Category Archives: Renting Out A Room

Ways to Turn Your Home Into a Money-Making Property

Income Streams, Renting Out A Room

 

This article was contributed to Leisure Freak by Amanda Hill.

Owning a home is seldom cheap. Even if you take care of property taxes, utilities, and mortgage payments, you will still need some leftover funds for repairs and renovations. Fortunately, your home doesn’t have to eat up your money but can also help you generate it. This article will go over different ways to turn your home into a money-making property and what to consider before you do so.

Two people holding a model of a home.Image Source

How to turn your home into a money-making property

The main trick to turning your home into a money-making property is understanding its potential. Every house, be it small or big, has some way to monetize it. In fact, most passive income ideas for retires rely on using extra space. The sooner you can recognize the potential of your home, the sooner you can start generating some serious revenue.

Rent out a suite

The easiest way to start making money from your property is to add a rental suite to it. Mind you – depending on where you live, you might have to adhere to some legal regulations and standards. But, if you can, adding a suite and renting it out is an excellent way to earn some extra bucks. Some homes already have the capability for a rental suite and only require minimal renovation to make them operational. On the other hand, there are those where adding a rental suit means building it from the grounds up. So, try to plan out what your property needs before you start renovating.

Researching before the renovation is also essential for organizing your everyday life. It is usually a good idea to move out of your home during the renovation, as they will be too loud. And while it is possible to organize a move in seven days’ time, you really ought to plan it out as soon as possible. You can even use the renovation as an excuse for an early vacation.

Rent out accommodation

If you cannot rent out a full-fledged suite, you can always opt for providing accommodation. A spare bedroom in your home can easily be turned into a room-for-rent, especially if it has its own bathroom.

If it doesn’t have one, you might still be able to rent it. Areas close to universities are always filled with young professionals looking for a quiet room to rent out. But if you go with the shared bathroom option, know that it will be at a lower price. Furthermore, you might have to organize your life in accordance with your tenant. So, all in all, it might bring you some headache.

Run a bed and breakfast

Running a b&b can be a great idea if you live in a tourist-heavy area. The more bedrooms you can spare, the more tourists you can accommodate. But, keep in mind that running a bed-and-breakfast isn’t simply about collecting money from tenants and cooking them breakfast. To run a decent B&B, you have to consider numerous factors and take care of many problems in advance to run a decent B&B. Do yourself a favor and read up on what running a bed-and-breakfast is truly like before you go at it.

Rent out storage space

Does your property come with a garage? If so, a garage can be an easy way to turn your home into a money-making property. You can easily use it as rentable storage space. A lot of people need extra storage room, either for their everyday items or something larger like their car, boat, or furniture. This can be especially useful if you live in a densely populated area lacking storage space. In that case, renting out your garage can be a great source of revenue, especially if you can guarantee safety. You can insure your garage with minimal investment and make it viable storage space. Just make sure that you take care of the legal aspects of storage and take on tenants that seem trustworthy.

Gardening

Let’s say that you have no extra room for any renting. Is there a way for you to utilize your property to generate revenue? Of course, there is, especially if you have extra time. Namely, one of the options is to use your property as a garden. You can easily turn your home into a functional garden with modern gardening tools. Homegrown, well-maintained, zero pesticide food is always in demand. And you’ll likely be able to get a reasonable price for it, especially if you tackle your marketing correctly. The bigger your property is, the more space you can use for gardening. But, if you have limited experience, we suggest that you start small and calculate your expenses carefully.

Run a home business

Gardening is only one instance of a much broader spectrum of using your property for revenue. Namely, there are tons of business ideas where your home can be all you need. Depending on your skills and preferences, you can easily find work that you can do from the comfort of your home. To give you some examples, you can:

  • Work as a translator.
  • Film online tutorials.
  • Make travel plans for people.
  • Take care of pets.
  • Take care of kids.
  • Create and sell items.
  • Design clothes.
  • Massage people.
  • Train people.
  • Plan events.

The more you look into it, the more you will see just how many jobs are available and surprisingly lucrative if you own a property.

Final thoughts

To turn your home into a money-making property, you need to have a firm understanding of the finances behind it. Extra taxes will likely be a part of your business endeavor, as well as additional expenses for utilities and renovation. So, do yourself a favor and have a clear idea of how much money you need to make for your business to be profitable.

Thank you Amanda Hill for contributing this informative post which provides timely money making tips to Leisure Freak.

