Most people never considered the fact that you can turn your home into a money-generating space. You don’t need us to remind you about the benefits of generating a little bit of income so let’s show you what these money-generating spaces might look like.
- A beautiful living room
- An office space
- A spacious garage
- An unused shed
- A pool house
- A guest house
- Storage room
The possibilities are endless. If you can get creative, you can almost turn every single corner of your house into a passive-income generating machine. But before you do that, just make sure that you check with your local authorities if you’re allowed to do that.
Now let’s get into the 5 ways to make extra money by renting out unused spaces.
1. Get a housemate
Bringing on a housemate is arguably one of the most stable and lucrative income you can get by renting out this space.
Yes, the downside is that you’ll have to share the common areas like the kitchen, the living room, and possibly the bathroom with another person. However, that is not to say that this person that you bring in is not a fun person to hang around with. The best-case scenario is getting a friend to stay with you and both of you are guaranteed to enjoy this period.
In this case, you have to remember that you’re a landlord and a housemate. If you need that money to cover the rent, you have to verify their income and history before agreeing to let them in.
2. Rent a room on Airbnb
If you don’t want to get a long-term housemate, the next best alternative is to list your space on Airbnb. The benefits are that you’ll get to meet a variety of people from different background and countries. The downside is that because this range is so huge, some people have different values and might do things more peculiarly. And as a host, you’ll still have to accommodate that.
Another thing is that once these travellers leave the space, you’ll need to clean up after them. This could be quite a chore as most travellers only stay at a place for one or two days.
If you can bear with these items, it’s also another lucrative business to be in. A survey reported that even an average host can easily earn up to RM433 per month.
3. Rent out storage space
Due to the congestion in the city, it makes storage space a luxury for most people. It has made self-storage units an expensive space to pay for. But in this era, you’re allowed to step in and undercut what these corporations are charging their customers.
All you need to do is find somebody who desperately needs some storage space and finalise the deal. That’s all. You don’t need to maintain anything whatsoever, no extra electricity or water bills, just the effort to clear out an entire room and allow your customer to fill it with their items.
4. Rent your space to a production company
Whether it is a film production or for photoshoot purposes, these production companies are always looking for somewhere fresh that they could shoot at. Your home doesn’t even have to be a mansion or at a prime location, the more unique and quirky your place is, the more likely it’s going to get selected for special projects.
The caveat of this strategy is that sometimes, it can be months until a company reaches out to you. It might be a long shot but because these production companies have budgets to spare, you’ll get compensated nicely for just a shoot that lasts for a few days. While being patient, you can always use one of the other strategies!
5. Host a foreign exchange student
Hosting a foreign exchange student is not for everyone as this period could range from a few weeks, up to a solid few months. It will be quite a huge commitment as you’ll be spending most of your time under the same roof. It may even require you to offer meals, private bathrooms, or even laundry services.
This method also heavily depends on the location of your property. The closer you are to a university, the better it is for the student.
It is an amazing way to learn about a new culture and a new language if you’re up to the challenge.
Bringing it all together, the two important points to consider before you open your doors to the world is first, the insurance risk. Make sure your insurance policy covers the way you’re using this space.
And second, make sure that you’re only taking on what you’re able to handle. Not everybody can handle guests from all over the world and their assortment of practices. But once you’ve accepted these considerations, you’ll be on your way to making a good amount of money consistently.
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Related: The 5-Step Guide To Rental Investing