How to Utilise Spare Capacity in Your Home to Generate Extra Yearly Income (Even If You're Renting)
Getting a second job or working longer hours might not be the most suitable (or desirable) solution to earning more money, especially if you have a young family. However, you'd be surprised at how many different ways there are to generate extra income using the spare capacity of your home. This is what’s called a passive income stream.
The information here is useful to both renters and home owners, because it helps you utilise your living space more efficiently. Using free space correctly can, in some instances, help you generate up to $20,000 of extra income per year. Below are some of the best ways you to start building this secondary income off your home.
Spare Room, More Money
If you have kids who have left home or perhaps you have a spare room anyway, it’s certainly worth considering the idea of renting it out. Renting a room every single night for a year could earn you as much as $10,000 extra per year (based on the room being occupied every single night for a price of $27 per night). If you want more flexibility, you could choose to increase that rate per night focusing more on holiday and summer rentals perhaps instead. Doing so for fewer months of the year could still help you achieve the same earning potential but with less time in your home shared with renters. It simply depends on your situation.
Just as another example, if you could charge $192 per week at a heavily discounted rate, that’s roughly $9,984 extra income per year which could be thrown into your superannuation fund, your savings or repayments on your mortgage. There are also plenty of ways to incentivise the tenants to contribute towards bills if they plan on staying for extended periods of time. Great platforms to advertise your extra space could be AirBnB or Gumtree.com.au.
Car Space Rental
If you live in a central location then you may have a desirable parking spot that has money locked away within. If you travel to work every day by car and have an empty parking space for a certain amount of hours then you may certainly have the possibility of renting your car space out to people who work within the local area.
Car parking spaces are a very hot commodity especially in Sydney, Melbourne and Brisbane and they can fetch you anywhere from $350 to $500 per month, which works out as an additional $6,000 per year.
A quick browse on the Internet will produce plenty or websites that already accommodate people willing to rent car parking spaces. One example to consider could be parkhound.com.au.
Homestay accommodation is in very popular demand from international students, especially if your property is close to study locations in capital cities. Sydney, Melbourne and Brisbane are the most popular so why not consider renting out a room to a tourist of student for some extra cash?
Homestay is the hosting of an international student for any time from a couple of weeks and up to 1 year, whilst they study in Australia. This is a win-win situation because you can help support their education, whilst they help support your wallet with rates sitting between $250 - $350 per week for a student and up to $600 for a couple. This works out cheaper than renting for them too so most students are happy to part with their cash.
A brief chat with your accountant may also reveal that this money can be tax free, which means a great way to put an extra $15,600 into your bank account. If you are looking for a website to get started and perhaps learn a little bit more about this type of rental, visit www.ozhomestay.com.au.
Granny Flat Income
Having strangers in your home might not necessarily be the best scenario for you or your family, which is why a granny flat can be the best alternative to still monetise on your free space within the home. Constructing a granny flat or studio is the most logical way to earn an income whilst remaining separate from the tenant.
Building or refurbishing a part of your property to act as a separate premises for someone to live can fetch anywhere from $300 - $500 per week which will generate a net income of $26,000 per year. Before you embark on this challenge, it’s advisable to seek advise from your local council to ensure you are not breaking any laws or need to apply for permits.
Ultimately there are plenty of ways you can utilise the space within your home to earn extra money, but whenever you welcome in strangers it’s very important to vet those individuals carefully. A good idea is to create a set of questions that you would like answered before you agree to welcome them in, which can generally be asked over the platforms you use to find tenants in the first place e.g. AirBnb or Gumtree.com.au. Now it's over you, good luck!