Author bio:

Amanda Hill worked as a business consultant and project manager for over 20 years. She now focuses on raising her daughters and writing helpful articles for companies like number 1 movers.ca. Her main interest lies in commercial relocation and commercial planning.

Income Streams: Tips for Successfully Renting out a Spare Room

Income Streams, Renting Out A Room, Retirement Business

If renting out a spare room or suite in your home is on your mind, you have lots of company. Many homeowners are looking for supplemental income in retirement or are saving for that milestone. Shared households are more common than most people realize. More than 22 million U.S. households fell into this category in 2012, meaning they included a primary resident and at least one other adult. Sharing is particularly popular with the younger crowd, 9.7 million of whom are between 25 and 34.


Income Streams: Tips for Successfully Renting out a Spare RoomPhoto by Kate Ausburn on Unsplash

Two Common Options

Homeowners can choose between two basic paths when it comes to renting out space. Some find hosting overnight or short-term guests through sites such as Airbnb. Hosts typically set a per-night price that includes essentials like clean linens. Their listings include photos and prices. Homeowners receive payment, minus a service fee, via electronic options and are able to message guests prior to arrival.

The second option is a long-term rental to one or more occupants, beginning a homeowner’s journey into real estate investment in a sense — or at least letting them dip their toes in to see if it’s something they’d enjoy. The homeowner rents space using a rental agreement that specifies the exact space, price, duration of occupancy, and any other important terms.

Regardless of which option is the better fit, a homeowner who becomes a landlord will need to manage the rental and maintain an arrangement that’s stress-free. Here are some important tips on how to do just that.

 

Understand Local Laws

One early have-to is being aware and keeping abreast of local laws related to rentals. Many locales have specific regulations on what they allow, the permits required, and occupancy taxes. Fines for non-compliance could be hefty. Communities typically restrict the number of occupants in a home. Some also require that each individual have a certain amount of square footage of space. If remodeling to rent is a consideration, it’s essential to check on rules regarding access to exits in case of an emergency. Sites such as Airbnb might offer guidance on requirements in major cities. However, a wise homeowner is one who regularly checks local regulations for updates.

 

Get Your Home Ready

Preparing to rent space requires making decisions to get a home ready. A major one is whether you’ll need to remodel or add one or more rooms. Homeowners with children typically have privacy concerns. The way to start is to go through each room and figure out what realistically needs to be done to make the property acceptable for a renter.

Getting ready might require updates such as a bathroom renovation. Ensuring the safety of possessions could require purchasing a fireproof safe. If kitchen privileges will be available, now is the time to replace that aging microwave.

 

Determine a Rental Rate

Sites like Craigslist are a good resource for learning about the local market. A homeowner should be sure to wrap into the rate the cost of home maintenance, utilities, and insurance.

For long-term rentals, some homeowners quote a weekly rent to make the rate more appealing.

 

Get Everything in Writing

Hosting sites take care of this in their terms and conditions. A landlord’s rental agreement should be written and signed by both parties. It should specify:

The dollar amount of the rent.
Date when rent is due.
How utility usage will be charged.
Usage specifics for common areas such as the kitchen and the laundry room.
Any special concerns such as cleaning or parking.
Talk to Your Insurance Agent.
Homeowner’s insurance might not cover injury of a renter on the premises or any losses from theft. An insurance agent can recommend the right policy.

 

Find the Right Renters

In addition to placing free ads on sites such as Craigslist, consider some fee-based sites. Many first-time landlords are surprised, however, at how well word of mouth sometimes works for finding renters. Great prior or present tenants are sometimes perfect sources to ask for suggestions of anyone they know looking for space to rent.

An interview and reference checks are the first step. A tenant credit check should follow.

 

Get a Grip on Taxes

Many would-be landlords don’t realize that rent might be subject to federal, state, and/or local income or other taxes. This applies whether the tenant pays directly or a hosting service collects it.

Landlords might also lose a property tax exemption. However, keeping accurate records can minimize taxes by documenting deductible rental expenses.



Wondering exactly how to get started with renting out your spare room? A local real estate professional can offer important tips on how to make the most of your experience as a landlord for short-term guests or long-term renters. An agent’s input is particularly valuable when considering whether to spend money on your home to create a suitable rental for meeting retirement goals.

 

This informative article was contributed to Leisure Freak by Preston Guyton.

Preston Guyton is a native of the Grand Strand and Broker in Charge/Managing Partner of CRG Companies.