Renting Out Unused Space in Home

Want to make money renting that spare room in your house? You’re not alone. 

Since the cost of living continues to rise, people are exploring different ways to supplement their income, and renting unused space in a home could be a viable option for many.

No matter if this space is a bedroom, garage, attic, or any other kind of free space, check out this guide to learn more about renting unused space in home to generate extra money each month.

Overview of Renting Unused Space in Home: A Primer

Renting unused space involves leasing out areas in your house to a third party for various purposes.

It’s not just about getting a new roommate to fill that spare bedroom and pitch in to cover the bills. You can rent out your extra space to someone who needs storage space, an artist looking for a studio, or even a remote worker wanting a cheaper office space.

Doing this allows you to supplement your income without necessarily investing money upfront since you already have the extra space.

You don’t need to be a property owner to pursue this side hustle. You can sign a long-term lease agreement for a property and then list it for short-term rent to capitalize on the difference between long-term and short-term rental rates. This is known as rental arbitrage. 

But, there are legal and regulatory considerations to keep in mind, as you may need a permit to legally rent your unused space. Check local, state, and zoning laws, along with applicable homeowners’ association rules. 

How Much Can Renting Unused Space in a Home Earn You?

The amount of money you can make renting unused space in your house can vary based on:

• Location of your property
• Type of space you’re renting (such as parking space, storage space, pool house, spare rooms, etc.)
• Market demand in your area
• Condition and amenities
• Short-term vs. long-term rental
• Competitor prices

You can also check the Airbnb rates in your area to get a better idea of how much you can earn. For instance, the average cost of a bedroom in the US is around $67 a night. If you’re going to rent this type of room, you can model your pricing based on these averages.

We recommend consulting with a property manager, real estate agent, or landlord association in your area for more information on how to set a reasonable rental price. 

How Much Does It Cost to Start a Side Hustle Renting Unused Space in a Home?

The amount of money you need to invest varies based on several factors, including space preparation, setting up a rental business (if applicable), and legal/regulatory costs. 

Some costs are one-time expenses (such as the paperwork), while others are ongoing, including taxes, liability insurance, repairs, and maintenance. But you can set your own price once completed to cover your costs. 

Where Can You Find Places to Rent Unused Space in a Home?

There are two main ways to approach it: independently or with the help of the gig economy.

Where to Independently Find Places to Rent Unused Space in a Home

You can also list your space on online marketplaces like Craigslist and Facebook Marketplace. Even if you’re renting out kitchen space, these platforms make it easy to reach people in your area looking for extra storage space or rooms.

You can also use neighborhood-based social networks such as Nextdoor, where you can post about your rental space and garner local reach. 

If your property is close to a local university or college, you can inquire about posting your rental on campus bulletin boards. This is especially useful if you’re renting out a spare room. 

Gig Economy Companies That Help With Renting Unused Space in a Home

Renting extra rooms is a more common way to make more money, and you have several platforms that can help you promote your space:

• Neighbor
• StoreAtMyHouse
• RVShare
• Peerspace
• Swimply
• ShareMySpace
• Giggster

These platforms can help you land a paying customer a lot faster than independent methods and help you promote any type of space you have, from self-storage to parking spaces. 

Why You Should Consider Renting Unused Space in a Home As a Side Hustle?

Here are some compelling reasons to consider renting your unused space:

• Steady Source of Income: Whether you’re renting out a spare room or an underutilized backyard, leasing out the empty space in your home can be a solid source of income in these trying times. It also helps you save money on utilities. 
• Easy to start: It’s an easy side job that can be done from home using resources you already have. Even if you need some renovations, these unused spaces can quickly help you get more money into your bank account. 
• Low Initial Investment: Compared to other side hustles, renting these spaces requires a lower initial investment. It’s one of the most cost-effective means of generating extra income, which is exactly the reason behind its popularity. 

Problems With Renting Unused Space in a Home

Though renting unused space has its perks, it also comes with a few problems, including:

• Legal and Regulatory Compliance: Depending on where you are, there might be legal and regulatory considerations to account for. Failure to do so may result in legal disputes or fines. 
• Tenant Screening: You’ll need to do some vetting upfront to avoid a problematic tenant who doesn’t pay rent or time, causes property damage, or violates rental agreements. 
• Maintenance and Upkeep: As a lessee, you’ll be responsible for the maintenance and upkeep of the rented space. If you don’t uphold this responsibility, you’ll most likely drive tenants away and garner negative reviews. 

Frequently Asked Questions