Owning property opens up a range of opportunities to generate extra income. Whether you’re looking to cover a mortgage or save for something big, there are multiple ways to transform your house into a money-making asset.
In this article, we'll explore various alternatives and ideas to help you make money with your property. From renting out spare rooms to offering your property for short-term events, here are 10 creative and practical methods to increase cash flow.
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What type of property is best for making money?
The best type of property for making money largely depends on your investment goals, risk tolerance, and market conditions.
Here are some property types that are commonly considered good options for generating income:
- Residential rental properties: Any rental property can provide steady rental income, though single-family homes are often easier to finance and manage than those with multiple rental units (duplexes, triplexes, etc). On the other hand, owning multiple units allows you to collect multiple rents, which can increase cash flow.
- Commercial properties: These provide stable income from long-term leases and can yield higher returns than residential properties. Retail spaces in high-traffic areas can be especially profitable; tenants typically sign longer leases. Owning a warehouse or distribution center can also provide consistent income, especially with the growth of e-commerce.
- Vacation rentals: How to make money with your property online? Properties in tourist destinations can command higher nightly rates through platforms like Airbnb or Vrbo, often generating more income than traditional long-term rentals.
- Real Estate Investment Trusts (REITs): Investing in REITs allows you to earn money from real estate without directly owning properties. They often pay dividends and can provide good returns, especially in a booming market.
- Fix-and-flip properties: Buying distressed properties, renovating them, and selling for a profit can yield significant returns if done correctly. This requires market knowledge and renovation skills.
- Land: Raw land can appreciate in value over time, and you can earn income through leasing it for farming, cell towers, or other uses. However, land investments may require longer holding periods.
- Storage units: Owning and operating self-storage facilities can be a lucrative investment with low overhead costs and high demand in urban areas.
- Mobile home parks: These properties often require less investment than traditional real estate and can provide steady income through lot rents.
- Mixed-use properties: Properties that combine residential and commercial spaces can diversify income streams and mitigate risks associated with relying on a single tenant type.
- Student housing: Properties near colleges or universities can yield high returns due to consistent demand from students, particularly in areas with limited rental options.
So, what type of property makes the most money? There's no one answer. To find what will make you the most money, it helps to research the market, understand tenant needs, and evaluate potential returns. Consider consulting with real estate professionals to find the best property types that align with your financial goals.
How to make money with your property: 10 ideas to consider
Even if you aren’t in the market to buy a property for the sole purpose of generating income, here are some creative ways to use your existing home to make money. Whether you’re looking for a side hustle or want to fully maximize the potential of your property, these options range from passive income streams to more hands-on ventures.
1. Rent out a room (or your whole home)
One of the most popular ways to make money from your house is by renting it out. How to make money with a rental property? It can be done in a few different ways:
- Long-term rentals: To make money with extra space in your house, you can rent a spare room to a tenant on a long-term basis. Connect with potential renters on platforms like Craigslist or Zillow.
- Short-term rentals: You can list a room or your entire home on platforms like Airbnb or Vrbo for short-term stays. This option is great if you want to rent out your property when you're away or during local events when demand for accommodation is high.
Pros:
- Steady or flexible income
- Allows you to utilize unused space
Cons:
- Long-term tenants require a more permanent commitment
- Short-term rentals may involve more management and cleaning
2. Host events or offer your home as a venue
If you have a unique or spacious property, it could be an excellent location for events. Hosting weddings, parties, or corporate retreats can bring in significant income. Companies like Peerspace allow property owners to rent out their homes for events as well as photoshoots and film productions (more on that in #8).
Pros:
- High payout potential, especially for weddings or corporate events
- Flexible schedule depending on your availability
Cons:
- Event hosting may require additional insurance or permits
- Your home may need to be in top condition at all times
3. Start a home-based business
If you have a particular skill or hobby, turning your home into a business space can be profitable. Your property can serve as your yoga studio, daycare center, or home bakery.
Pros:
- You’ll save on renting an office or commercial space
- Work from the comfort of your home
Cons:
- Some businesses require zoning permits and/or licensing
- You might need to modify your space to meet business needs (e.g., kitchen upgrades for a bakery)
4. Rent your driveway or parking space
If you’re wondering how to make money from your property and you live in a busy city or near a popular event location, your driveway or parking space can be a goldmine. Many people are willing to pay for a secure parking spot, especially during are sports events or festivals. Websites like JustPark or SpotHero help you list your parking space for short-term rental.
