Do you own your home? If so, you need to know how to make money with your house. There are so many ways to use the space you already have to earn a decent side hustle income. If you’re comfortable with being a host or having other people around (or perhaps IN) your residence, here’s how to make extra cash!
Related: How to Pay Off Your Mortgage in 5 Years (Robust Calculator Offer!!)
Can you make money renting your house?
Yes! Whether your home is your primary residence or you buy a home to be a secondary home, you can make money renting out your house for both active and passive income.
Remember that renting out your home may come with other laws and rules based on where you live. Be sure to talk with your local city ordinance and understand your state’s laws on taxes, renting out your home, and landlord laws if needed.
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Can I rent out my house without telling my mortgage lender?
I wouldn’t suggest that. Yes, you can rent out your home (usually). But you’ll need to notify your lender.
If you rent out your home and don’t let them know, there may be consequences. They may require additional insurance coverage, or there may be stipulations where you have to live in the residence for a certain amount of time before renting it out.
Related: How We Got to Financial Independence Through Real Estate
Can I rent out a house I just bought?
That depends on your mortgage paperwork. I suggest contacting your lender and seeing if that’s possible for you.
How long can you leave a house empty?
Under many different homeowners’ insurance policies, certain issues aren’t covered if your home is vacant for more than 30-60 days. This includes theft and damage.
Be sure to check in with your homeowner’s insurance and your city.
Related: Making Money With Vacation House Rentals
How do I turn my house into an investment property?
Looking to make money with your property?
You need to do a few things before turning your house into an investment property. Besides talking to your lender to confirm that you can and talking to the insurance company about coverage, there are a few people to contact.
First, if you have a homeowners association, you’ll need to double-check that you can rent out your home and how.
Do they allow short or long-term rentals (or both)? Do you need to fill out any additional information? Or, do you need certain paperwork? While some HOAs allow rental properties, some don’t.
Next up, be sure to talk to an accountant about any potential tax changes that could affect you. And talk to your local municipality if you have a homestead exemption.
Last but not least, you may need a permit for your residential property to operate as a rental. These types of permits aren’t usually expensive, but they could protect you if something happens. This also requires an inspection for certain areas, checking your heating and cooling, exits, electrical, and plumbing. Otherwise, it shouldn’t take long to get a permit if required.
Related: Which Makes More Sense – Landlord’s Insurance or Homeowner’s Insurance?
Can you rent your primary residence?
This mostly depends on your mortgage lender and if they allow it. But usually, you can rent out parts of your primary residence and in some cases, the whole home.
Do I pay tax if I rent out my only home?
In most cases, you’ll need to report all rental income on your tax return. But, you may also qualify for tax benefits. Be sure to talk to an accountant about how to save money on taxes.
Can I Airbnb my house if I have a mortgage?
Sometimes! As usual, it will depend on your mortgage lender and your city/state (some don’t allow short-term rentals or have cut-off times). If you can’t have a short-term rental or Airbnb, there may be other ways to make money with your home. Just keep reading!
Related: How to Buy Your First Rental Property (And Start Your Future Empire!!)
How can I make money with an empty house?
As you can see, there are a few steps that you need to take before you can start making money with your home.
But here’s how to make money with an empty house and ways to make money with empty spaces!
Related: When Am I Financially Ready to Buy a House??
Have A Roommate
First things first, the easiest way to make money is to have a roommate or multiple roommates! You can do this if you HAVE to live in your primary residence but still need to make extra money or house hack. If you have enough rooms, rent them out and make a few extra hundred (or thousands) each month.
Of course, you’d still technically be a landlord in this type of situation. So you’ll want to check with an accountant, have a rental agreement, and decide if you want your roommates talking to you, or going through a property management company, about any issues.
Related: First-Time Landlording – My First Two Weeks
Rent Out The Home To College Kids
Another option is renting your home to college kids, especially if the home is empty and near a college. You can rent out each room and essentially make more money per month than renting out the home as a single-family unit.
