How To Use Your Home To Earn Extra Money
Not everyone dreams of being a homeowner, and that’s okay! But for those who do, they feel a great sense of accomplishment when their first offer is accepted and they put that hard-earned down payment down on their new home. It may not be the home they own for the rest of their lives, but for the time being, it’s still their home.
Alas, with the upside of owning a home comes a downside – it’s expensive. You’re left paying a mortgage, the utility bill, property taxes, renovations (if applicable), furniture, and possibly even a parking permit if you don’t have a driveway or the driveway that isn’t big enough. Now what? You work full-time but still want to earn extra cash on the side in order to help pay for everything, only, how?
It’s 2020 and there are plenty of ways to make money on the side, including with your home you just purchased! Yes, you read that right. The home that’s making you spend money can also help you earn money, and here are eight ways how.
1. Rent Out Your Parking Space
Living in a big city like Toronto or Hamilton certainly has its perks. You’re close to everything, there are lots of activities for you and your family to enjoy, tons of trendy restaurants to eat at, and the ability to not even worry about driving your car around. Catching the bus or streetcar is much more convenient than getting stuck in traffic when the location you’re trying to get too is only 20 minutes away.
So, if your home has a designated parking space that you’re not using and you know someone else will appreciate it, you could consider renting the parking spot out. After all, parking is becoming an increasingly large problem in most cities and even urban areas because of the influx of car ownership and poorly designed spaces.
It’s especially hard for couples moving into a two-bedroom condo to find two designated spots for their place which will only continue to cause problems particularly in the City of Toronto. Currently, the average parking space in Toronto can be rented for $150 per month and up. Sure, you may end up needing that parking spot in time, but for the time being, there are probably plenty of car owners who would appreciate renting the spot from you while they can!
2.Rent Out Your Storage Space
Just like with parking becoming an increasingly popular problem in most cities, so is storage space. Some condos and townhouse developments include a storage space per unit (though not all do).
If you have a storage space you won’t be using, that’s another opportunity to rent the space out. Even better is if you have a parking space and storage space to rent! You likely won’t have any issues finding someone wanting to rent it either, so it’s a win-win situation.
You get paid monthly and earn extra income, and they find a solution to the parking or storage issue they’re facing!
3. Rent Out Shed or Detached Garage
You’ve probably heard of Airbnb or VRBO. Who hasn’t? They’re one of the most popular modern ways to rent places for cheap while going on vacation, a business trip, or just going away for the weekend with your friends.
If you have extra space, like a shed or detached garage that you can turn into a sweet retreat for people, it can be a great way to not only meet new people from all over the world but to make extra money too.
Will it require extra work? Yes. But it will certainly be worth it in the end. Lots of homeowners even choose to rent out their whole home for a week if they’re going on vacation themselves.
You may be wondering, who’s going to rent out a shed? But you’d be surprised as to how many people search on Airbnb for cool or unique spots to stay in for their vacation instead of a typical home or hotel.
As an Airbnb or VRBO owner, you will have to look after the cleaning, hosting, and answering of the questions (or hire someone else to do it), and you might be able to become a popular host and collect a steadier flow of extra income than you originally hoped for!
The downside? True, there may be some untidy people out there, but if there are any damages to your property, you can keep their deposit.
4. Run A Bed & Breakfast
Bed and breakfasts, also just referred to as B&B’s, are another popular accommodation people search for, especially in historic towns around the world. They run a bit differently than Airbnb’s do, but if you own a home with four or more bedrooms, it may be something to consider doing as a way to make extra money on the side.
B&B’s are exactly what they sound like – you have bed arrangements and supply breakfast in the morning (best meal of the day, if you ask me!) They’re often run privately and can range anywhere from four bedrooms to ten or eleven. Other amenities usually include Wi-Fi, TV, private bath, wine, and most importantly, knowledge of the area and suggestions on what to do. It’s usually much more affordable than staying at a hotel and service always feels more personable.
Will it be profitable right off the bat? Probably not. But over time as you gain popularity, you’ll be able to make money and begin earning a noticeable and healthy profit.
5. Welcome A Foreign Exchange Student To Your Home
Being a host for a foreign exchange student is actually rather simple and it’s quite popular in Canada. Do you have an extra bedroom? Can you provide them with three meals a day? Can you help them improve their English all while ensuring they’re safe and comfortable?
