bring a high return on investment."
The best part? You can continue to live in your house and complete various home improvement projects while the guests are renting the space. Many owners rent out a part of their property (one bedroom or a tent in the yard) while saving the remaining areas for themselves.
For example, if you have a three-bedroom house, you can put two rooms up for rent and stay in the bedroom of your choice. This way, you won’t have to look for an alternate property every time guests are booking your place.
If you want to make more money, you can even rent out the entire house during the holiday season so large families or friend groups can book the entire place for a higher price.
Find a roommate
If you’re comfortable letting people stay in your house and need consistent long-term income, you can go one step further and get a roommate. Not only will you get regular rent money, but you can also split utility costs so you don’t have to bear all the expenses by yourself.
Make sure you find a compatible roommate before giving up your personal space, though. Living with someone 24/7 can be challenging if you don’t get along well. You might also not get a lot of privacy if one or more people you don’t know are constantly living on your property.
If you’re comfortable sharing your space this way, you can find multiple roommates, depending on the size of your house, and potentially make more money than you’re spending on taxes and bills. It’s a good idea to keep home insurance on your property in case you end up with unsavory roommates who may end up stealing from or damaging your property.
Offer storage space
Maybe renting out your bedrooms sounds too much. Don’t worry. You can still generate revenue from rent without having to part with your beloved beds. Consider renting out storage space, instead.
Do you have a yard? An extra parking spot? An unused shed? Rent them out. Sometimes people just want a safe place to store their stuff while they’re away, so you can capitalize on this need and offer secure storage on your property without having a guest intrude on your privacy.
“You can rent out storage space in your garage, or rent out parking for boats, RVs, or other vehicles,” said Brian Davis, cofounder at SparkRental. “My cofounder at SparkRental went so far as to host a foreign exchange student, and the monthly stipend covered most of her mortgage payment.”
But how do you find such renters? This can be easy today with numerous apps and websites that connect property owners with potential renters. For example, the Neighbor app on Android offers such services.
Write off WFH expenses
If none of the rental options work for you, you can always make an office out of your house so you can start generating income right from your couch. There are many ways to do this.
You can start an online business. This could look like launching an Etsy store selling small goods you make at home. Or you could launch a bigger dropshipping store where you source your products from a third-party vendor and sell them to customers at a higher price.
You can also get a remote job. More and more companies are open to the idea of remote work, so it’s fairly easy to land a WFH job in the field you specialize in.
If you prefer more variety and control, consider freelancing. You can work as a contractor in almost any field and work right from your bed so you can save money on the commute, office supplies and business clothes.
Once you start making enough money working from home, you can register your property as an office space. This has various tax benefits. You are allowed to deduct your home office expenses when filing your tax returns. As long as the house is your primary place of conducting business and you’re regularly using at least a portion of your house for some of the business duties, you may be eligible for deductions.
Rent out your yard or pool
Having a large yard and a gorgeous pool is a dream come true. But did you know they can help you make money as well? If you aren’t using your pool too often, you can rent it out for an hourly price on platforms like Swimply.
“You don't need to be a real estate mogul to make money from your home,” said Brittany Delacruz of TravelXBritt. “There are a number of relatively simple ways to turn your property into a money-making machine. Start by taking advantage of vacant rooms or outdoor spaces. You could rent out a spare bedroom on Airbnb or list your backyard on Glamping Hub.”
Similarly, dog owners are always keen to find a new yard they can rent for their pets to play in, so consider listing your yard on apps like Sniffspot. You can set your own rates and schedules so you can keep the space private when you want to use it and turn it into a moneymaking machine when you aren’t.
Start making money from your home
These ideas are just the starting point. There are many ways to turn your home into a money-making property, such as remodeling a home to resell for profit. Everyone has their own comfort levels and ideas to monetize their space, so we recommend experimenting with different revenue models and seeing what best works for your needs and desired income levels.