Today when property prices have gone up so high we wait half of our life to afford our own place we can call home. When we finally succeed in getting our hands on a piece of property, we tend to think that now all our troubles are over. But, as in everything else in life, after some time spent in our new home, we realize we were wrong. True, we don’t have to live with our parents anymore or rent places that will never become ours, but now we’re confronted with mortgage payments, property taxes, utilities, etc. It seems like our homes are eating away our bank accounts. So what happens if we realize we took a bite we can’t chew? Are we supposed to get into a complicated and costly process of selling our house and wait for another ten years hoping to get back on our feet? The answer is that you don’t have to wait at all if you’re familiar with these tactics that will secure the passive income from your new home.
Expand & Invite
We’ve all seen too many movies where young people live in small houses inside their parent’s yards. Sometimes they even pay symbolic rent for that. We’re not saying you should invite your kids and charge them, but you can follow the logic and add a rental suite to your home. If you don’t possess a separate free-standing structure in your yard you can easily build one with today’s variety of montage houses. In case you don’t have a yard at all, maybe you can convert some part of your home, like a garage or basement.
There are a lot of options, but you must pay attention whether it’s legal to do something like that in your area. The regulations vary from area to are – somewhere you’re not allowed to build any additional space, and somewhere rental suits need to be separated from the rest of the house, with their own entrance, bathroom, and kitchen. If you get the green light from regulations there will certainly be some modifications you’ll have to make, so one last thing you need to do before you take action is to check the amount of income you’ll get from your suite. It would be awful at the end if you realize that the money you’re getting as a landlord is nothing compared with how much you’ve invested. That’s why you need to check the rental prices for your location and Rentometer tool can come in handy for that process.
Make room
If the regulations don’t allow you to establish separate suits or the idea just doesn’t suit you, next option is to rent an already existing part of your property. If you free space and don’t mind company and making new friendships, renting out accommodation is an easy solution. You don’t need to plunge yourself into the renovation process and the main requirement is a good location. By good location we mean that your home is close to some school, college, university or hospital, depending on which kind of tenants you’re targetting. The rest of the process is easy – decide which part of your home you’re gonna rent, spruce up a little bit, take some photos and let Airbnb or craigslist take care of the rest. Just make sure to rent the part of your home that will be inviting and comfortable – bedrooms with their own bathrooms are always more inviting then ones with shared facilities. And if you have more than one room to rent, the good idea is to turn them into a Bed and Breakfast. That way you’re gonna rent them weekly or nightly, which can provide better income then renting per month. This decision requires more of your involvement than just renting accommodation and there are some additional obligations included, so first make sure you’re aware of what you’re going into.
Let’s party
No, we don’t mean parties that will turn your home into a battlefield once they’re finished. We are more thinking about well-planned and well-organized events. This ‛scheme’ requires a bit more than a few spare rooms, but if you’re living on a large farm or own a decent acreage it can turn into a big payoff. Hosting events can bring you a large amount of money, and we’re not just talking about music festivals. In these times when escape rooms and all kinds of labyrinths and mazes have become so popular, more and more people are turning their properties into fun interactive spaces. That’s why it’s not enough just to pick a theme and put an add on the internet. You need to stand out from the crowd as someone who offers a unique experience. So when you plan that experience you’ll need to bring it to life by finding the experienced renovation company and this way not leave anything to the fate.
In this kind of events space plays an important role and if it’s not done right the whole experience will fall apart. We know that this requires a larger investment, but if you make it right that investment will seem like nothing compared to the income you’ll receive from the visits. Of course, some of your belongings (especially the valuable ones) will have to be put out of the way, but you can find some super easy storage solutions where they’re gonna be safe.
Everybody loves passive income, especially if they are not able to get through their property’s expenses. But the truth is that this income is not passive as it sounds. As you could see above, in every case you need to invest some first. Then there are boundaries such as legal requirements, your homes capacity, location, etc. Or maybe you just don’t like the notion of unknown people roaming around your property nor being anywhere near it? That’s still not the reason to give up. Maybe instead of finding the storage for your things you can provide one for others? Possibilities are endless, so make the first step to your new lucrative home.
