The majority of people who have spare rooms in their homes leave it as it is. In fact, the thought of using it to earn some extra money doesn’t occur to many. So, what happens to the room? It usually ends up being used as a storeroom, where all the unused items turn up.
Now, considering you have a mortgage that needs to be paid like clockwork (monthly), it makes complete sense to use the spare room to your advantage by renting it out to someone or even using it to set up your own business. Believe us when we say that you’ll never run short of people looking to rent spaces for living and other requirements. Therefore, without further ado,
Let's look at 11 excellent ways on how to earn passive income with your spare room:
1. Get a roommate
Since a significant chunk of people lives in rented spaces, you won’t have to make an effort to search for potential tenants looking for a place to live in. You’ll end up earning a substantial amount of money when you find the perfect tenant for your property.
While many folks might resist living with someone, it’s a fantastic idea if it helps cover your recurring expenses. Sharing a roof helps one learn how to be more accommodating, helpful, and compassionate. You become a more evolved individual and bond with people from different backgrounds and lifestyles. The experience makes you a better bargainer and helps you become more affable.
Unless you have restrictions or preferences, anyone can be a roommate. Since this is your home, you get to be two things at once: a landlord and also to live with a roommate.
As a successful landlord, be thorough in your tenant screening process and conduct the entire gamut of checks required - credit, income, employment, and rental history to determine your potential tenant/roommate’s financial and personal worthiness. To figure out whether you can live in peace with whoever you’ve shortlisted, ask them many questions related to their job, leisure activities, and preferences, among other things.
In the end, to find a perfect roommate/tenant, be sure to explore Cirtru, the most trusted and dependable roommate finder in the country! In just three simple steps, you’ll be well on your way towards finding a person you’ll be sharing a roof with!
2. Look for a lodger
You could also consider searching for lodgers looking to rent part-time or for a specific period. Interestingly, you have weekly lodgers too who prefer to have a rental space only for the weekdays. They reserve the weekend to travel to their families and spend time with them. You always have people looking for lodging facilities, so don’t worry about finding one for your home.
Several spare room lodging portals exist and can be used to find lodgers. All you need to do is find a secure one and sign an agreement with one of them after sharing your needs. Share detailed information on things like the number of people you can accommodate, the price you’re charging, and the length of stay. Finally, once the deal is sealed, you’ll have interested folks reaching out to you for further discussions.
3. Use it to start a business
Having your own house gives you a lot of flexibility to do other things that have nothing to do with renting, such as starting a business. Starting a business from home doesn’t necessarily require a separate room, but when you have one, why not make use of it? At the same time, a designated room is a must if the business revolves around alternative therapies or even a daycare center.
If you’re interested, you could use it as an office for a real estate business as long as you ensure you have the necessary permits to start one. An exciting alternative could be beauty products or a fashionable and contemporary clothing business for the younger crowd. Last but not least, if your language skills are impeccable, you could also become a proofreader. After all, there’s nothing like earning money from the comfort of your own home, isn’t it?
4. Rent out your room to a foreign exchange student
Foreign exchange student placement services, for the most part, offer remuneration to people who host such students in their homes. Remember, while there’s a specific income from the job, it comes with the added responsibility of taking care of youngsters especially for a first-time landlord and being their guardian for several months. So, if you think the money’s worth the time and effort, go for it.
While looking after a bunch of teenagers might be overwhelming, it might work in your favor as you’ll have company and people to talk to whenever they’re home. Since you’ll have outsiders living in your home, it’s a given that you need to be assertive and share guidelines on how to keep things clean and care for them as if they were their own. Also, let them know that they need to maintain a certain code of conduct while they’re living in your home.
Another benefit of having an international student is that you get to know so much about another country and culture, not to mention get free tutoring classes for a new language! Moreover, you get the opportunity to share your English speaking skills with them and help them become better speakers. That way, they get to move around, mingle with people, and manage independently in a new place without any language barriers.
In a word, ensure you have their backgrounds and references checked out to know you’re living with people who’ll not give you sleepless nights in the future.
5. Rent it out to tourists
Renting out your house to tourists by becoming an Airbnb host is another exciting way to earn some extra cash without having to buy or own a separate vacation rental property! It’s perfect for those who don’t wish to rent it out for long periods and are fortunate enough to live in a tourist location and big cities like NYC, San Francisco and Los Angeles.
You get to earn money without doing anything because once your guests have the space, they’re on their own. Without having to bother about them and with plenty of time on hand, you get to live your life hassle-free.
