The COVID-19 pandemic has reminded us of the importance of extra cash flow and has gotten many people looking for a passive income source. You can have money flowing in while working your primary job, or you can relax a little if you’ve built up a steady source of passive income.
In addition, passive income can help you bridge the gap if you are unexpectedly laid off or if you choose to take time off work.
One of the ways to achieve this is to put your home up to work. Of course, you might not want to rent out your whole house or take in a tenant, but fortunately, you don’t have to.
If you have unused space in your home – you’re in luck! We bring you a report of how people are earning money renting storage space in their homes.
Earning Money Renting Storage Space in Your Home – A Guide
If you want to achieve financial freedom, meet your retirement goals, or make the best out of what you have, generating a passive income could significantly contribute to building your wealth.
But, unfortunately, most people go their whole lives without taking advantage of what they have. Optimizing the extra space in your home and putting it to use is a great way to earn money, especially in the gig economy we live in.
The majority of people would rather pay you than give more cash to a big corporation for the same purpose. It’s time to utilize that.
What types of spaces do you have available for rent?
With different apps and websites that have made sharing space common in the past decade, there is a growing economy surrounding using your home to make money. Many opportunities are waiting; you can put almost any free corner in your home to use.
But what kind of space would be the best for a storage room? It would be best if you thought in terms of:
- a garage outbuilding
- a basement (preferably with a separate entrance)
- an attic
- closet space
- an unused bedroom
- parking space (car, boat, RV, or even bicycle parking)
Renting a garage and free rooms
Self-storage units can be very pricey, but the demand for them is enormous. People need to save their items while moving, going through a break-up, or just decluttering their homes. Especially if you want to settle somewhere smaller.
If you’re moving to a smaller home, you’ll have to store all the stuff you don’t want to throw away or sell at the moment. And most people will gladly pay less money to have their boxes stored away for that period.
With this kind of booming market, an unused room or a garage is precisely what is needed. The ideal setting has a separate entrance, which you can offer customers access to 24 hours a day, seven days a week.
Renting out parking space
You could make a lot of money simply by permitting someone to park in your driveway or garage, depending on your location. Of course, the most desirable areas are in city centers, but you can still make a nice sum elsewhere.
If you have enough space for a boat, an RV, etc., you will find that the demand is high, followed by great renting prices.
How much money can one earn renting storage space?
Renting out your space is a simple way to supplement your income. If you are someone who is looking for ways to make more money, you will be glad to hear that you can make around $2000 a year just by renting out your basement, for example.
You should expect to earn approximately half of what storage firms ask for comparable-sized storage spaces, and depending on the platform you choose to market your space, you should have no trouble finding renters.
Other factors to consider when pricing your storage unit are its location and whether it’s air-conditioned and easily accessible.
Where are people renting storage space in their homes?
There are several different ways of finding people you will rent to, and what people choose essentially depends on personal preference. Maybe you want to know the person already or let word-of-mouth do the work. Or you’d like to sign up for a listing service or one of the platforms that will be a third party in the contract.
While there are certain costs associated with using a listing service, there are many advantages. The first is exposure. You will have visibility to put your business in front of folks seeking what you have to offer.
They also assist you in avoiding some of the difficulties associated with finding renters by yourself, like verification processes and managing payments. In addition, most of them provide additional insurance coverage to safeguard your property and your tenant’s possessions.
Popular listing services include:
You can use Facebook or Craigslist too, which also represents a way of finding renters on your own. Note that you do not have a third party by doing this, and you take risks, which means it is best to have a contract to secure yourself and your property.
What are the possible risks?
As with everything, there are certain things to have in mind when earning money renting storage space. Allowing someone to keep their belongings on your property gives them a possible entrance to your home.
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You may limit when they have access to it, but you’ll have to be flexible with your schedule. There is also a danger of your tenant not paying you, ruining the storage room or other items on your property, and keeping illegal goods.
That’s why people who earn money renting storage space in their homes always need to have a protection system in terms of a written contract.
However, you shouldn’t let those risks stop you! You can securely generate passive income from your home if you take all the necessary steps beforehand.