Wouldn’t it be nice if somebody else paid part of your mortgage payment every month? Or perhaps, wouldn’t it be nice if somebody paid your whole mortgage? There are a few ways you can supplement your monthly mortgage with new found income from your real estate.
The first and easiest way to supplement your mortgage is to rent out a detached living space. If your home has some sort of guest house, you could rent it out to a qualified tenant and keep an eye on your property. In my market, there are several detached garages with what appear to be full bedrooms or potential 1-bedroom apartments on the space above. If you don’t currently have a detached structure, you could build one with renters in mind. You would need to check with your city/county ordinances to see if your home is zoned in such a way that would allow for multi-families to live on the same parcel.
You also could rent out a room within your current home. Sometimes a room or two can be locked off from the rest of the house and fully separate the two areas. Typically a home with a full basement is a good candidate for this type of structure. I’ve also seen two-story homes where the owner added a private entrance into a portion of the house to split the living areas. Some owners are even comfortable with renting out a room within the home and allowing the tenant to have full access to all common areas. Careful screening of tenants on the front end will make for a much more enjoyable rental experience for all involved.
One of the more popular ways to supplement your mortgage is to consider posting a room, rooms, or your whole home for rent on a website like Airbnb or HomeAway. Home sharing sites appeal to travelers who desire a unique renting experience or want to save a dollar or two over more expensive hotel accommodations. If you decide to rent out your whole home, you’ll need to consider where you’re going to stay (and any associated costs or the cost of a vacation); but most home owners on Airbnb (for example) rent by the room. Or in crowded (and expensive) cities like New York and San Francisco, the owner may end up crashing on their own couch while giving their bedroom to a short term rental guest. Depending on your home’s location and/or amenities, you might be able to land yourself enough reservations to cover 100% of your mortgage.
Some of the more creative ways of supplementing your mortgage uniquely depend on the setup of your property and the proximity to other locations. For example, I lived right near the beach; come summertime, I easily could have sat out on a lawn chair and charged beach goers a generous premium for driveway parking spots. While I’m at it, I could even sell them some ice cold waters/beverages. Now, I live close to a Nascar racetrack. On race weekends, people might pay for parking that’s close to their venue.
Another unique opportunity is to create a monthly fee for parking of large trucks, RVs, boats, and more if your property allows. Some homes could serve as a great space for an office, hair salon, repair garage, and more. For those with a large amount of land, you may be able to rent out portions of it to be farmed by others. Take a careful look at what is permitted by your local ordinances and begin to brainstorm all of your potential income.
Whether you already own a home or you’re considering buying a home, think about ways that you could subsidize that large monthly payment. There might be opportunities to rent out a detached structure, allow for parking on your land, or even rent farm space. If you’re comfortable with it, there may be some less convenient ways of making some money like renting out a room within your home, renting out your whole home over weekends or holidays, or cohabiting with a tenant. Your property may lend itself to some other unique uses as well.
