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Make Money From Home

Ways Your Home Can Make You Money – Bankrate.com

Your empty backyard could fill up your bank account.

It sounds a little unconventional, but you can generate revenue from your backyard, by building a home on it and then leasing the residence. According to Rent the Backyard, …….

Your empty backyard could fill up your bank account.

It sounds a little unconventional, but you can generate revenue from your backyard, by building a home on it and then leasing the residence. According to Rent the Backyard, a San Francisco-based firm that specializes in these arrangements, you could make up to $12,000 per year with such a plan. The company, which focuses on the Bay Area, handles all the permitting and construction of the detached dwelling, then splits the rent revenue with you.

Regardless of where you live, there are a variety of ways to make money renting out a portion of your property. You could convert a basement or attic space into an apartment or build a detached unit yourself. This guide will help you turn the parts of your home or lot that you aren’t using into a source of income.

Options for making an income from your property

No matter how you choose to become a landlord, you’ll want to make sure you’re setting aside enough cash to pay income taxes on the rental income (search local listings in your area to get a sense of how much you might charge). You’ll want to make sure you have a written rental agreement and perform a background or credit check on your tenants. Check out local laws, as well as any relevant rules from your mortgage lender or homeowners’ association. You should also check zoning laws to make sure the option you choose is allowed in your area.

Finally, ask your homeowners insurance company if you will need to change your policy to cover a renter. Coverage for any sort of rent-generating property is more expensive than insurance for a home you live in.

Here’s what else you need to know:

Rent out a room

Letting someone stay in an existing bedroom that you’re not using is the quickest way to start earning rental income. Renting a single room in your house is called extreme house hacking — a variation on traditional house hacking, which is renting out units of a multifamily home while also living in one of the units.

Cost: Little to none. As long as you have an extra bedroom, you’re ready to go. But you can charge higher rent by offering a furnished room, says Bill Biko, who runs a landlord education website and has rented out hundreds of bedrooms in investment homes. “Depending on the level of tenants you’re looking for, this could range from a low-end single bed, to queen- or king-sized beds with nicer furniture for higher-paying tenants,” Biko says, adding …….

Source: https://www.bankrate.com/real-estate/options-for-making-money-from-your-home/

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