There is no feeling that compares to being a homeowner and having a place you can call yours. You can be completely in charge of the decor and, more importantly, you control what happens under your roof. However, this freedom comes at a price; you need to look after your home and to finance all renovation and maintenance work. As a result, while all homeowners agree that paying a monthly mortgage is more profitable than paying a monthly rent, the maintenance costs can be a burden – even if they are also an investment in your future. Depending on the type of house you live in, you might be able to receive grants for renovation projects, as there are solutions for old buildings and green energy projects, for instance. Or, you could also get your house to pay for itself with a smart side hustle like renting your spare room.
Renting Your Spare Room
If you have a spare room in your home, you can generate stable and passive income, which you can use to finance home improvement projects, mortgage payments, and even your property taxes. Renting out a spare room is a profitable side hustle, which you can manage on top of your everyday job. Additionally, if you’ve been following the news, you’ve probably heard about the new 20% break for pass-through businesses. This means that if you set up your renting business as an LLC, you can be eligible for the deduction. You can report the profits on your individual return and you are taxed at your individual income rate.
Give That Spare Room Some Love
Before you start, you might want to redecorate your spare bedroom. As it is often the case with a spare room, you might be filled with a lot of extra “things” you don’t need but don’t want to get rid of. You can get in touch with professional moving companies to help you empty the room and find a storage facility for your belongings. You’ll notice that a fresh coat of paint and some new furniture can transform the room completely. Besides, a little personalized decor and some comfy pillows can make anyone feel at home. You don’t need to invest in premium bedsheets – you’re renting out not offering hotel services.
Make Your Guests Feel Welcome
Last, but not least, when you welcome someone under your roof, it’s essential to create a friendly relationship from the start. Therefore, you can ease things between the both of you, and add a little gift basket in their bedroom. It doesn’t have to be much, but you can place the essential toiletry products and a sweet little snack, for instance. Ultimately, it’s the gesture that matters. And it can be the start of a new friendship.
Sharing your home can feel like an invasion of your personal space. But, if you find someone you can get along with, it could also be a beneficial experience, not only financially but emotionally too. We do recommend a background check and references, especially if you have a family. You can never be too careful!
Would you rent out a room in your home for extra income? Comment below and let us know!