Your financial obligations do not stop after you managed to pay off your mortgage. With all the expenses you need to take care of, adding another income stream to help you pay the bills is nice. When money is tight or you could simply use more ways to save more cash, homeowners like you can turn to your home. There is no reason to wait for the property’s value to appreciate before you can leverage its money-making abilities. Even if you are still paying for your mortgage, there are ways you can earn cash out of your real estate without having to sell it.
Rent out the House
There are times when simply renting out a room won’t be enough to fill your cash needs. When time gets tough and you could use a bigger extra income, one of your choices is to rent out the whole house to tenants. This can be a viable solution if you have a spare home to go home to.
Renting your home technically makes you into a landlord. You will be responsible for looking for the right tenants, managing the property, and ultimately turn your liability, AKA your home, into an asset. This means you can use the payment your receive from your tenants each month to pay down your mortgage and possibly other expenses.
This is usually the first step of homeowners wanting to build their wealth. They start by investing in a property, renting it out, and allowing their income to pay for the mortgage. This helps kick start their real estate investment career minus the additional costs.
Remember that being a landlord comes with many responsibilities. You should not forget that once you start renting the property, you will need to change your homeowner’s insurance policy. This is true for both long-term and short-term rentals.
To get the best insurance for your home, you will need a landlord insurance policy. This is also known as the DP3 policy. This will give you, the landlord, liability and property protection against financial losses.
Accept Tiny-house Dwellers
If you live in the country or simply have a large lot all to yourself, why not consider renting out the space to tiny-house dwellers? Many people living in tiny houses move around a lot. They usually have difficulty finding safe and suitable parking where they can stay for a few nights at a time.
By offering your lot to tiny-house dwellers, you can charge anywhere between hundreds to more than a thousand dollars per month. This will depend on your location. Since most tiny homes live off-grid, you don’t usually need to provide them with anything other than a place to park their home.
You might think that the amount of space in your lot is your major consideration in renting the space to tiny-house dwellers. Of course, you want to make sure they have enough space for their comfort and privacy. You also ought to consider the county ordinances and zoning laws in your area.
Not all city or state allows homeowners to rent their lot to tiny-house dwellers. This is even if, technically, you are the owner of your property. So, be sure you do your due diligence when considering this option.
Use Your Home as an Alternative Storage Facility
Do you have an extra room, spare bedroom, or even an unused garage? Then you can use this opportunity to rent the space out to other people’s belongings. This can be a good way to put those extra spaces to use without having to let anyone else live inside your home.
People spend at least a hundred dollars each month storing their extra stuff in self-storage facilities. They might need a safe place to store their belongings, but not all are willing to shed at least a thousand dollars on self-storage alone. You can use this opportunity to put all those extra spaces at home to good use.
Budget-conscious renters are always looking for self-storage solutions minus the extra costs. You only need to make room inside your home and advertise this as a safe storage space for other people’s belongings. Just make sure you have an agreement to set the right expectations for your storage space renters.
These are but three ways homeowners can use their homes as a way to make extra income. This shows that you don’t necessarily need to sell the house or do major renovations just to turning your property into a money-making machine. With a little bit of creativity, you can start welcoming tiny-house dwellers, tenants, or even other people’s need for storage and start making money without letting go of your property.