Make Money With Renting Your Rooms
Do you know you can earn money from your house while it is still your living place? If no, it is time to learn how to make your house work for you.
Nowadays, as families become less populated, traditional American houses become unnecessarily huge for them. The people with entrepreneurial spirit find ways to turn it to money. The idea has become so popular that people start to invest in large houses keeping in mind these investment opportunities.
How Can I Earn Money From My House?
There are different ways you can make your house source of income. Other than traditional renting house procedures, you can rent part of your houses for specific purposes to earn money. If you want to know how to make money with your house, keep reading.
First of all, you should think about who may need short or medium term free spaces and willing to pay for it. In the following cases, people may need hosting:
- Secondment: someone may come to your city for a specific period. It can be Erasmus programs for students.
- Short- term travels: daily or even hourly renting may be needed in some cases.
- Events, parties, organizations: people who don’t have free spaces may prefer to rent available houses for an organization.
- Films, video clips etc.: filmmakers need houses for their films, sitcoms, video clips etc.
- Storage: You may also host office equipment or furniture, for instance in case someone moved from the city for some time.
- Office: You can rent a part of your house as an office.
What Should Rental Agreement Include
You should be aware that, oral agreements are easy to manipulate. In case of any inconsistency, what you will use in court for instance? For this reason, create a written lease which makes everything clear for both you and your tenant. The lease should include at least:
- How much the rent will be?
- When tenant should pay the rent? What is the deposit?
- What are the opportunities in the house?
- Other concerns about cleaning, parking, quiet time, pets etc.
- Any other service subject to payment
- What will you do in case of inconsistency
First Thing First: Legal Requirements For Renting Your House
There are both national and federal laws concerning how to make money with an empty house or a part of your house. Each state has different rules and applications. Based on this, the first thing you should do is checking the legal requirements. For instance, tenants should have access to operational plumbing and clean water. You should make sure about gas safety. Some state requires large windows that can be used in case of fire. The room rented to others may require an outdoor access.
Avoid any legal punishment and safety, find legal information including the procedure in renting a room. If you cannot find on the web, you should call the legal entity to make sure you meet all the requirements.
If you are a member of an association like the homeowners association, check whether rentals are allowed. Many of these establishments are not allow renting agreements.
Contact also with your insurance company and learn whether your insurance sufficient for the service.
Once you are sure you meet the requirements, decide how you use free spaces in return of money.
Different Ways For Renting Your House
Add A Rental Suite:
If there is no legal obstacle, you can invest in your garage or can build a separate free-standing structure for your tenants. It has higher initial costs since, in most of the states, rental suites require separate entrance, kitchen, and bathrooms. However, the return will be higher too.
Rent You Spare Rooms for Short –Term Visits
If it is legally impossible or you don’t have such a budget, you have another good option. You can rent the spare rooms you have. As mentioned above, today many people decide with taking this opportunity into account. If your house has a desirable property, there will be demand for hosting. For some people, desirability means closeness to the center, a university, a hospital etc. For some others, it may be silence, comfort etc.
Below, you can find significant tips to make money from your spare room:
- Rooms with their own bathrooms rent for more than one with shared facilities.
- Rooms have independent entrance rent for more than otherwise.
- Using online platforms for ads is essential. Airbnb is one of the most known platforms. You can also put your ads to craigslist.
- Search for the right price. Compare the prices of rooms with similar facilities. Rentometer can help you in comparison.
- Don’t forget, customer satisfaction is your true capital. Make sure that you are clear on the facilities, dos, and donts. So that your customers will not be disappointed.
Run a B&B
If you have more than one spare rooms, it may more profitable to choose B&B service. Other than the requirements mentioned above, you may need additional things to do. For instance, to serve alcohol in your place, probably you should get a license. Since you will serve breakfast, you should meet the requirements of food safety. You need to call for regular food and kitchen controls made by experts. Some states also require a license for serving food. If you are serving your homemade foods, you should also check cottage food laws.
Rent For Events
Although, people are looking for rental places more frequently for outdoor events; you can also promote your spare rooms for indoor activities. For instance, rent your room as a film café may be a good idea depending on your neighborhood. If you have enough space, you can also rent some part of your house as a sports hall for people who organize special classes. Sometimes, tutors also need rooms for rent.
Rent Out Storage Space
You may have an empty room and want to turn it into cash. Storing for others is an alternative idea showing you how to make money with an empty room. To start a storing business, your rooms should be suitable in size to store at least furniture. You can also use your garage as a storage space which is frequently searched for in winters.
How Much Can I Earn?
The amount of money you can earn depends on the location, the facilities, the purpose and the season you rent your house. On average, one room may pay you from $400 with using as a storage to $1.200 with B&B in a month.