Your home will most likely be the most valuable asset that you own in your lifetime. There will be very few items that you will have that will cost you more to buy – unless you buy another property.
So it would make sense that you will want to make sure you get what you can from your most significant financial asset: if it can help you to earn money, then you should think about how this can be done and what could be the best option for you. If this sounds like a great idea, then you’ll be pleased to know there are many ways that your home can help you to raise cash – and here are just some of those suggestions.
Run a bed and breakfast
Turning your home into a B&B might be a great option if you have several available rooms, and you want to maximize rental income. If you can rent out several rooms in your home every night – or even every week – then this could be more profitable than monthly rentals.
Perhaps focusing on an LGBTQ+ only clientele would be a great idea, this would give the community a safe space while traveling somewhere that might be unfamiliar to them, and they can be reassured that they are safe and welcome to stay without anticipating homophobic judgment from other guests.
This will require more from you than renting out a room – such as providing breakfast, to start with. Make sure you research what you’ll need to do to operate a B&B before you begin.
Use equity release
This is a way to release cash from your home without having to move. There are two main types of equity release:
- Lifetime mortgage – this most common type means you borrow money secured against your home. The mortgage will be repaid when the home is sold, either when you move into residential care or pass away
- Home reversion – you sell all or part of your home to raise money. Again, you can continue to stay living in it until you pass away or move into residential care
There will be certain conditions you will need to meet before you can take out equity release, such as your age and condition/value of your property. Yet using equity release means you can get a tax-free lump sum or regular payments to supplement your income. You may still benefit from any property value increase, and you can always move home if you wish because equity release is transferable.
Before deciding to do this, get independent equity release advice so your personal circumstances can be reviewed. If this is the most viable option for you, then you’ll be given recommendations on what type will fit your requirements.
Rent out spare storage space
If you have an attic or any unused rooms in your property, then you could consider renting out this space. This could be done for 25% to 60% of commercial storage prices, for instance.
If you decide to do this, then charging $10 a week for 15 square feet of space means that you could make an extra $520 a year. You can list your space for free on websites for your local area.
However, you should check if your insurance includes damage to other people’s items – if it doesn’t, then you might end up paying for any incidents. Ask your insurer about this and, if they don’t extend your policy, you could think about having a separate business policy instead.
Let your home when you’re on holiday
Have a look at sites such as Airbnb to see how you could let out your home when you’re away. You will be able to earn a little bit of extra money when you’re not around, but your property won’t be left unoccupied during the holidays either.
You could even vacate your home during popular events in your area. If there’s a local festival going on, or a major sport event, you could rent out your property to people who will be in town for these occasions.
Rent out your parking spot
If you are not keen on leaving your property in the hands of other people during events, then you can still make the most out of your parking space with these occasions. You could also rent your space to commuters if you live near a station, for instance.
Have a home-based business
There are advantages to operating a home-based business: whether you want to work at home, or just use it as a place for your new small business. Running your brand from your property can help keep down overheads and have tax advantages, for instance. If you can work from home, then you can stay with your children there while still earning money.