Are you living in a house that drains your pockets every month? Â If yes, you are doing something wrong.
If you want to make money from a house you already own, you have to look at your home as a business; an income-generating business with the potential to enhance your financial life, instead of another bill.
Wisely making use of your existing investment to generate cash flow is a concept born from the sharing economy. Your home may be your sanctuary, but it only makes sense to use your creativity in making it pay for itself.
There are a few considerations that you might need to include. If you live in a deed restricted home or have a home owner’s association, you will need to confer to make sure you are abiding by their rules. You will also want to check with local authorities and inquire about any fees, licenses, or other requirements.
Here are a few strategies to make money from your house. Choose those that fit your specific situation or use them as a springboard to develop your own:
Airbnb
If you have a good amount space in your home, rent it out to guests. Airbnb is a marketplace that brings travelers and homeowners together. This tactic has the potential to help you earn an additional $500 per month.
Office Sharing
Office sharing has become quite a profitable business. You can use your existing office, or transform a spare bedroom and outfit it for those that require the use, but don’t have the where-with-all to have their own. Is the basement the forgotten part of your house? Create an environment with multiple desks, and you can have office renters that bring in $300 per month, per renter, which can add up quickly.
House a Foreign Exchange Student
Housing a foreign exchange student for six to eight months in a spare room adds money to the budget. You will need to coordinate and register with your local universities or colleges in your area, but you can earn up to $200 per week for this venture.
Rent a Room
You can also take the idea of renting to the next level, by simply renting out your spare rooms full-time. This can be done on a month-to-month basis, or go all the way and establish yourself as a kind of local bed and breakfast.
Rent Your Driveway
Rent out your driveway or extra parking areas. ParkAtMyHouse.com is the biggest online marketplace bringing those that need parking spots to those in the community that have them for rent. Of course, the income depends on the value of your location.
Host an Event
Host special (and fun) events, such as wine and cheese tasting parties, or backyard entertainment for adults. You can charge up to $25 per person or more.
Storage
Ever thought of sharing your garage, attic, basement, or even closet storage areas? You can charge less than an average storage unit, and bring in some added cash. StoreAtMyHouse.com is a great online place that lets you post pictures of your storage area(s) and charge what you want.
Grow Veggies
Community backyard vegetable gardens are becoming quite the trend, especially if they are organic. Rent out your yard for a communal garden, and incorporate partnerships with local restaurants to sell some of the produce. This is a win for everyone.
Whichever revenue generating idea that you choose, always keep good accounting records. This includes all overhead costs to offset the profits. You will need to report any income on your taxes. Take note that if you are renting out any part of your physical home, you will be able to write off a percentage of the overall home costs, including mortgage, insurance, and upgrades specific to the income area.
Maryann Reid is the digital managing editor of BlackEnterprise.com and the author of several books published by St. Martin’s Press. For more, please follow her @RealAlphanista.