Mortgages. Electric bills. Unexpected repairs. Owning a home can be quite expensive. Every day it seems like there is a new bill to pay or something to fix. Didn’t someone tell us owning a home was a great investment at one point in our lives? We are spending so much to maintain this “asset” that sometimes it doesn’t feel like it's worth it.
I’d like to flip the typical script on costly home ownership and talk about ways that this asset of ours can make US some money.
Here are 3 quick ways your home can make you money:
1. Use Airbnb
If you’re not interested in someone living with you permanently, but you’d be open to a cash-producing visitor every once in a while, Airbnb could be a great option.
On my podcast a couple of months ago, I interviewed Victor Mangona, an entrepreneur who is making a killing on Airbnb. He lives in the metro Dallas area and rents out his home on Airbnb for a pretty penny. He and his wife Kate rent it out on certain dates when they're not there. “We are now making enough money to save 75% of our income each month and cover the cost of our mortgage,” said Mangona referencing their current Airbnb situation.
You may not want to rent your entire home to someone. Totally understandable. How about renting a room in your house on a non-permanent basis? A lot of people on Airbnb will rent a room in their home to business travelers who would rather stay in someone’s home than a hotel. As a guy who travels a lot for business, I know that when I travel to major cities like San Francisco, Boston or New York, it can be hard to find available and moderately priced rooms. Take advantage of this business traveler market and start generating some income with the available rooms in your house! Depending on where you live this could mean some major cash in your pocket immediately.
How do I know if my place would do well on Airbnb?
“Airbnb is very location dependent,” said Mangona. “If you’re near a city center or an entertainment district, those places can Airbnb very well.”
Go on Airbnb and check out your area. Does your location have other similar rentals? If so, grab a handful of comparable homes and see how much they are renting for. This will give you a good basis for comparison and help you price your home or available room competitively.
2. Turn Your Trash Into Cash
Did you know there is money hanging in your closet? There’s also money in that drawer you haven’t opened for a year. There’s even $50 sitting in your kid’s toy box!
I’m not talking about loose cash. I’m talking about taking the stuff that we don’t use anymore like clothing, electronics, furniture and toys and selling them for fast money.
Over the last couple of years, my wife and I have sold over $1,000 worth of our used things on Craigslist, eBay and Facebook Marketplace (mobile only). It has not only put money in our pockets, but it has given us a sense of freedom by eliminating the STUFF that’s not really needed in our lives.
Set aside some time this weekend and walk around to each room in your house and look for items that you simply don’t use anymore. When you come across an item you are considering selling, ask yourself some questions:
- Do I really NEED this?
- Does this item bring me joy?
- Do I want to keep it more than I want cash in my pocket today?
What type of things will sell easily?
Here are 12 easily sellable items that could be sitting around your house right now:
- Designer Handbags
- Smart Phones
- Gift Cards
- Baby Supplies
- Kid’s Toys
One important thing to remember if you’re selling on Craigslist, Facebook Marketplace or any other in-person exchange, only accept cash. No checks, money orders or IOUs. Show me the money!
My wife @Nicolehill827 helping our family spend less so we can live more #personalfinance https://t.co/babqjS3hrx
— Andy Hill (@AndyHillMKM) February 9, 2017
3. Rent Your Driveway or Parking Space
If you live in a major city, parking can be a nightmare. Trying to find the best parking option is a hassle and when you do find a spot the costs can be tough to swallow.
In this on-demand world we live in, businesses like Monkey Parking, Just Park and Spot are helping commuters find a better way. These apps and services allow people to post available parking spaces they own or have access to and rent them for money.
Imagine someone in Chicago who lives near Wrigley Field where the Cubs play. They have a driveway, but they don’t own a car because they use public transportation. Don’t you think this person would be able to rent their parking space easily? Oh yeah! Now they can do this more easily with the help of these new services.
You can also rent spots on a daily, weekly and even monthly basis. This would support people who are looking for a prime parking spot near their place of work. They get a better spot and you get the money. Win-win!
These apps work well in big cities like Boston, Chicago, San Francisco, DC, Los Angeles and Miami. Just Park is also well established in the UK.
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