Earning extra income is something we all seek to do from time to time. Often in order to do this we would take on a second job. The problem with this is that it reduces our family time, reduces the time we have for self care and adversely affect our health.
However there are ways that we can earn without giving up more time with our families. We can do this from the comfort of our own home at a time that is suitable for us.
The answer is in passive income stream.
What Is Passive Income
According to Investopedia, “Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved.”
I would define passive income stream as a situation where you let your money work for you. This may be by investing in businesses or property of some sort.
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Rent Out Rooms
Many of us know that real estate is a great passive income stream. However, what if you do not have money to pay invest in rental property?
How about looking at the home you already own. Would you be willing to rent out rooms in your own home to make ends meet?
Well if you have never considered the idea I’d like to point out to you that this could be a great way to supplement your income.
- The most obvious one is the amount of money you earn from this.
You can actually make a tidy, regular income by renting out a room or rooms in your home. In this way you may be able to pay off expenses faster while still being available for your family.
- The structure is already there so there shouldn’t be much expense incurred in this as a startup business.
If you already have an extra room it is not a stretch to upgrade it for rental. This is even better if you have a self-contained room that you are prepared to let.
- Some renters can cause damages to your property beyond the amount in the security deposit.
While the law may provide a way to compensate you for the damages the time and effort it takes to remedy the problem may not be worth the hassle.
- You always need to be careful of whom you let into your home. You run the risk of exposing your family to dubious behavior.
Renters are not always persons known to you. As such it is imperative to ask for references and do a background check on persons before letting them into your home.
- Some renters refuse to leave when the time comes.
When you rent out your space you usually have a limited time limit. When you catch up on your expenses or just wish to reclaim your space some renters refuse to leave.
In this instance you may need to resort to the courts to make this happen.
Run A Bed And Breakfast
If you live in an area where many tourists like to visit, you may consider opening a bed and breakfast. In this way they will be able to get a better look and taste of the local culture while you earn.
The thing about catering to tourists is the fact that they are short term renters. As such you have more control over the time period you open your home to others.
Additionally, with a bed and breakfast you are combining two streams of earnings, catering and rental, so you earn more than a simple rental property owner.
Rent Out Storage Space
If you are not a people person and would prefer to keep your space to yourself, you may consider renting storage space instead of actual living space.
You may allow persons to store properties such as cars boats or even boxes of items.
The advantage is that you can easily do this with your garage or other external space that you are not using. Additionally, you do not have to worry about who you are sharing your home with or what habits they may pass on to your children.
- There may be legal repercussions if you do not do this properly.
Additionally, since the space is yours you may ensure you know what is being stored in your space.
It is imperative that you ensure that you complete the legal requirements of your country or region before doing this. Even though you may not think there is much risk, there is still a chance that you may not privy to some of what is being stored in your home. As such legal coverage is necessary.
In the event that the property being stored is stolen or in any way illegal you are protected by whatever laws there are in your country that covers you as a renter.
It is pretty simple to turn your home into a passive income stream. Since the space is already there converting it is not nearly as expensive as buying or building rental property.
However there are both pros and cons to this venture as well as legal hoops that you need to overcome.
You may explore these article to learn more of what you can expect when you choose to rent out rooms in your home:
7 Ways to turn your home into a money making property
Should I rent out extra rooms to make money
How Renting Out Your Space Can Backfire
If you have questions or comments about earning by renting out rooms in your home be sure to leave them in the comment section below and I will get back to you within twenty-four hours.
Before You Go
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What do you have to lose. Try it out. I will be there to guide you along the way.