Is your house a money-making asset? You might not think so right now, but it could be. It turns out that, at least in today’s economy, homes don’t have to sit idly and do nothing for your bank balance. You can put them to work and potentially earn a fortune. Here’s what to do.
Airbnb, founded in 2007, is now the leading room-sharing platform in the world, allowing people to free up unused space in their homes and put it to good work. There are now more than two million homes on the platform, spanning almost every country in the world. For the last several years, the platform saw high double-digit growth, way beyond what most analysts expected.
There’s a reason the platform is so popular: it works for both hosts and guests. Guests get to stay in accommodation at a fraction of the price of a hotel, and hosts can make money from unused bedroom – often a substantial amount.
You don’t have to rent a room every night of the year to see a substantial return. Even a partially used room, say 45 nights per year, can generate additional income of around $3,000. There are fees to consider, between 6 and 12 per cent of overall takings, but given that your room would have remained unused, this is hardly a deal breaker.
If you choose to use Airbnb, don’t forget to target your intended audience. Students, married couples, young professionals and tourists all have different expectations.
Use It as a Location
Today there’s a big market for “locations.” Films, TV programmes, magazines and other media outlets want to use people’s homes to as backdrops, and they’re willing to pay big money to do so.
If you own a glamorous home, then you can make a lot of money, especially if you can capitalise on unusual features. But that’s not the only market for “locations.” Even quite average homes have value. Just think of Privet Drive in Harry Potter.
Homeowners make the majority of their money through small-scale productions, such as photo shoots for magazines. A well thought out interior space uses neutral colours and doesn’t offer anything too distracting.
Grow Your Rental Income with Units
Airbnb is a great tool that allows regular people to rent out rooms in their homes for a nightly fee. But savvy property owners know that they can make more money by renting out units instead. You might need to sell your house to get the capital, but once you have the money in the bank, you can quickly lever up and make a substantial income.
Start by renting out a single unit in an area to see what kind of return you can get. If you find that you’re doing well using Airbnb, buy another apartment nearby. Some of the most successful property owners begin by renting out a single self-catering unit in a block, advertising it as a weekend getaway, and then scale from there. For many, what starts as a hobby turns into a full-time money-earning gig.