There are several ways to boost your income if you’re a property owner. Obviously, there are renovations to boost value for your rental property that can be done, and you’ll see a serious turn on your investment. Things as simple as a fresh coat of paint, upgrading the lighting to as significant an investment of installing solar panels. But maybe you don’t own a lot of property yet, just your home, but your home does include a guest house. There are some great ways to generate income from your guest home. Let’s explore them.
Rent It Out
The first and most obvious way to generate income from the guest home is to, of course, put it on the market as a rental. Whether you decide to go with a month-to-month or yearly leasing is up to you, but it’s a great way to generate passive income if your guest home isn’t used frequently. Of course, make some small investments if the house is dated so you can get more return on your investment, but renting it out full time can help you pay off your mortgage if you have one, or generate cash to invest and further build your wealth.
Airbnb If It’s Worth It To You
Time is money, and using your guest home as an Airbnb may not be worth your time, but for many people, it is. When you rent your home out as part of the Airbnb service, you have to make sure either you or a hired cleaning crew are coming through after each guest checks out. There are also liabilities to be considered, and the income isn’t as steady as that from a rental. But, many people see a lot of success renting mainly unused properties through the Airbnb service. It’s worth considering if you’re willing to spend the time communicating with guests and being available to answer any questions should any issues arise while they are there.
Rent It As Storage Space
This may sound unconventional, but there is, in fact, a market of people looking for just this type of storage space. Maybe they have extremely valuable things they don’t want in what they might consider a seedy storage unit facility. Additionally, perhaps you have a lot of acreage around your guest home and wouldn’t mind letting people store their RV’s, campers, or boats on the property. Even better if there is a barn. Ensure you take accurate photos of the property so people know what exactly you’re offering and what’s feasible. If your guest home is old, for example, and someone is looking to store their precious items in it, including whether or not it is heated or will be in the cooler months.
List It As A Venue
Many people offer parts of their properties as venues for events like weddings, large meetings, and anything in between. While there is paperwork involved here, and you are open to certain liabilities if you’re interested in renting your guest home and its grounds as a venue, it can be a significant source of revenue for you. As a lot of events are best outdoors in the spring and summer months, you’ll want to consider certain upgrades to the outdoor grounds if you’re going this route.
Outdoor lighting, outdoor cabinets, and a seating area that is protected from potential lousy weather are a must. You might also want to consider prominent parking areas depending on how much land surrounds the guest home and the size of the events you see taking place there. Though the investments seem large upfront, listing a property as a venue can be a significant moneymaker, especially for a wedding.
Before you turn your guest home into an additional source of income, there are a couple of things to consider first. You’ll want to have a meeting with your insurance company, determining everything that is covered and, more importantly, everything that isn’t covered. You must have property insurance coverage no matter how you decide to use it. Also, make sure you’re not biting off more than you can chew. As addressed earlier about the Airbnb scenario, the same is true if you decide to use it as an event location. However, if you’re retired, this could be a fun hobby to keep you busy while making you money at the same time. It’s worth looking into, especially if your guest home is collecting dust and rarely sees actual “guests.”