If you’ve answered yes to all these questions, prepare to be rewarded with an experience of a lifetime. You can make money while making lifelong friends who may live on the other side of the world. Whether they’re attending high school, college or university, it can become a relatively steady income for you. The steps are as follows:
- Fill out an application (they’re typically two pages long)
- Have an in-person interview, as well as a home viewing
- Undergo a background check for anyone over the age of 18 in your household
- Host your foreign exchange student!
The average amount someone in Canada will make hosting an exchange student is anywhere from $600 to $1,200 per month. It will depend on how long they’re staying with you as it can range from short to long term.
6. Pet Boarding Service
If you’re not into hosting people through a foreign exchange student program or having an Airbnb, there are still other ways to make money. Like having a pet boarding service! It’s the best of both worlds, really.
You get to be around animals and get paid to do it! Will you need to prepare your home beforehand and spend a bit of extra money first? Yes, but you can easily make it back once you start your services. Not everyone has the freedom of travelling with their pets and may not have family or friends in their city to babysit while they’re gone, so you can offer your services as a dog walker, groomer, and comfortable boarding perks.
You could even offer daily dog sitting services to those who can’t leave their dog home alone all day while they go into work. It could even turn into your full-time gig and main source of income over time. Dog boarding facilities are becoming increasingly popular and can have you earning an average of $25 to $30 a day.
7. Add A Rental Suite
I know this is an expensive option and obviously requires renovations and becoming a landlord, but many people turn their basement, upstairs, or both, into rental suites to make money. Investment properties are on the rise, especially in larger cities like Toronto.
While you have to put out more money at first, you can make it back quickly and earn a steady flow of income on the side in no time. It may seem scary managing an investment property at first, but there are many perks to turning your basement into a legal suite, such as:
- Income is earned every month
- Helps pay your mortgage off quicker
- Can add value to the property if you’re looking to sell later on
- In close proximity to your tenants if a problem arises
- You can deduct certain expenses on your taxes
Being a landlord isn’t for everyone, so it’s definitely something you need to consider long and hard before jumping into. You’re going to be the one they go to should any issues arise and there’s also the chance they could be bad tenants. You should also consider your type of property and location. If you’re closer to a downtown area or school zone, you’re more likely to have interested tenants.
8. Host Campers
If you own a large property in a location that attracts campers, you can use your lawn space as an Airbnb type of rental, only for people to pitch their tents or park their RVs for a more affordable rate. Campsites can be expensive and fill up quickly. Some campsites require campers to book their spot months in advance, so why not turn your property into a comfortable and convenient campsite?
This will require time and money to set up a proper execution, including firepits, bathroom amenities, electrical and water setups, etc., and you’ll want to take out extra insurance just to play it safe, but good things take time, right? Over time, you’ll be able to make extra money while meeting new friends.
If you’re considered residential, each city will have different requirements on whether or not you can host campers on your property. You especially won’t be able to have fire pits. This option is better for those with large country properties but who are still close to popular attractions in the area.
Start Earning Extra Cash Today
If you’re wondering whether or not there are ways to make money with your home, there certainly are. You can get paid all while remaining in the comfort of your own home. Are these eight options for everyone? No, they’re just considerations, but they have the potential to bring homeowners the extra money they were really hoping for to help them pay their mortgage off quicker.
If you have a parking spot or storage space that isn’t being used after moving into a condo, you’ll likely find someone who is interested in renting from you almost immediately, especially if you live in a big city where parking is becoming a problem. In fact, parking space renters in Toronto can earn an extra $30,000 to $50,000 a year alone.
If you enjoy meeting new people, you can earn money by hosting a foreign exchange student, turning unused space on your property into an Airbnb, or running a cozy B&B! But, if you’re more into animals (which, who isn’t?) maybe you’d be more interested in turning your home into a pet boarding service.
Whatever you’re considering doing, you should always ensure your city allows it, especially if you’re turning your basement or upstairs into a legal rental suite. There are specific guidelines you’ll need to follow. But no matter what you decide, you’ll be glad you did since you’ll be able to make money with your home and pay off your mortgage quicker than you expected!