With the multitude of monthly expenses that we are
responsible for, nothing feels better than earning a few extra dollars on the
side. I personally love supplemental income and have been working on
highlighting the different ways my readers can build a steady source of income
leveraging their home as a money generating asset.
While I recently purchased a rental property to build a new ‘landlording’
business, this post is a DIY approach to a fantastic way anyone can generate a
stream of income through the renting of a spare room in the home.
Renting out a spare room is perfect for empty nesters,
families with larger homes, or even families looking to earn extra
income while hanging out with fun people! The ‘Home-Rental’ sites like to
advertise how easy it is to attract renters to your home, and I agree to an
extent. The rental sites fail to explain all of the work it takes to set up the
home for this project. Without proper
preparation for such an endeavor, you may find yourself or your family at risk.
Especially if you are planning on sharing your home with strangers, I suggest
you take the time to properly list and prepare to the best of your ability.
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| Source: Guidedco.com |
Services for Renting
Your Home or Spare Room:
·
Short-term Rental sites such as AirBnB and
HomeAway work fantastic for those living in a ‘vacation’ area. Most sites have great
insurance policies
and allow you to exchange messages with the prospective tenants before agreeing
to a rental contract.
·
Long-term rentals can be a little more difficult,
but all of the major real estate sites, such as Trulia, Rent.com, and Zillow have
some sort of protection for their users. I suggest staying away from Craigslist
until you feel very comfortable with the way your rental unit is set up.
·
Alternatively, consider hosting exchange students.
Almost all local high schools and universities have exchange programs with
foreign institutions. Here is a fantastic resource to
read before committing to an exchange program. These programs are a great way
to earn a few extra dollars, have your family experience different cultures,
and even potentially cultivate life-long friendships. Most programs are also
heavily vetted and will provide great insurance policies for the hosting
families.
Cost Effective
Landlord Tips:
Regardless of what service you use, I have put together a
great DIY list to help prepare for the new renter. Following these tips will
not only provide a cost effective way to rent a room, it will also keep
everyone safe and cultivate an engaging setting that will culminate in a fantastic
rental experience.
1.
Prepare
‘The Space’. Before posting the spare room on any website, work hard to ‘beautify’
the space for both the listing photos and the upcoming renter:
o Buy
soap, towels, laundry detergent, and other supplies in bulk. These amenities look
fantastic in photos and can justify a slight increase in rent.
o Make
cleaning easy. Add screens to windows to reduce outside ‘junk’ and purchase
easy to use vacuums or brooms that can easily reach under the beds. The less
time cleaning in between guests, the more you will prosper from your ‘cleaning
fee’.
o Have
a clear theme or ‘look’ to the space. Make sure the furniture matches
the decorations; I like to use a throw rug to tie the room together. Sheets
and blankets should match the room as well. If you are feeling extra special,
you can add new paint to the walls.
o Use
a duvet instead of sheets. A duvet can be easily washed, but a full comforter
can get damaged or be expensive to wash. Using a duvet will also result in less
laundry and this means less time spent during the ‘cleaning phase’, resulting
in more money in your pocket.
o Set
up a space in your kitchen for the guest’s ‘goods’. People like their own
spaces and a note in the room description will be an added bonus amenity for
your guests.
o Get
coffee in bulk and offer it. This is especially true for short term guests as people
love coffee and enjoy that fruitful ‘free stuff’ feeling.
2.
Check Your
Renters Out. This is one of the most important steps to take before officially
renting the space. Be sure to keep your family safe. There are many services to
use, but I personally use this
resource from TransUnion as it provides information such as previous
evictions that Airbnb or Home Away leave out. To take extra precautions, follow
these tips:
o
Ask for references and actually follow-up with
them.
o
Lock up expensive belongings in a safe when not
at home.
o
Have a lock on all bedroom doors. The privacy of
your guest is just as important as your own privacy.
o
Teach your children ‘the rules’ of interacting
with strangers. In addition to being a safety precaution, this is a great
learning opportunity to teach the difference between ‘friends’ and ‘strangers’
(if they don’t already know).
3.
Provide Fun
Activities. People often rent rooms instead of entire homes because they
want interaction while on vacation. Hotels are fun, but they lack interpersonal
connections. Your new rental space can be a perfect mixture of fun and privacy!
Be sure to offer these activities without pressuring the guests to attend.
o
Offer daily breakfast. I love this perk, but
remember to account for the cooking supplies in you rent.
o
If you have more than one room rented out for
the long term, offer a potluck dinner once a month. It is always fun to see
what people cook up for a shared dinner experience.
o
Create a PDF of local attractions, transportation
options, and other pertinent information regarding your neighborhood.
o
Rent out your extra bicycle or car. If you are
renting your car, make sure you call your insurance company first!
4.
Review
Guests Properly. This is important for the ‘search results’ on the rental
website as well as information for future landlords. It is important to ‘pay it
forward’ as the phrase goes:
o
Provide accurate in-depth reviews. Don’t just
write “My guest was great”. Provide examples of reasons why you enjoyed their presence.
If the rental service asks for ways the guest can improve, be honest and avoid
rude language.
o
Bad reviews can hurt rental listings! Some
services do not offer an ‘explanation’ section if a rental experience goes
poorly. I always like to wait until my guest reviews me first and review back
accordingly.
o
Offer to become a future reference for your
renters. I suggest mentioning this as they give back the keys. It may prompt a
great review of your space!
Finally, if renting out rooms is not an option, there is
another way to leverage your home. I love the following idea:
1.
Leverage
the Backyard into a ‘Community Garden’.
In my experience, almost everyone
loves to garden. However not everyone has the physical space for such a stress
reducing activity. After you build a few raised garden beds you can rent
them out to aspiring gardeners. Consider these tips to get started:
o
Reach out to local garden communities and post a
listing for a private garden space.
o
Supply the dirt, water, and tools for a nominal
fee.
o
Keep the price low to start and as you build a
reputation the rent can increase.
o
You can even start a website about your new
garden community, write articles, gain sponsors, and earn supplemental income
this way.
Now you should have all of the tools needed to rent out an
extra room in your house and start earning some much deserved supplemental
income. If you need help writing a great rental advertisement, check out this
resource. I want to give a big shout out to Parentwin for the guest
blogging opportunity!
Author Bio: Hank is an aspiring DIY and Home industry
blogger. He loves everything about the home and garden and enjoys the smell of
fresh cut grass. Check him out on Twitter and see what he is up to next!
@homebyhank
