When my husband and I bought our house, we discovered that we had a lot more space than we needed. We knew we would become him, but it felt like a waste to have two empty rooms gathering dust for a few years.
So we decided to rent one of our spare rooms on Airbnb. In two years of staying on Airbnb, we made more than $ 18,000 from a room that would have been mostly unused.
Now that we’ve had a baby, we’ve stopped renting the room, but that doesn’t mean I’ve stopped looking for other ways to optimize my unused space to earn extra money.
And what I’ve found is that people are looking for storage spaces and all kinds of events, which makes it easier than ever to earn money by renting your space.
What type of space can be rented?
You may not be able to rent your house or a room in your house on Airbnb, but you can probably rent event space and storage more easily than you think.
- A beautiful living room or outdoor patio can be a great place to host parties and bridal showers or baby showers.
- If you have office space, you can rent the address as a postal address for virtual businesses.
- Half of a double garage can house someone’s vintage car or serve as a workshop.
- An unused shed or part of a barn could be an affordable alternative to public storage.
- A detached garage or pool house could serve as a showcase or an artist’s studio.
- Part of your backyard can be used as storage for boats or RVs.
The possibilities are almost endless. When you get creative, you can turn any unused space into profitable passive income. Just be sure to check local ordinances or, if you live somewhere with a homeowners association, to verify that it is possible to rent your space.
You may also want to check with your insurance company to see what coverage you have or if you should consider purchasing a blanket policy.
7 places where you can earn money renting your space
While you do have to pay some fees to use a listing service, you get two benefits. Visibility is first. You will get your space in front of people who are looking for exactly what you are offering. The other is payment processing.
Some companies also offer additional insurance coverage that you can purchase to protect your property and your tenants’ belongings.
It’s great to make money renting your space. But if you have a tenant who does not pay or is the victim of theft and your tenant’s property is stolen, then having the protections offered by a third party will be invaluable when turning your home into a business.
Neighbor.com offers an affordable way for people to store their belongings or vehicles on their own. The website claims that it offers storage and parking spaces for half of what storage companies charge.
You can find lots, garages, dormitories, and even storage facilities on Neighbor.com. This could be a great way to student for passive income if they have a spare locker or parking spot on campus but don’t have a car.
Renting a shed or your basement are also options to earn money with the property.
Jennifer Walden, WikiLawn’s director of operations, rents her shed with Neighbor. Walden set his price at $ 50 a month and the tenant pays Neighbor directly. After a 4.9% processing fee and $ 0.30 cents for each payment, Walden is paid the rest through the platform.
“While we require that my husband or I be home when the tenant comes in, they can text us and walk in the door with the key to the shed. The only thing we have there is what they are storing, of course, ”Walden said.
It’s free for publish your space on Neighbor.com. Hosts are protected by $ 1 million in liability insurance and are guaranteed a monthly payment while storage space is occupied, even if the renter stops paying.
ShareMySpace is a professional event space rental website that offers an easy way to find and reserve spaces and venues for work, events, art, sports and more. It is good for people who have a non-residential space that can host events like weddings and banquets.
It costs $ 49 per month to list a private space or $ 9 per month for nonprofits and public spaces.
Once your space is listed, it can be searched and reserved, and you will be notified of any reservation requests. The more details and photos you add, the more likely you are to be successful on the platform.
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StoreAtMyHouse provides peer-to-peer storage solutions around the world. You can rent storage space in your home, garage, and business. StoreAtMyHouse claims that storage providers can earn anywhere from $ 300 to $ 3,000 per year, depending on where they are located and the size of storage available.
StoreAtMyHouse does not offer additional liability insurance for renters or storage providers and states that if it is available it will be an additional cost to the owner.
Listing and renting your storage space through StoreAtMyHouse is free, but there is a steep 15% fee if you want to use their automated billing system. You can also pay a one-time fee of $ 35 to have your post appear on the website.
PeerSpace offers unique spaces for meetings, photo sessions, parties, presentations and other types of events. The spaces that work best in PeerSpace are industrial, old, modern, or in some way off the beaten path.
It’s free to list your additional space through PeerSpace. You can set your own price, charge by the hour, and you’re also protected by $ 1 million liability insurance. Payment is deposited directly into your bank account after each event minus a 15% service fee.
Stashii is a Canadian peer-to-peer storage and parking market. Listing your space on Stashii is free and payments are made the first week of each month. The only fee is a 3% payment processing fee per transaction.
While Stashii offers $ 50,000 of insurance to renters, it does not offer the benefit to storage owners. Stashii claims it will help you manage rulings including but not limited to payment, removal of storage due to an extended stay, and lost item claims made by tenants.
6. Word of mouth
Sometimes renting your extra space can be as easy as getting the word out.
Parking in Washington DC is notoriously stressful, and parking lots charge premium prices. When FreedomRep’s Ilir Salihi moved home to Washington, DC, she learned that some of her neighbors were renting their commuter garages during the workweek.
All Salihi had to do was tell people that she was renting her garage and they quickly offered her $ 100 a month for it. They signed a six-month contract to test the arrangement, giving the tenant access to the garage from 7 am to 7 pm Monday through Friday.
“I had a street parking permit for my own car and I still had the storage space in the garage for my own use. This turned out to be an easy-to-manage passive income stream that I continued for a couple of years, ”said Salihi.
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7. Facebook or Craigslist
You can also try advertising your additional space on your own. Facebook Marketplace and Craigslist are high-traffic websites, and while they’re not specifically for storage, they can attract more looks to your list.
Unlike word of mouth, you don’t have anyone who can vouch for potential tenants, so be very careful when interviewing people. It is also a good idea for tenants to sign a contract to protect you and your property from liability.
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How much money can you earn for your space?
It’s easy to earn extra money by renting your space. You can expect to earn around 50% of what storage companies charge for storage units of comparable size, and you can easily find tenants based on the platform you use to advertise your space.
Where the storage is located, whether it has air conditioning, and accessibility are other factors to consider when pricing your space.
You can also test the prices before deciding on one. “From time to time I would create ads on craigslist, but this was more to test the market and get an idea if it was charging a reasonable price for the parking space,” Salihi said.
And don’t forget to write off eligible expenses on your taxes related to the cost of renting your space.
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Risks of storing other people’s things
Each income opportunity carries its own unique risks. Letting other people store your things on your property gives them access to your house or land. You can set restrictions on when they can access it, but then you will have to adapt to your time.
Also, you run the risk of your tenant not paying you, breaking down your shed or other things on your property, and storing illegal items. Even with the protection of a company like Neighbor, you still rent your space at your own risk.
Don’t let those things put you off. By taking all the necessary precautions, you can easily and safely generate passive income with your house or outbuildings.