How to Use Your Home to Build Passive Income Streams

written by

Jim Mucci

posted on

December 9, 2024

Want to make money from your home? You can! Let me show you some easy ways.

You can rent out empty rooms to travelers. Many people like to stay in real homes when they visit new places. You can also let people use a room in your home as their office.

Put solar panels on your roof to save money on power bills. You can even sell extra power you don't use.

Do you have extra space? Your driveway can earn you money when you're not using it. People will pay to park there. Your empty garage or basement can store other people's stuff for cash.

Build a small house in your backyard. You can rent it out every month for steady money.

Before you start, check what rules your town has. Also see if people in your area want these things.

Rent Out Your Spare Room

Want to make extra money from home? Your spare room could help! Many people would love to stay in your extra space.

You can rent to someone who needs a long-term home. Or you can host short stays for travelers on Airbnb. Look at what other rooms cost in your area first.

Make your room nice and comfy. Add good beds and furniture. This helps you ask for better prices.

Keep in mind you'll need to pay for power, water, and room fixes.

Be smart about who stays in your room. Check if they can pay on time. Ask others who know them. This keeps you safe and makes sure you get paid.

Talk to other people who rent out rooms. They can teach you what works best. You can learn the rules and find out what renters want.

List Your Space on Airbnb

Want to make money by sharing your home on Airbnb? It's easy and you get to choose how to run things. You pick when guests can stay, how much to charge, and who can book. Many hosts make more money this way than renting to long-term tenants.

Things that affect your income:

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High prices during busy times
How often people stay
Extra things you can offer guests

To make the most money:

Take great pictures of your home
Write clear house rules
Make it easy for guests to check in
Buy nice sheets and towels
Keep everything clean

Think about what makes your place special. Is it close to fun things? Does it look really nice? Tell guests about these good things in your listing. This helps you find the right guests who will pay more to stay at your place.

What Makes Money	How to Do It
Busy Season Prices	Use Airbnb's tools to set good prices
Full Bookings	Get 5-star reviews by being a great host
Extra Help	Give rides or tours for more money

Install Solar Panels

Solar panels can help you save money in many ways.

When you put them on your home, you pay less for power each month. The sun gives you free power!

You can also get money back from the government to help pay for the panels.

When your panels make more power than you need, you can sell it back to the power company. This means you get paid just for having solar panels on your home.

Your house will also be worth more money with solar panels.

Calculate Energy Cost Savings

Want to save money with solar power? Let's see if it's right for you.

Look at how much you pay for power now. Then check how much sun hits your roof each day. The amount of sun you get helps figure out how much money you can save.

Installing solar panels costs money at first. But you can get money back from the government to help pay for it. Many power companies also give you money back. Most people earn back what they spent in 5-10 years.

Your power company may buy extra power you make. This means more money in your pocket. Keep track of how much power you make each day and season.

You can get a loan to help pay for solar panels. Or you can rent them. This way you don't have to pay as much at the start.

Government Incentives and Rebates

Getting money back for solar panels is easier than you think! The government wants to help you save money when you put solar panels on your home. They give you back some of your money through tax breaks.

You can get back up to 30% of what you spend from the federal government. Your state might give you even more money back. Some power companies also give you cash back when you go solar.

The biggest help is the Federal Solar Tax Credit. It lets you pay less in taxes after you get solar panels.

Many states won't make you pay higher property taxes when solar panels make your house worth more. Some states also won't charge you sales tax when you buy your panels. This helps you save money right away.

Sell Excess Power Back

Your home's solar panels can make extra power when the sun is bright. Just like growing too many tomatoes in your garden, you can share this extra power. The power company will buy it from you! This is called net metering. It's like having a tiny power plant on your roof that makes you money while helping the Earth.

Power companies pay you for the extra power your panels make. They might give you 3 to 16 cents for each unit of power. How much you get depends on where you live and which power company you use.

If you want to make more money, you can put more panels on your roof. While solar panels cost money at first, their prices keep going down. They also work better than ever. This means you can earn back your money faster than before.

Create a Home Office Rental

Want to make money from your extra room? Turn it into an office that people can rent! Many folks who work from home need a quiet place to get things done.

Make the space nice and comfy. Add fast internet and good chairs. Put in bright lights so people can see well. But first, check if your town lets you rent out space in your home.

Look at what other office spaces cost near you. This helps you pick the right price. You can list your office on websites where people look for work spaces to rent.

Let people rent by the day, week, or month. This gives them choices. Include everything they need in one price – internet, power, and basic supplies. This makes it easy for both you and them.

