If you’re like most people, you likely have some unused space in or around your home that you could be renting out and making money. In fact, many people are now making a good living by renting out their space. Demand for space outpaces supply, making it difficult for renters to find a place to store their belongings at an affordable price.
This has created an opportunity for homeowners to rent out their unused spaces to earn some rental income without much work. Getting started is easy – all you need is a bit of extra space. Here is a comprehensive guide showing you the best ways to make money renting out your space!
What Kind of Space Can You Rent Out?
There are various legal and social factors to consider when deciding to rent out extra room or space on your property. However, you can rent out virtually any unused space if you meet the set requirements. You can earn money while still being in complete control of your space.
Here is an overview of nine types of spaces that you can legally rent out for a few extra bucks:
1. Renting Out Your Basement
The basement is one of the least used spaces in any home. Why let it sit and just collect dust? Turn your basement into easy passive income instead! It’s recommended to make sure you give the entire basement a thorough cleaning before letting anyone store their belongings down there.
2. Renting Out an Unused Room in Your House
If you have a room in your house that isn’t currently in use, you could be turning it into some easy income instead.
Is it legal to rent out an empty room in your house? It is legal in most states, but it is forbidden in some jurisdictions and Homeowners Associations. Additionally, your homeowner’s insurance policy may prohibit you from renting out unused space in your house. However, the insurance increases your premiums in most cases, but it may be worth the extra income.
3. Renting Out Your Parking Space
Do you have an extra parking space that you don’t use? Why not turn it into some cold hard cash instead of letting it go to waste?
Many motorists will gladly pay you to use your parking space. This is especially true if you live in a convenient location, or a densely populated area. The best part about renting out a parking space is you usually don’t have much in terms of maintenance or upkeep, so you’ll enjoy 100% of the profits. Pricing and demand for your space will greatly depend on your location.
4. Renting Out Your Driveway
Parking is a big problem in many big cities, but driveways in residential locations make for excellent parking spots too. There is a thriving and growing industry built around this concept. Renting out your driveway is just as easy as renting out an empty parking spot.
5. Renting Out Your Garage
An empty parking spot or driveway just doesn’t cut it for some motorists, especially those driving high-end cars. These motorists prefer a garage for the added security not only from the sun and other weather elements but also from potential car thieves and vandals.
You can also rent out your garage for other purposes besides parking. For example, it can serve as an excellent space for others to work on their cars if you don’t use it often. People may also prefer to store their items in an easily accessible garage.
6. Renting Out Your Shed
A shed shouldn’t sit empty while it could earn you decent passive income, albeit you may be responsible for some maintenance. A shed is a versatile rental space that could serve several purposes, including storage. However, the amount you can charge will depend on the shed’s overall design, size, and location.
7. Renting Out Your Attic
The attic is also one of the least used rooms in the house, just like the basement. The attic can make an ideal storage space with some adjustments and renovations. Ensuring proper lighting and access is available can allow you to rent this space. Be sure to disclose if you have heating or air conditioning in your attic, as some people may not want their items exposed to the elements.
8. Renting Out Your Warehouse
Demand for warehouse space is going through the roof as the e-commerce industries grow. You can make a small fortune, depending on factors such as your warehouse’s size and location. Ease of access is also a significant consideration when renting a warehouse. Whether or not you have a loading dock is also a nice feature to mention in your listing.
Warehouses offer large spaces that can accommodate large amounts of goods. Additionally, the area can be customized to serve a range of unique purposes, such as storing and preserving perishable goods. If you have a warehouse in a favorable location, you could even convert it into office space.
9. Renting Out Your Storage or Shipping Container
Renting a storage unit (or a shipping container that doubles as a storage unit) has many benefits for people looking for extra storage.
Most companies charge thousands of dollars per year, and you can charge just as much. However, you will be responsible for maintaining ideal storage conditions such as security.
How Much Can You Earn Renting Out Your Storage Space?
Storing other people’s stuff can help you earn decent extra cash. However, how much money you stand to make depends on factors such as:
- The location and size of your storage facilities
- The quality of amenities such as security and privacy
- Extra amenities such as preservation for perishable goods
Because you can set your own prices, you’re able to ensure you get market rate for your storage. View what others in your neighborhood are asking for similar space.
It is important not to overprice your storage options, or else you will lose prospective renters. Here is an overview of the standard pricing for different types of parking and storage spaces, according to Neighbor:
- Basement: $200 – $700 per month
- Unused Room: $50 – $200 per month
- Parking spot: $50 – $300 per month
- Driveway: $50 – $150 per month
- Garage: $100 – $600 per month
- Shed: $50 – $200 per month
- Attic: $100 – $250 per month
- Warehouse: $500 – $2,500 per month
- Shipping Container: $50 – $200 per month
It is also essential to factor in monthly bills and expenses such as heating. As such, it is advisable to take all the necessary precautions to avoid any additional cost that may eat into your profits. Neighbor allows you to fill your bank account with easy money by setting your own price on your empty space.
How to Maximize Your Earnings While Renting Out Storage Space
Your earnings from renting out extra space can vary considerably, as illustrated by the cost of storage and parking facilities. However, pricing depends on a range of factors, some of which are within your control.
Tweaking these factors can increase the value of your storage space, hence making you more cash. Here are some tips on how you can make extra money from renting out your storage space:
- Make the storage facility presentable by making necessary repairs and renovations and maintaining a good appearance.
- Provide reliable security and privacy for your clients and their stuff.
It is also prudent to avoid liabilities that can cost you more money than you will be making. For example, it is essential to ensure that you are well within your legal rights to rent out the storage space, or else you could incur hefty fines. It is also advisable to check with your local government and if applicable, your HOA, to avoid fines and other penalties.
Consider whether you live in a HCOL or LCOL area, usually you can charge more in a higher cost of living area.
Do I Need Insurance to Rent Out My Space?
Yes, you need insurance coverage to rent out different types of unused space on your property. Renting out extra space can sound like an opportunity to make quick money, but there are risks involved in the rental business.
Insurance helps you save money in case you incur losses from the renter – it may also be a legal requirement in some jurisdictions. For example, you can rent out a spare room to an untrustworthy renter only to come back one day to find them having ruined your entire home.
However, you can save yourself the cost of getting insurance by working with Neighbor as a business partner, the Airbnb of storage spaces. The company offers hosts coverage of up to $1,000,000 in addition to other benefits such as maintenance to help you earn a truly passive income.
You Can Make Money Renting Out Your Space
So, do you have an empty bedroom or any other unused spaces on your property? You can use them to generate income on the side by renting them out for any of the purposes discussed above. However, it is essential to do your due diligence and ensure that your rentals are legal and safe for the renters. It is also prudent to offer the best services possible to maximize your income.
Samantha uses her BS in Finance and MBA to help others control their finances through budgeting, saving, investing, side hustles, and travel hacking. Due to following the FIRE Movement’s principles, she was able to quit her high-stress job in the financial services industry in July 2019 to pursue her side hustles. She is now a full-time entrepreneur, freelancing coach, and blogger.