The best part about being an Airbnb host is your home is available only when you want it to be. Use the calendar to strike out the days you can’t entertain visitors. Let’s say you have family members coming over, or you want to spend some time by yourself, make sure your property’s unavailable for that length of time.
Rest assured that since tourists are temporary and don’t want to get into any trouble or on the wrong side of the law, they’ll look after your property well. In summary, be sure to screen tourists and permit the ones you’re comfortable with. If their profiles appear inauthentic, drop them. Since it���s your home, you get to decide who’s fit to live in it.
6. Rent out the entire house when you’re not around
If you decide to go on vacation, why not have someone live in your home for a little while instead of leaving it vacant? Also, vacation aside, if you don’t want to live here for some time, have somebody else use the space and make money in the process.
G. Brain Davis, a real estate investor and personal finance writer, shares a story where his friend would rent out his house whenever he was traveling, which was pretty frequent. The income he earned from this venture covered more than his travel costs, and he ended up traveling even more!
7. Rent it out as a storage space
People who need to store their belongings can keep them in self-storage units but might find that they’re pricey. Besides people who want to store their personal stuff, you might also have business owners wishing to store their merchandise somewhere. So, in all probability, they’ll be searching for cheaper places to store their personal items. That’s where you come in!
Although it’s ideal for storage facilities to have a separate entry point and places like basements and garages work well here, a spare bedroom can also serve as a decent storage unit. If you’re lucky enough to have room to accommodate an RV or even a boat, people will flock to you, and you can ask for a higher price that most people won’t refuse.
You’ll have the benefit of absolute privacy in your own home since it’s unlikely that the owners will come back before the end of the storage period. Screen prospective renters well and ensure everything is documented to leave no room for issues, legal or otherwise.
8. Rent out your room to photographers
Photographers need stunning backdrops or studio apartments for their photoshoots. If they had to search for such places in commercial areas, they might not be able to afford the rent. In such a situation, your home might just be the place they’re looking for.
Portals such as Storefront and Peerspace have brought together people in need of such spaces with those who own them. So, should you wish to, you can use their services to find someone with artistic sensibilities who makes good use of your room while maintaining it well. Rent it out to them at a reasonable price and it’s a win-win!
9. Set up an ADU (Accessory Dwelling Unit)
Wondering what an ADU is? An ADU (Accessory Dwelling Unit) is a self-supporting residential space situated on the same lot as an individual single-family home but smaller. ADUs also have other eye-catching names such as in-law suites, income suites, granny flats, and basement or garage apartments.
Renting out such a structure is lucrative, to say the least, and may even help you cover your entire mortgage and live in your home mortgage-free! So, what next? Inspect your property thoroughly to see if you can set up a self-sustaining living space by constructing a bathroom and a kitchen, maybe something tinier, like a kitchenette. You could use the garage or the basement or split a particular section of the house to form your new unit. If this isn’t feasible, put up a new structure. By this way you can also increase the value of your rental property and charge a higher rent.
To sum up, once the construction work’s done, list your rental property for a reasonable price, and you’re good to go!
10. Make it a home for a child
Providing shelter to a child in need is a noble gesture, so do your bit to give back to society what you’ve been privileged to receive. Of course, having a child at home is a Herculean task, and you need to ensure you play your part as a responsible parent and look after all the child’s needs. There’s an allowance involved, but do it only if you’re prepared and keen to take up the task, not because of the money. You may need the money but put your heart and soul into the exercise.
The duration of a child’s stay varies from one foster agreement to another. Therefore, whatever you do, make sure you view the situation objectively before deciding what to do.
To conclude, if you have parental instincts, this may be an ideal opportunity for you to bond with a child and give them the love and support they’ve never received.
11. Use your room as a pet boarding facility
Having a child in your home for an extended period might seem overwhelming, but that doesn’t mean you can’t look after pets, especially if you’re an animal lover. Set up a pet boarding facility in your spare room and babysit people’s furry friends when they’re at work, out of town, or on vacation.
You can sign up as a boarder through rover.com and use all the space you have in your room to accommodate some cats and dogs. While you do need to tend to their needs, they don’t require as much time and care as children.
Finally, while this might not be a passive income source, it’s enjoyable and rewarding in its own way!
Conclusion
So, are you eager and ready to open up your spare room for business? We sure hope so! The best part about these activities is that you don’t need any specific skill set to perform them. You just need to use your common sense, intelligence, and gut to make the right choices. In addition, these money-making schemes include varied options, other than just renting out a room to someone. So if you’re not comfortable with the renting business, you can always find another way to earn some extra cash!
