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How to Generate Additional Income from Your Primary Residence

Moneymagpie Team 9th Nov 2023 No Comments

Reading Time: 5 minutes

Are you looking for ways to make more money from your home? You’re not alone: the vast majority of homeowners (and renters, too!) want to take advantage of their property and generate additional income. Fortunately, there are creative ways to make money from every room in your house. Homeowners can use this complete guide to learn how to make the most of their primary residence and generate a steady income stream.

Rent Out Interior Space

Renting out interior space can be a great way to generate additional income from your primary residence. Whether it’s renting out a room or basement to a roommate or Airbnb-ing your home when you’re out of town, there are plenty of ways to make your home start working for you.

Rent a Room or Basement

You can quickly generate extra income by renting out a room or basement. It’s a great way to use extra space in your home and make a little extra money simultaneously. As a landlord, you’ll need to make sure to screen potential tenants carefully and draw up a legal agreement. You’ll also need to set a reasonable rental rate that’s competitive in your area. Be sure to include all of the amenities for tenants, such as Wi-Fi, furniture, and appliances. You’ll need to ensure the safety and security of your tenant, as well as the cleanliness of the space.

Lastly, make sure to be clear about the rules and expectations that you have for your tenant. If you’re an early-to-bed, early-riser type and you don’t dictate quiet hours and roommate etiquette expectations, you may wind up wanting to pay your renter to leave!

Airbnb Home When You’re Out of Town

When you’re out of town, list your home on Airbnb or a similar platform to make extra money. Depending on where you live, you could make a tidy sum just by renting out your home to tourists or visitors while you’re away. Plus, if you’re living in a popular area, you can plan a camping trip or weekend away at a time when hotels and rentals are in high demand. This way, you can maximize the money you make from your listing.

Before listing your home, however, make sure to do your research. Read reviews, talk to other Airbnb hosts, and consider the costs of additional services such as cleaning. Don’t forget to create a detailed and accurate description of your home and its amenities. With the right preparation, you can generate significant income from your home when you’re out of town.

Add an Accessory Dwelling Unit (ADU)

After saving for a downpayment, many homeowners must choose between a house, condo, or townhome. One of the biggest advantages of buying a house is the ownership of the land it’s on—and the freedom to do with it what you choose (within the bounds of the law, of course!). A growing trend for owners of detached homes is adding an Accessory Dwelling Unit (ADU). An ADU is a separate, self-contained living space that can be constructed on the same lot as your primary residence. Depending on your location, you can make a lot of money by renting out an ADU. ADUs are typically used for short-term rentals, but they can also be rented out long-term.

Since an ADU is entirely separate from your primary residence, you can rent it out without having to worry about the guests using or sleeping in your home. It also provides you with the added benefit of privacy and security, as the guests have their own space.

To get started, you’ll need to obtain the necessary permits and confirm that your insurance covers the rental of the ADU; it’s vital to ensure that you are protected from any potential liabilities. Once you have all the necessary paperwork and permits, you can rent your ADU. Depending on your location, you may be able to find a tenant quickly, or you may need to be creative in your marketing efforts. You can list your ADU on popular rental sites, advertise on social media, or even reach out to your network.

Rent Your Driveway, Yard, or Pool

Renting out your driveway, yard, or pool can be a great way to make extra money without sacrificing much privacy. It’s a great option if you don’t want people coming in and out of your home, as they can use the outdoor space instead. You can rent your space for parties and events, regular recreational activities, or parking. If you have a pool at your home, renting it out on warm, sunny days can be very lucrative.

When renting out your yard, pool, or driveway, get the appropriate insurance and permits. You’ll also want to confirm that you have the right to rent out your space, as well as the right to evict any renters if they don’t follow the rules. It’s important to set up a contract with your tenants and be clear about what is expected of them. Lastly, make sure you don’t over-rent your spaces; it may seem counterintuitive to your efforts towards making money from your home, but ensuring that you and your household can enjoy your home remains vital.

Rent Storage Space

Do you have extra space in your house or garage that you don’t need? Why not rent it out as storage space? You could be the perfect storage solution for someone who needs a place to keep their belongings. Renting out storage space is a great way to generate additional income from your primary residence. You’ll need to establish rules and regulations for people to access their stored items and make sure you have a written contract or agreement that waives your liability for damages.

Take a look at the prices charged by storage facilities near you. In most cases, the rentability of your storage space will be dictated by your ability to slightly undercut proper storage facilities. It’s a good idea to secure and monitor the area being rented out; you should also make sure that the items are insured while they are in your possession.

Do More of What You Love

Make the most of what you love to do by charging for at-home services. If you’re an animal lover, consider becoming a pet sitter. If you have a green thumb, you can start a market garden and sell your produce. If you love to teach, you can offer tutoring services from home. Are you an artist? Do your part by renting your home as a set for filming or photoshoots. And if you love hosting events, you can open your yard for private parties or workshops. All these options are great ways to make some extra money while doing something you enjoy.

Make Your Home Work for You

With the right approach, you can make money from your primary residence and enjoy the rewards. Rent out interior space, add an ADU, and do more of what you love—there are many ways to generate additional income from your primary residence. Current homeowners are finding themselves with more and more leverage thanks to the housing shortage and high interest rates, so why not take advantage of that leverage and turn it into some home-grown mortgage assistance?

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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