Being a homeowner has its benefits. It’s an opportunity to invest in a property and own a piece of real estate. It also forces you to learn more about how to maintain and take full responsibility of a property. This may sound like a downfall, but it’s actually a great benefit for increasing your personal skill set. Home ownership is also great if you’d like to rent out a part of the space and earn a side income. Maintaining a portion of the home as a rental property is an excellent way to earn passive income. If the idea of dollar bills filling your bank account makes your heart beat with joy, consider these three ways to prepare a portion of your home as a rental space.
1. Rent out a bedroom.
If you live in a home where you have more rooms than family members to fill them, consider renting out a room. It’s a good idea to give the option of a furnished or unfurnished room. Make sure to provide new carpet and apply a fresh coat of paint. Make sure a person has easy access to the vents and they can easily get circulation in the room. Because renting a room gives you direct access to a person, make sure to have the conversations about cleanliness, guests, payment agreements and noise level. Once those areas are clearly stated and understood, everything else will fall into place.
2. Build a detached tiny house.
Tiny homes are becoming more popular as many people are desiring a minimalist lifestyle. If you don’t love the idea of a tiny home, that’s okay. You can still create one and put it in your backyard as a rental property. Make sure to get proper zoning approval first. A tiny home is the perfect situation for someone who doesn’t have a lot of things and is looking to rent for a specific time period.
3. Add an addition.
Adding on an addition to the home is a great way to rent out your home space. Since you’re building this room on to your house, you can have tons of control regarding the design and build it become the perfect rental property. Consider incorporating a full bathroom and a small kitchenette area with a workstation and stove for cooking. Taking this route for custom home additions San Diego will pay for itself in a few years and then add on a lot of side income for you and your family to enjoy!
Overall, the process of renting your property doesn’t need to be an arduous one. Whether you choose to use one of these routes or you decide to try something else, rental property is a great investment for the future and is something to strongly consider.