Now that you own property, and you’ve spent a great deal on your down payment, plus taken on mortgage payments, you might be feeling the budget crunch. How can you make more money? Well, there are a few ways to use our new property to add a stream of passive income. Or, at least, relatively close to passive. Here are some ideas new homeowners should explore.
1. Renting a Room
The most obvious way to add a passive income stream is to rent a room in your new home or rent a portion of your home. If you have a basement, you may be able to turn the space into a basement apartment relatively easily. Even if not, having that separate space for the bedroom may help give you renter their own sense of space, although you have to share the kitchen and bathroom.
If you don’t want to share your home with a renter, another great option is to build and rent and accessory dwelling unit. Giving your renter a physically separate space, along with their own kitchen and entryway, means you and your renter will both have privacy, but you’ll still get that income. It’s a great way to make money with your home without having to compromise your lifestyle.
2. Renting Your Yard
Not interested in having someone in your home all the time? Renting your yard is even less work and maintains your privacy considerably better. There are a few things you can consider renting out:
- Storage: If you’re not using your garage or not all of it, you can rent it out and allow someone to store their excess items.
- Garden: There is demand for community gardens in some areas, especially if you’re in an urban area or you’re close to apartment buildings, as people in these areas won’t have their own garden space.
- Pool: Some people prefer a more private pool to local public options. You can rent out pools to swimmers or you could rent it out to someone who wants to hold their own private lessons as a swimming coach.
- Space for Events: If your new home has a great deal of outdoor space, you may be able to rent it out for events. This isn’t exactly passive income, you will likely need to do some organizing work, but it can be lucrative.
3. Gardening and Growing
It’s not passive income, but now that you have your own green space, you could consider growing or gardening for extra income. Options include:
- Fruits: A small orchard can be low maintenance and bring in enough fruits to sell.
- Vegetables: You can grow for yourself or for sale or trade with neighbors.
- Microgreens: They take up minimal space and are ideal to sell to chefs.
- Cut flowers: It doesn’t have to be edible to be in demand.
- Animals: Small animals such as quail are best.
4. Garage Businesses
Homeowners who have the luxury of a large garage have a number of home business options. They are usually not passive income, but they can still help:
- Home studios (video, audio, or photography)
- Auto repairs
5. Kitchen Businesses
Unlike a renter, you likely have more space in your new kitchen and also have complete control of what appliances you install in there. A larger oven, unique kitchen appliances and tools, may allow you to run a small business out of your kitchen. Options include:
- Baked goods
- Meal prepping
- Meal delivery
Need to make some renovations to accommodate your new income stream in your home? Get professional help to keep it profitable.