The best part? Once you set it up, you won't have much work to do. You can earn money each month while helping others find a good place to work.

Start a Garden Business

Growing a garden can help you make money from your yard. You can earn $500-2,000 each month when plants are growing. First, you need to find out what plants people want to buy. Then you need to find people who'll buy from you often.

Here's how to make more money from your garden:

Grow special plants like fresh herbs and rare tomatoes. These sell for more money at markets and to local food spots.
Set up water systems and plant houses to grow more food for longer times.
Make friends with local cooks and food shops who'll buy from you again and again.
Do more than just grow food. You can teach others how to garden and sell things like dried herbs.

Many garden shops start making money in their first year. Once you have good helpers and a plan that works, the garden can almost run itself.

Rent Your Parking Space

Do you have an empty parking spot? You can make money by letting others use it when you're not there.

This works best if your spot is in a busy place like:

Downtown
Near a stadium
Close to trains or buses

Many people need parking and will pay to use your spot. You can rent it by the hour, day, or month.

Look at what other parking lots charge nearby to pick your price.

Apps like SpotHero and JustPark make it easy to rent your spot.

These apps help you:

Show your spot to drivers
Get paid quickly
Let people book times to park

Find Your Target Market

Parking spots in busy cities are like gold. People need them and will pay good money to use yours.

Here's who might want to rent your parking spot:

Office workers who need a spot near work each day. They want a safe place to park and will pay well for it.

People who live in nearby homes but have no parking space. They need a safe spot for their car at night.

Shop owners who need parking for their workers and shoppers during the day.

People going to shows, games, or events nearby. They'll pay more when these events happen.

Look at what other parking spots cost in your area.

Think about how safe and easy to reach your spot is.

Also think about what time of year more people need parking.

This will help you set the right price that works for both you and the people who want to park there.

Set Competitive Rates

Parking spots are like houses – their worth depends on where they are. To find a fair price, look at what other parking spots near you cost.

Prices change based on where your spot is:

Where	Monthly Cost	Why
City Center	$200-400	Lots of cars, few spots
City Homes	$150-250	Many work cars
Outside City	$100-175	Fewer other spots
Near Shows	$75-150	Busy on show days

Your spot might be worth more at certain times. In winter, people pay more for covered spots to avoid snow. When there are big games or shows nearby, you can ask for more money. Think about what makes your spot special. Is it safe? Can people use it any time? Is it covered? These things help you pick the right price.

List on Parking Apps

Want to make money from your empty parking spot? You can! Many people need a place to park their car.

If you have a driveway or garage spot you don't use, you can rent it out. People will pay you to park there.

Here's how to get started:

Look at what other parking spots cost near you. Make your price a bit lower.
Take good pictures of your spot. Show how cars can get in and out.
Tell people when they can use your spot.
Answer messages fast when people ask about your spot.

Before you start, make sure it's okay to rent your spot. Some cities and neighborhoods have rules about this.

It's a simple way to earn money from space you're not using. Many apps can help you find people who need parking.

Build an Accessory Dwelling Unit

Want to make more money from your home? Think about building a small guest house in your backyard. This is called an ADU. It's like adding a tiny home that you can rent out each month. Plus, it makes your home worth more money.

These small homes cost about $100,000 to $200,000 to build. But the money you make from rent helps pay it back.

How much rent you can get:

Tiny home (one room): $1,200-$1,500 each month
Small home (one bedroom): $1,600-$2,000 each month
Bigger home (two bedrooms): $2,100-$2,800 each month

First, you need to make sure you can build one. Ask your city if it's OK. You'll need special papers called permits. If you live in a community with rules, ask them too.

Need help paying for it? You can get money from your bank. Many cities want people to build ADUs because we need more homes. This makes it a good time to start building.

Generate Storage Income

Want to make money from your empty spaces? You can rent them out for storage. Many people need a safe place to keep their stuff.

You can let others store items in your:

Garage
Basement
Attic
Yard (if you can lock it up)

To make the most money from storage:

Look at what other storage places charge. Set your price a bit lower.
Put up cameras and good locks to keep things safe.
Write down clear rules about what people can store and when they can get their stuff.
Put your space on websites like Neighbor.com to find renters.

Make sure you have good insurance first. Check if your town lets you rent space for storage.

This is an easy way to earn extra cash from space you don't use. Many people will pay you to keep their things safe and dry.

Host Events at Home

Want to make money from your home? You can let people use it for special events. Think of hosting small dinner groups or big parties in your yard.

You can list your home on websites like Peerspace or Giggster. Many people look for cool places to have their events.

Here's what you can charge: