As most homeowners can tell you, owning a home isn’t necessarily cheap. There are a lot of expenses that go into running and maintaining your dream home, not to mention your mortgage payments. This is why some people look for avenues to bring in extra money. For example, they may take on a part-time job to earn an extra income and help them pay some of the bills. However, it’s actually possible to use your home itself to raise some extra cash. Below, we’ll outline a few ways your home can help you generate some extra income and make affording the home a little easier.
Rent Out a Room
If you have a spare bedroom in your home, you can earn extra money by renting it out. This applies to not only spare bedrooms but finished basements or a guest house you may have. You can choose to rent out the space to long-term leasers or on a short-term basis to travelers. For example, you could list your spare space on a site like Airbnb and allow travelers to stay there for a few days or weeks at a time.
Renting out your spare space comes with some additional costs, so you’ll want to be aware of these before you rent it out. For example, having more people in your home may raise your monthly heat and electricity bill. If you’re going to have frequent renters, you might want a professional cleaning service to come in between so you don’t have to do it yourself. However, if you can keep the costs to a minimum, renting out your space is an excellent way to generate some profit from your home.
Get a Reverse Mortgage
Another option is to take out what’s called a reverse mortgage. According to All Reverse Mortgage ™, “A reverse mortgage is a loan secured by your home. It must be your primary residence (that means that you, as the borrower, must live in the home for as long as you have the loan). This type of loan allows borrowers to access a portion of their equity — tax-free — without having to make monthly mortgage payments.”
Essentially, you get to take out a loan using the value of your home. This is a good option for homeowners to consider if they need a large sum of money quickly. For example, if you want to pay off some credit card debts or pay for a wedding, a reverse mortgage may make sense. Make sure you learn all you can about them before you sign up, as you want to know what you’re getting yourself into. Reverse mortgages are very helpful in some situations but they are not right for everyone.
Host a Garage Sale
Do you have a lot of clutter around your home? A good way to do some cleaning while also making some money is through a garage sale. Take some time to go through all of your stuff and see if there is anything worth selling. Even if you only get a few dollars for something, it’s better than having it clog up your closet space. And, if you sell enough things, you can generate a nice income for the day. Of course, hosting a garage sale isn’t a long-term solution to money problems. But if you need a little bit of extra cash, why not make use of your outdoor space and extra junk by hosting a sale?
Start a Side Business
Lastly, if you’ve always wanted to start your own business, doing it from your home can help you save some money. For example, you could turn your spare bedroom into a home office and start your business there. Or if you’re into fixing things, you could turn your garage into a repair shop. Some of the most successful businesses today started at home or in a garage, and maybe yours could be the next. It may take some time to see profits but if you stick with it, having a home can be a significant advantage for your new business.
Make Use of What You Have
To generate extra income, you often must make the most of what you have. For you, this means your home. By finding creative ways to use your space, you may be able to bring in some extra cash and help you afford your bills. The above items are just some suggestions – take some time to think about all the different ways you could use your home, then look for a way to profit off of it.