For many of us, homeownership is a source of pride. Your home is also the most significant investment you will make in your lifetime. Homeownership also offers some pretty impressive financial benefits. With every mortgage payment you make, you're building equity and creating wealth for yourself. Equity is the primary advantage ownership offers over renting. A mortgage benefits you while paying rent benefits your landlord.
As a first-time buyer, your priority is to buy a property with a mortgage that fits your budget. For many homeowners, creating an at-home side hustle or using your home to generate some additional income can help you pay your mortgage or other costs like your real estate taxes, homeowners insurance, or even to pay for upgrades or renovations to your home.
If you're a new homeowner or just someone who would like to create a little revenue from your property, your house can generate the additional income you need to take that dream vacation or pay for your new kitchen!
In this post, we're going to look at several income-generating opportunities to help you decide which might be right for you!
With a little creativity, your home can contribute to your income and be a place to live. Before you make any decision check your local building code for any restrictions your city or town may have for residential homeowners. Also, if you live in a condo, coop, or have a homeowner's association, they may have their own rules on short-term rentals.
Here are seven potential ways to make money with your home.
Whether you live alone, travel for extended periods, or take a family vacation, you can earn some extra income as a residential homeowner. Renting your home through sites like Airbnb.com or HomeAway.com is a relatively simple and reliable way to make some income on the side. You'll need to register to create a free listing where you can set the rental amount, dates of availability, and a refund policy, should a reservation be canceled. You'll pay a 3 to 5% service fee for confirmed rentals based on the rental amount.
Don't want to rent out your home? If you live in a city with a lack of parking, consider renting your driveway! Tourists, renters who don't have a designated space, or commuters tired of battling for a metered spot are all your potential customers. Check out JustPark.com or CurbFlip.com to learn more. Like Airbnb, these sites charge a fee for short and long-term bookings.
Ever wonder how those great homes from your favorite TV show or movie made it onto the screen? You know the ones we're talking about that Hollywood rambler that was home to the Brady Bunch or the red brick McMansion that Home Alone made famous.
If you think that your home has the right stuff, you might be able to cash in by connecting with location scouts for TV and film productions. How do you get started? Have professional pictures taken of your home and send them along with your contact information to local film commissions, location scouts, and film commissions in your area.
There is an affordable housing crunch in various markets throughout the country. Some municipalities have changed zoning laws to allow residential homeowners to create and rent alternative dwelling units. If you live in an area where it's legal, you can add a rental suite to your property. If you don't have the space inside, consider converting the garage, or if you have the space, building rate free-standing structure. Make sure to check with your local building department before you renovate or build.
If you live in an area like the beach or a ski resort area, residential homeowners can often earn significant rental income in a single season. If you can move out for the season or are planning on taking an extended vacation, you can make a year's worth of mortgage payments in a season. If you don't live in a resort area, being close to a college, hospital, big employer, or an area with a tight rental market can make your property desirable.
Maybe your kids have grown up and moved out, and you have several rooms available. Why not maximize your income by turning your home into a Bed and Breakfast! Being able to rent our several rooms in your house nightly or weekly can be a lucrative option. Make sure you research what it takes to start and operate a B&B before you open!
Your home might be the perfect place to start a small business. After all, Silicon Valley is full of stories about computer companies like HP getting their start in the garage! Running a business from home can be convenient and offer the added bonus of home office tax deductions. Some home businesses require certifications, licensing, or permits to operate. Check with your local government.
There are two critical points to consider for residential homeowners before opening your home (or driveway) to renters. The first is insurance. You may void your policy in the event of a fire, flood, or other catastrophes if you're using your home in ways not outlined in your homeowner's insurance. If you choose to use your property to generate income, acquire the proper insurance.
Another consideration is to make sure you can handle it. Renovations can be expensive, and not everyone is cut out to host a Bed and Breakfast. However, if you've done your research and carefully thought out your decision, you can start using your home to generate extra income today!