Key Takeaways
- Renting a room can significantly reduce your monthly mortgage expenses.
- Consider Airbnb for short-term rentals to maximize income from spare rooms.
- A home-based business can offer tax advantages and additional revenue.
- Renting storage space can provide steady passive income with minimal effort.
Article Summary
For generations, roommates have been a common way to save on rent. Roommates are just as beneficial when you own a home. They can help cover mortgage costs, split utility expenses, and assist with household chores, which saves time and money.
Homeownership opens the door to a variety of financial opportunities, from reducing your loan balance with each payment to building home equity over time. These advantages can help you move toward greater financial security. You can also save money by refinancing to a lower rate when market conditions improve—use our refinance breakeven calculator to see if refinancing makes sense for you.
Owning a home isn't just about having a place to live—it also offers ways to earn extra income.
Whether it's renting out space, starting a home-based business, or generating passive income, a new home can provide revenue to cover expenses and support financial goals.
With a bit of creativity, a home can become an asset that works for its owner.
Here are 10 ways to make money with your new house.
1. Get a Roommate
For generations, roommates have been a common way to save on rent. Roommates are just as beneficial when you own a home. They can help cover mortgage costs, split utility expenses, and assist with household chores, which saves time and money.
However, living with roommates isn't always easy. To avoid complications, set clear guidelines and have them sign a lease to protect your long-term investment.
2. Rent Out Your Yard
Big yards, backyard pools, and guest houses can help pay bills. Homeowners can advertise and rent out amenities at hourly or nightly rates.
Apps like Sniffspot allow you to rent your yard to pet owners, while Swimply lets you rent your pool by the hour. These ventures might not cover the entire mortgage but can help with maintenance and other expenses.
3. Grow a Garden
Gardens can provide fresh fruits and vegetables that are simple to grow in most climates. Homeowners can sell extra produce or preserved goods like jams or pickles.
Flower gardens can also produce blooms and seeds to sell. For those with larger gardens, consider renting them for photography or small events. Dried flowers can be sold for crafts, making the most of the garden's beauty.
4. Create and Sell Products
A new home may be the perfect place to launch a small business. Running a business from home can offer convenience and potential tax deductions for a home office.
Here are a few popular home business ideas:
- Home baking business
- Pet treats and accessories
- Jewelry art
- Woodworking and furniture refurbishing
Some home businesses require certifications, licensing, or permits. Be sure to check with the local government to meet any necessary requirements.
5. Offer Extra Space for Storage
Homes with extra space in a garage or shed can rent that space as storage. Storage units cost an average of $90 a month, and climate-controlled units are more expensive. Homeowners may be able to offer a lower-cost alternative.
Renting storage space can be flexible. You may choose to accommodate short-term rentals for those between homes or offer long-term options for items like boats or RVs.
6. Open a Home Studio
Home studios can be a perfect place to pursue a creative hobby and make extra cash. Artists, gamers, and others can establish a space to build a brand and generate profit.
The best part is that you'll be doing something you love.
7. Turn Your Home Into a Set
Owning a home in a popular film city such as Atlanta or Palm Springs presents an opportunity to rent it out as a movie set. You don't need a million-dollar mansion since many films use regular homes.
Commercial shoots also need home sets, even in smaller cities. Consider connecting with location agents, local film commissions, or apps like Giggster if you're interested.
8. Host Events
Large properties can be rented for weddings, concerts, and other events. This may require special permits, outdoor electricity, and bathroom arrangements, which can be costly. However, a single event can generate significant income.
If located in rural or agricultural areas, consider agri-tourism activities like seasonal mazes, wine tastings, or mini-markets to celebrate local food production.
10. Try Tutoring From Home
If you have a teachable skill, tutoring can be a great way to earn extra income. You can offer lessons in areas like academics or arts from home or virtually.
Private academic tutors average $20 an hour, and licensed teachers may earn around $56 per hour. Music teachers average $41 per hour for lessons.
As a homeowner, there are unique opportunities to earn extra income that renters may not have. Whether you choose to rent out space, start a business, or offer lessons, your home can help you achieve your financial goals.
