We spent most of the past few months blogging about real estate trends, the effects of the pandemic, and new rules that are being administered in these very trying times. Today we're going to throw it back to the content that helps those of you out there who own property. That's right, no talk of the pandemic today! If you want more of that information, go back into our news archive and you'll see plenty. Today, we're focusing on positivity, and there is not much better than making money, so today we'll talk about how you can do that with your property.
Ways You Can Squeeze Cash Out of Your Home
You won't see us recommending the typical ways of improving home values, such as adding Hurricane Impact windows or automatic shutters that will close with a remote control. Instead, we'll focus on ways you probably have not idea about, such as building a studio apartment in your backyard that will produce extra rental income. While that may sound crazy, a San Francisco start-up can assist with the process. According to an article in TechCrunch, they are doing just that, even going as far as helping with permits and construction. If that's not feasible where you live, you can also convert portions of your home, such as your basement or attic, into a dwelling for someone who doesn't mind small quarters or perhaps as an AirBnb.
While you may give up some privacy, you can use this extra income to help offset taxes, maintenance, and utilities. if you don't mind the guests, or don't necessarily have the need for a lot of other capital but are open to having people rent occasionally, put the money towards the principle of your home.
Renting a Room
The first step into renting out portions of your home is to know your market. While that may sound like something bette posed for local real estate agents, it's as easy as cross referencing listings in your zip code on vacation rental websites like AirBnb and VRBO, as well as classified sites like Craigslist. If you aren't using the room, there is very little inconvenience. Adding small touches and investing in items such as a flat screen television with a cable package can really pique a potential renters interest level and be the defining attribute that would get them to rent from you, versus someone else. Further, a king size bed may attract different prospects as well.
Renting Your Basement or Space Above Your Garage
You can renovate your home to create spaces, which of course comes with a fee but will also increase the desirability of your home when you go to sell it. The average cost to remodel your basement is $71,000, and you'll instantly have space you can rent out that will produce cash flow. Further, Remodeling Magazine reported that 70% of this investment comes right back to you if you sell your home after two years.
Sure, the renovation will cost you a lot of cash, but depending on your potential rental income, this could prove to be very wise.
Build a Detached Unit
You may call it a guest house, a pod, or a shed, and they come in all shapes, sizes, and looks, but what you really have here is a detached unit that can serve as somewhere that can cash flow. If you have the yard space and aren't giving up too much land that would otherwise be used, this can be a solid way to create income while maintaining your privacy.
Rent Your Unused Land
Even easier to do is rent out any space in your land that would accommodate someone who has a small home. (Small being a very key word here!)
While this option always isn't the easiest one to execute, mostly due to zoning laws, you can rent out your space to the owner of an RV or camper.
Check your local laws on what you can and can't do, as you may need to attach this home to the foundation of your property, and that could cost $4,000 – $12,000.
Of course, all of these options, and many more, are part of the knowledge we bring to the table being Florida's #1 mentoring program for aspiring real estate investors.
While we are South Florida real estate professionals, make sure you check with your local laws and always get the best advice from a reputable real estate attorney to ensure you have all of your legalities in place. Once you have that ironed out, best of luck on your new cash flowing home!