Earning More Saving

3 Ways to Make Extra Money Using Your Home

A home can be an extremely valuable asset, especially if you’re working on paying down debt. While you’re probably used to putting money into the home for things like maintenance, taxes, insurance, and that pesky mortgage, it’s also possible to get some cash back out of it that you can put towards your debt.

If you’re not super picky about sharing your personal space, check out these three options for turning your home into a money-making machine.

1. Open Your Doors to Travelers

When you’ve got a spare bedroom you’re not using or your backyard is the perfect place for pitching a tent, renting the extra space out to vacationers is an easy way to turn your home into an income stream. On Airbnb, you’ll find listings for everything from a spot on the couch in someone’s living room to entire homes available for short-term rentals.

Signing up for an account is free, although Airbnb does charge you a small service fee every time you complete a successful rental. You have the power to set the rates as low or as high as you’d like so the earning potential is virtually unlimited. You can even charge a security deposit if you’re worried about guests damaging the home or any of your personal property.

 

If you own a second home that’s sitting empty or you’re planning to be away from home for an extended period of time, you’ll also want to check out sites like VRBO and HomeAway, which offer long-term vacation rentals. Again, you’ll pay a fee to use these services but the upside is that if your home is in a prime vacation destination you may be able to get more money out it than you would just by renting out a single room.

2. Rent out Space to Packrats

Inviting complete strangers to stay at your home isn’t for the faint of heart, so if you’re feeling a little nervous about the idea you could settle for storing their stuff instead. Storeatmyhouse.com matches up people who have too much stuff with people who have too much space. In exchange for allowing someone access to your attic space, bedroom closet, or basement, they pay you a fee.

It’s free to place an ad on the site and the terms of the rental agreement are completely up to your discretion. For example, you could specify how long they can keep their property in the space, what types of property are acceptable, and what kind of access they’re allowed to have. It’s also a good idea to specify what kind of liability you bear if something happens to their stuff. Without a written agreement in place, things could get sticky if there was a fire or a break-in that resulted in a loss to the renter.

If you live in a city where parking space is a premium you can even rent out your driveway through JustPark.com. You won’t pay anything to create your listing and drivers are required to cover the 25% service fee that JustPark charges. If you’re not sure what to charge, you can compare what others are asking in your area.

3. Put Your Home in the Limelight

The days of filming movies and TV shows on a soundstage are all but gone as Hollywood increasingly takes productions on the road. That can be a boon for homeowners who are looking for ways to score some extra cash. If you’ve got a picturesque property, you could vault it to stardom by renting it out as a filming location.

As far as the upsides go, there are quite a few starting with how much money you can earn. It’s not unusual for major productions to pay homeowners a going rate equal to your monthly mortgage payment on a daily basis. If you’ve got a $1,500 or $2,000 mortgage, that’s some serious cash you stand to earn without having to put in much effort.

Aside from the money, there’s also the notoriety that goes along with having your home featured in a film or television show. Not to mention you also get to enjoy a getaway at a nearby hotel on the production company’s dime. On the flip side, there’s the possibility that your home could be damaged by accident or that your neighbors may complain about the hustle and bustle. If you’re comfortable with the risks, check out a site like FilmingLocations.com to find out how you can get in on the action.

Make Sure You Toe the Line Legally

It’s important to note that each of the three methods we’ve suggested for turning your home into a source of income are designed for homeowners only. If you rent, you could run into major trouble with your landlord if you do something that violates the terms of your lease. You’d need to clear it with the property owner first to make sure you’re not stepping out of bounds.

Homeowners also need to make sure they’re minding their Ps and Qs. If you’re renting out part of your home or your backyard through Airbnb, for example, you’d want to check your local laws to make sure it’s not a violation of any municipal housing ordinances. The same goes if you’re leasing out storage space or part of your driveway.

You also have to make sure that you’re reporting the income properly on your taxes. As long as you’re not renting out your home or one of its rooms for longer than 14 days per year, you don’t have to report any money you receive as income. If you’re thinking of renting it longer than that, you’d need to check with a tax expert to find out what the financial implications would be.

How do you make extra money on the side?

About the author

Rebecca Lake

Rebecca Lake is a personal finance writer and blogger specializing in topics related to mortgages, retirement and business credit. Her work has appeared in a variety of outlets around the web, including Smart Asset and Money Crashers. You can find her on Twitter at @seemomwrite or her website, RebeccaLake.net.

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