If you are looking for a way to increase your income, without putting in extra hours at the office, then it’s time to consider creating a passive income stream using your home.
Whether you are a renter or owner, there are still many ways you can use your living space to make up to $20,000 a year in passive income
Here are our top four ways to generate passive income using your home.
1. Rent your spare room to earn money
If your kids have left home and you have a spare room (or two) – consider renting them out. It could net you an extra $10,000 in a year.
If you were to charge $192 a week for your unused room, the person renting it would be getting a bargain and you would be netting yourself $9,984 a year. That’s a pretty great lump sum repayment on your mortgage, boost to your savings war chest or addition to your Superannuation fund.
You would be wise to consult a solicitor to get a basic lease in place and to setup a small bond paid in advance to ensure you are fairly compensated if something occurs. You can also decide to split utility bills or incentivize the renter via needing to only pay a small % of the bills (10%).
How do you find a house mate to rent your spare room?
If you’re currently renting alone then it’s time to advertise for a house mate. You are meant to inform your property manager (or the property owner) of your intent to do this as you likely have a rental agreement in place that requires you to get permission.
You can easily find a house mate by advertising your room on GumTree.com.au (or at your local University).
2. Rent your car space to earn passive income
If your house or apartment is in a popular location, such as in the city or on the fringe, you can lease out your car space to commuters quite easily.
Car parking is a hot commodity, especially in areas of Sydney, Melbourne and Brisbane and often commands around $350 to $500 a month which equates to up to $6,000 per year.
How do you find someone to rent your car space?
Many websites exist for promoting your car spot – sites such as parkhound.com.au are very popular.
3. Make money hosting and boarding international students
There is very high demand from foreign students for homestay accommodation close to study locations, especially in capital cities like Sydney, Melbourne and Brisbane. Why not consider renting a room out to tourists or international visitors?
Homestay is where you host an international student for a couple of weeks (up to a year) while they study in Australia.
It is cheaper for the International students (compared to short term renting) and you can make $250 to $300 a week for a student. Up to $560 for a couple.
Speak to your accountant, but in some instances this can be tax free income! A great and easy way to put up to $15,600 in your bank account for just one student.
How do you find international students for homestay accommodation?
Visit a website like www.ozhomestay.com.au to find out more information.
4. Building a granny flat for long term, easy passive income from your home
For those who prefer not to live directly with someone they don’t know (let’s face it, it’s not for everyone) – then building a granny flat is the most logical and smart way to reap passive income from an existing property.
Constructing a granny flat, or studio accommodation on your property allows for separate premises with a bedroom, kitchen and bathroom.
Depending on where you live (and the quality of your granny flat) – you can charge between $300 to $500 per week; not a bad way to net $26,000 a year.
You will need to factor in the costs of building, the repayments (if you don’t use cash) and whether you have the required permits and council setup to do so.
There are many ways to use your home to generate income
As you can see, there are a plethora of ways to use your home to make passive income. Whether you are a renter or owner, you could deploy a range of these tactics (one or many) to net well over $20,000 a year.
It can be daunting taking a stranger in to your home, so be very careful with the decisions that you make.