3 Easy and Savvy Ways To Turn Your House Into An Income Property
It is amazing what it is right under our noses and we don’t even realize it. I’m talking about opportunities. We all have an opportunity to make a little extra money, right from home. If you’re hoping to invest in real estate but can’t buy a property, consider these unique, simple ways to turn your own home into an income property.
1. An Income Property Without Letting Anyone Inside: Parking
Let’s start with how you can make money in real estate without letting people inside your house. Parking can be a major issue in big, urban cities. Many people underestimate the challenges that come with having a car — finding a parking space and paying for the space is a pain in the neck. The reality is, there are not enough parking lots or spots to accommodate all the cars. So, why not offer your driveway or garage in exchange for money?
If you only have one vehicle, you might have space for additional cars. Or maybe you keep your car in your garage and offer an empty driveway. Perhaps you can charge even more if you let a space in your garage or the entire garage. There are many different ways to use this strategy, just get creative.
There are already websites and apps that have tried to simplify parking, some of them using the sharing-economy to do so. Rover is a Canadian-based platform that allows people to list and rent empty driveways or parking spaces.
Although not part of the sharing economy, Luxe is an app that allows drivers in six different cities to drop off their car anywhere and a valet will park it for them, saving them them time and hassle. (Maybe not relevant, but this app is too cool, it deserves an honorable mention.)
Let’s take a small example of when using someone else’s parking space is super helpful. I have personally seen the amount of traffic that gets built up on a Sabbath day in a neighborhood that has a place of worship. People drive around looking for a parking space because there may not be enough parking. When neighbors offered their driveways, it was truly a blessing.
What are the most important things to figure out? A payment method and a way to reassure cars do not stay parked for longer than the agreed time.
**Bonus: Another way to have an income property without letting people inside the house? A garden! Attract those looking for an outdoor setting for their photography. Rent space to someone who needs land to grow their vegetables or plants.
2. An Income Property Without The Tenants: Storage Space
Another much needed, overpriced service: storage. How many times have you logged on Facebook and someone is looking for a place to store their stuff (or car)? This is probably the most passive way to make income on this list. This is an income property strategy that allows you to make money without having to accommodate people, but just their stuff.
The cheapest storage unit is around $40 per month, and that’s for a space around 5×5 feet. You can offer a lot more space for a cheaper price, while still making it a lucrative business. Your expenses are minimal, allowing you to cash-flow even if your prices are significantly less than a storage unit’s. The storage unit you provide can vary from a single closet to an entire basement.
One benefit of renting storage space as a way to make money in real estate is the laws for storage rentals differ a great deal from laws that apply to landlords and tenants. If someone uses your storage space and does not pay, you have the ability to sell their possessions and get your money.
What are the most important things to figure out? Payment method and preventing leaks.
3. Renting To Tenants Who Don’t Sleep Over: Work Space
Okay, I saved the best for last. Why is it the best? Because the possibilities are endless and the returns are higher.
I initially started to write this section first. I listed all of these professionals that could rent your property, then I realized I had a theme going on: rent your property to professionals.
The sharing economy is not limited to short-term lodging. Make no mistake, there’s almost a sharing economy platform for everything now. Imagine renting out your home as an office space, only during the day. Unlike platforms such as Airbnb or other vacation rental websites, the space accommodates guests only during the day.
Spacehop is UK-based startup which allows anyone rent out extra space to businesses during the day. If you have a large living room, for example, you can rent out that space to a business looking for a cheaper or temporary workplace. The workplace listings are categorized as “startup, cowork, or work solo,” on Spacehop.
This concept is not just used by homeowners to make extra money but also by companies themselves. For example, ShareDesk is an online platform that allows offices to rent out extra office space. If a company has an unused office or conference room, they can list it on ShareDesk.
For a list of related companies, click here.
What are the advantages of renting out your home to a freelancer, startup, or traveling business team? It requires a lot less resources from your end, making it a great way to make a passive income every time you leave the house. When you come home at the end of the day, they’re gone.
Don’t stop there! Here are some more ideas.
Lots of daycares start out in a basement or home. However, not everyone who wants to open a daycare has the space or money to rent a commercial property. Get your basement/property daycare-friendly and approved and start marketing.
Kitchen For Bakers/Caterers
If your state permits it, a home kitchen can be used for a home bakery or for producing commercial food. Check out how what laws you’ll need to inquire about to get your kitchen certified for a bakery or catering business.
Professionals looking for extra space are everywhere — whether it’s a therapist, masseuse, photographer, or an entire company.
What are the most important things to figure out? Getting your property certified for any kind of business.
Now, remember, no matter which idea you go with, you have to claim your income. 🙂
What do these 3 ideas have in common?
These three strategies (parking, storage, and working space) can be used very differently, but here’s what they all have in common:
- The income property offers a space that is more convenient and cheaper for the customer
- The income property has extra space that is not being used, how can someone else use it?
- The income property has a space in which people are always looking for
- The income property should host these spaces at a much lower cost and in need of few resources
It’s funny, right? People spend tons of money and time searching for these kinds of spaces or services, when really, if they just knew someone, there would be no search and no ridiculous payments. Ready to be that someone?
Check out Mashvisor for the best places to invest in real estate and have an income property!
Originally published at www.mashvisor.com on January 28, 2017.