Pros:
- Easy to manage and minimal interaction with renters
- Steady income stream with no need to share your living space
Cons:
- Income depends on location demand
- Limited availability if you need the space for personal use
5. Lease your land
Do you have a large backyard or some unused land? Leasing it out can bring in passive income. Consider offering the land to farmers for crops, or renting it to companies that need space for cell towers or billboards. You can even explore hosting outdoor events like camping or glamping (luxury camping) experiences.
Pros:
- Minimal effort required to maintain the land
- Passive income that requires no ongoing work
Cons:
- Some options may require permits or legal agreements
- Long-term contracts can limit the use of your land for other purposes
6. Install solar panels and sell energy back to the grid
If you're environmentally conscious and looking to make money in a sustainable way, installing solar panels on your home can be a great option. Many states offer incentives for homeowners who generate solar power, and some utility companies allow you to sell excess energy back to the grid.
Pros:
- Reduce your own energy bills while generating income
- Increases the value of your home
Cons:
- Upfront costs for installing solar panels can be high
- Income depends on your location and the amount of sun your home receives
7. Offer storage space
If you have extra space in your basement, attic, garage, or shed, consider offering storage for people who need it. With services like Neighbor.com, you can list your available space for people to store their belongings. This is an excellent way to earn passive income without sharing living areas.
Pros:
- Requires little to no management
- No major alterations to your property are necessary
Cons:
- You may need to invest in additional security
- Legal considerations depending on the items stored
8. Rent your home for film or photoshoots
Depending on where you live and the uniqueness of your property, you might be able to rent it out to production companies for films, commercials, or photoshoots. Platforms like Giggster can help connect you to media professionals looking for shooting locations.
Pros:
- High one-time payments for rentals
- Little long-term commitment
Cons:
- Could be disruptive to your schedule and daily life
- Some wear and tear on your home during shoots
9. House hacking
House hacking involves renting out parts of your home (such as a basement apartment or additional bedrooms) while you live in another part. This helps you cover your mortgage and other expenses while maintaining ownership of the property. Many people house-hack through long-term leases or short-term rentals.
Pros:
- Reduces your housing costs
- Potential for significant profit if done correctly
Cons:
- Requires a higher level of property management
- You’ll be living in close quarters with tenants or guests
10. Become a landlord
If you want to know how to make my house pay for itself, a good idea is to become a landlord. If you own more than one property or can purchase a second home, becoming a landlord and renting it out can bring in consistent income. You’ll be responsible for property management, repairs, and tenant relations, but the income can be substantial, especially in high-demand areas.
Pros:
- Steady long-term income
- Property can appreciate in value over time
Cons:
- Requires a significant investment upfront
- Managing tenants and maintaining the property can be time-consuming
Bottom line
Your home is one of your most valuable assets, and there are many creative ways to turn it into a money-making machine. Whether you’re renting out a room, hosting events, or even installing solar panels, you can leverage your property to generate additional income.
Consider your lifestyle, location, and the amount of effort you’re willing to put in, and choose the method that works best for you.
FAQs
Do I need special permits to rent out my home or host events?
Depending on your local laws, you may need special permits or licenses to rent out your home, host events, or run a business from your property. Check with your city or county regulations.
How much money can I make from renting my property?
The income potential varies widely based on location, demand, and the type of rental or business you’re offering. For example, short-term rentals can bring in more money during peak seasons (which typically depends on the region and the type of property), while long-term rentals provide consistent income.
Are there tax implications for making money with my property?
Yes, any income you earn from your property is generally taxable. If in doubt, consult with a tax professional to understand your obligations, including how to deduct expenses like maintenance and upgrades.
How to make money with safeguard properties?
Making money with safeguard properties typically involves leveraging opportunities in real estate, particularly in managing, maintaining, or investing in vacant or distressed properties.
What are the risks of renting out my home?
Risks include property damage, dealing with problematic tenants, or fluctuations in demand. You should have insurance, clear rental agreements, and a plan for managing potential issues.
Can I make money without renting out space in my home?
Yes, there are several ways to make money without sharing your living space, such as renting out your driveway, leasing land, or offering storage. These methods can provide passive income without much disruption to your daily life.