Most people who have extra room in their homes leave it that way. Only a few people even consider using it to make some extra cash. Usually, these spaces are used as a storeroom for all unused items.
It makes perfect sense to use the extra room to your advantage by renting it out to someone or using it to start your own business, given that you have a mortgage that must be paid monthly. You’ll always have people looking to rent spaces for living and other needs. Here are some ways to earn some money in your spare room.
Rent Out Your Room Using Airbnb
One of the best options to make money with a spare room is to rent it to other people.
Airbnb is an online lodging marketplace where you offer your room to travelers looking for a place to stay. It is easy to get started and requires little to no capital.
When renting your room on Airbnb, expect to pay a small service fee, but that’s your only expense on this platform. When your calendar is filled with bookings, that’s easily a few extra hundred dollars of income without you needing to do most of the work.
Hosting your room on Airbnb earns you $500 to $1500 per month.
Rent to Foreign Exchange Students
Like Airbnb, another way to earn money from your extra room is to rent them to foreign exchange students. Hosting a foreign exchange student can make anywhere from $30 per day to $1,500 per month. Moreover, if you can land a paid arrangement, you’ll have recurring income for a year or more.
Most foreign exchange student placement firms pay people to host such students in their homes. Remember that while the position provides a specific income, it also has the additional duty of caring for teenagers and serving as their guardians for a period of time, which is especially challenging for a first-time landlord. If you believe the financial investment is worth the effort, go for it.
One advantage of having an international student is that you will learn so much about the people and culture of another place, not to mention that you will be able to pick up a new language for free! Additionally, you can impart your English-speaking expertise to them and aid in their improvement. They can walk about, interact with people, and live independently in a foreign environment without encountering language obstacles.
Get a Roommate
The idea is to bring on roommates to help earn some cash and cover some or all of your mortgage.
This method of making money from a spare room has advantages; once you find a tenant, you should have at least a year’s worth of consistent rental revenue, barring any unforeseen circumstances that would cause the tenant to vacate.
The drawback to this is that you now have roommates, which may cause issues if you have different schedules or expectations for how clean a kitchen sink should be.
Rent it Out As a Storage Unit
Renting a storage unit might be expensive. You can take advantage of this by renting your spare room as an affordable storage unit.
A spare bedroom can make a respectable storage unit, though it’s best for storage facilities to have a distinct entry point, and spaces like basements and garages work well here.
Since it’s doubtful that the owners will return before the storage term is out, you’ll benefit from having complete privacy in your own house. Renters should be thoroughly vetted before signing a lease, and everything should be documented appropriately to prevent any legal or other problems.
Start a Business
Staring out a business and making your spare room an office space is a great way to earn money, especially if you are uncomfortable with having strangers in your house.
You don’t necessarily need a separate room to start a business, but when you have one, use it. Moreover, you’ll get to focus on your business and eliminate any distractions when you have a separate office space.
Rent Out Your Space for Events
One way to earn money from your spare room is to rent it out for events. There has never been a better moment to rent out your home for events if you have a home that is spacious enough for events.
Sites like Peerspace and Storefront can let you rent out your room for:
- Art Shows
- Coworking Spaces
However, you must redesign your room to make it unique and interesting.
You can rent your home for gatherings at costs ranging from $50 to $500 per hour, depending on the space and the location. In other words, you might receive between $200 and $2,000 for opening your home to a four-hour bridal shower.
Things to Consider Before You Start Earning Money From Your Spare Room
Ready to get started earning money from your spare room? It would be best to consider some things before making offers or cleaning out the junk from your extra space.
Invest In An Attorney
To ensure you and your renter can agree, consult a real estate professional to assist you in drafting a contractual agreement form to use with tenants (even temporary ones).
Knowing the details of your agreements beforehand will help you avoid sticky situations later.
Who Will Rent Your Room?
You might find it difficult to picture yourself letting a stranger live in one of your bedrooms. Still, you could find a dependable college student or newly employed young professional.
Before you take somebody in, you should request references and background checks if you have kids at home. Make sure your family is secure before opening up your home.
If you rent a room, you might be pleasantly pleased to learn how easy it is to become used to sharing your house with someone else.
Check Your Local Laws
Is it legal in your city to rent out individual rooms or even your entire house?
This is especially crucial if you have significant changes planned, like building a new entrance for your home.
Contact Your Insurance Company
If you implement some of these suggestions, it is crucial to have the required liability insurance and to report the additional revenue on your taxes.
Also, check with your city’s coding and zoning officials or an attorney for any answers your insurance company might have about renting your space.