If you’re a homeowner, chances are housing costs are your largest expense. According to Zillow, the median mortgage payment eats up 20 percent of households’ income each month.
But what if you could cover the cost of your mortgage without working extra hours or taking on a side hustle?
Although that might sound like a pipe dream, it’s actually possible. In fact, with some ingenuity, you can earn passive income that covers your mortgage and have money left over.
Here are five ways you can turn your home into a money-making machine.
1. Rent out your lot to tiny house dwellers
The tiny home movement is booming, as people look to save money and downsize their lifestyle. However, one of the biggest obstacles tiny homeowners face is where to park their house. Many counties prohibit tiny houses unless they are on a lot with a traditional home.
If you have a large lot or live in the country, you can make money by renting the space out to tiny house enthusiasts. You can even charge more if you can offer amenities like electric, septic, or water hookups.
However, even if you don’t have the utilities available, you might be able to rent out a lot anyway. Many tiny homeowners live completely off the grid thanks to solar panels, water reservoir stations, and composting toilets.
Depending on your location and the amenities you offer, you could charge anywhere from $350 to $1,500 per month on sites like Try It Tiny. However, check your local zoning laws and county ordinances to ensure that it’s permitted in your area before renting out your lot.
2. Allow advertising agencies to film commercials in your home
If you’re willing to deal with cameras, a film set, and groups of strangers in your home, you can make an average of $1,500 a day by renting out your home to commercial producers, according to Set Scouter.
You don’t have to live in New York or Los Angeles and your house doesn’t have to be large or lavish, either. Many advertising agencies look for modest houses for their commercials.
You can start earning money by listing your home on Set Scouter, a tool producers use to find homes in the area they’re filming.
Although you can make a lot of money renting out your home, keep in mind that it’s not reliable income. You could book three commercials in one month, and then not book anything else for a year or more.
That unpredictability means you should treat commercial shoots as windfall, and not count on the cash for your regular bills.
3. List your home on Airbnb
Cost-conscious travelers are increasingly skipping hotels for budget-friendly rentals through sites like Airbnb. In fact, over 200 million people have stayed with hosts since Airbnb’s launch in 2008.
If you have a spare bedroom, you can rent out that space for a few nights a month to make extra income. Depending on where you live, the rental fees can add up to hundreds every month.
According to Priceonomics, Airbnb hosts earn $924 a month, on average. Even better, getting started is quick and easy. You can list your home and start accepting reservations in just a few minutes.
4. Sell parking spaces
If you have a seldom-used garage or an empty reserved parking space, you can make as much as $375 a month renting it out, according to one listing found on CurbFlip.
Sites like CurbFlip and JustPark allow you to advertise your space, and travelers or daily commuters can rent it from you.
If you don’t want to give up your parking space for a whole month, you can choose to rent out your space on a daily basis. One listing on CurbFlip near an airport charges $30 per day.
5. Let people store their items in your home
Storing extra stuff can be expensive.
One study from Marcus Millichap found that, as of 2015, the average climate-controlled unit in a self-storage facility costs $1.44 a square foot.
At that rate, a basic 10-by-10-foot unit would cost $144 a month, or $1,728 a year. Sparefoot found that, in more expensive areas like San Francisco, storage space costs are nearly double that number.
Budget-conscious renters looking to save money try to find alternatives. If you have an unused shed, spare bedroom, or closet, you can turn that empty space into regular, monthly income.
Store at my House is a company that connects renters with homeowners who have extra space in their homes. That service claims renters can save as much as 50 percent on storage costs, while you can make passive income from unused space.
For example, if a customer wanted to rent a 300 sq. ft. unit in Brooklyn, New York through American Self Storage, it could cost over $700 a month, or $8,400 a year. If you had the same amount of space available in that area, you could charge $350 per month and earn $4,200 a year without doing any real work.
Store at my House is available all over the country, and it takes just a few minutes to list your space for rent.
Using your house for profit
Since you already made a huge investment by buying a home, it makes sense to use it to earn more money. Consider using one (or more) of these strategies to earn regular income. Sign up with the sites mentioned to make easy money just by being a homeowner.
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 5.87% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 5.87% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
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2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Savings example: average savings calculated based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were disclosed. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
Application detail: 5 minutes indicates typical time it takes to complete application with applicant information readily available. It does not include time taken to provide underwriting decision or funding of the loan.
Instant rates mean a delivery of personalized rates for those individuals who provide sufficient information to return a rate. For instant rates a soft credit pull will be conducted, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
Total savings calculated by aggregating individual average savings across total borrower population from 9/2013 to 12/2017. Individual average savings calculation based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were provided. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate||Visit SoFi|
|2.47% – 5.87%1||Undergrad & Graduate||Visit Earnest|
|2.47% – 8.03%4||Undergrad & Graduate||Visit Lendkey|
|2.95% – 6.37%2||Undergrad & Graduate||Visit Laurel Road|
|2.48% – 6.25%5||Undergrad & Graduate||Visit CommonBond|
|2.72% – 8.32%6||Undergrad & Graduate||Visit Citizens|