There may be rules and laws for renting out to college kids (and some cities may have rental caps), but it’s a great way to fill up the rooms and make extra money each month. Like a roommate, you will be a landlord with this option. So understand the laws and how to make the lives of your renters easy. If you take care of them, they will take care of your home!
Rent On Airbnb
Not ready for long-term renting? That’s okay!
If you want to make money off your house, you can try putting it on Airbnb. This allows you to offer it as a short-term rental, and you can rent it out whenever you want.
For example, some Airbnb hosts rent out their homes or rooms in their homes when they’re on vacation, traveling for work, or just need some extra cash. You don’t have to have your home available all year round, but the more times you can book, the more money you can make.
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Create An ADU
If you want to make money with your property but are using your home as your primary residence, you may be able to have an ADU (also known as an Accessory Dwelling Unit).
ADUs can be anything from a basement or garage apartment to a shed you’ve decked out in the back. As long as it has electricity, running water, and is self-contained, you can rent it out for extra income. And bonus points; you can give it its own entrance/exit and keep your home off-limits while still renting out a space!
Of course, be sure to check with your city, county, and state to see if you can add an ADU to your property and what it all requires. This can be an expensive venture, so make sure it’s legal before diving in!
Related: Passive Residual Income – What It Is And How You Can Earn It!!
Rent Out A Storage Space/Garage
Another option to make money with your house is to rent out some storage space or your garage if you aren’t using it. We all know self-storage units add up over time and can be costly!
If you have a garage, shed, outbuilding, or even basement with its own entrance, you can rent out the raw space to people as storage space. Unlike an ADU, these areas don’t have to be self-contained since people won’t (or shouldn’t) live in them.
Looking for some websites to advertise your space? Try websites like Neighbor.com and SpareFoot.
Related: What To Do With Your Money in a Recession (The 2022 Recession Is On!!)
Rent Out Your Driveway
Yes, you can even make money on your home without renting out an enclosed space. If you have a driveway or even a carport, you can rent it out.
Basically, for people who need parking spaces or who have boats, RVs, or extra vehicles, they need storage space. And if you have a piece of the driveway that works for their needs, they’ll pay you to rent it out monthly.
You can use websites like Neighbor.com again (and even rent out your driveway and storage space!) or a website like Spacer.
Related: How to Invest in Real Estate Without Becoming a Landlord
Rent Out Artistic Space
If you don’t want to rent out your space to tenants, you can try a short-term solution and rent it out to artists. Many artists and designers need studio spaces to work and host clients during the day.
While they won’t live in the studio, they may need amenities like Wi-Fi, a dark room, or many windows. If you can meet those needs, you can rent out the space as their main work area (kind of like a co-working space!)
You can use websites like Peerspace to rent your studio space options.
Rent Out Your Home For Events
Another great short-term rental solution is renting out your home, backyard, or other space as an option for events. For example, barn weddings are popular in more rural areas, so renting out your barn in the back can be lucrative!
Other amenities that guests love include…
- ponds,
- extra rooms,
- gazebos,
- and lots of backyard spaces.
While you can rent out the space for events, you can also make even more money if you can rent out other items. This includes decor (like lights, tables, chairs, and a wedding arch) and charging for catering, alcohol, etc (if you offer services or want to charge a small fee for them to bring in outside help).
Websites like Peerspace and Splacer are great sites to list your event space.
Related: Owning a Vacation Rental: Are You Ready to Purchase a Vacation Home?
How To Make Money With Your House: Bottom Line
As you can see, there are many ways to make money with your house, including both short-term and long-term options! And many of these don’t require you to leave your home either, as long as you’re comfortable being around other people!
Are you ready to make money with your house? What will you try? Tell us in the comments below!
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AUTHOR Kimberly Studdard
Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn’t spending time with her daughter and husband, or reading her growing pile of horror books, you’ll find her working on her HR degree and working towards FIRE.
