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How to Turn Your Home Into a Moneymaker

For approximately 62% of the American population, their homes are one of their most important assets but homeownership can quickly become a liability due to maintenance, repairs, and mortgage payments. With the latter becoming a huge burden for homeowners, many are now thinking of turning their properties into moneymakers. If you are thinking of doing the same thing, there are a number of business ideas that you can explore. This includes adding a rental suite, renting out accommodation or storage space, running a bed and breakfast, or creating a venue place out of your property’s extra space.

How to Turn Your Home Into a Moneymaker

Important Considerations for Homeowners

It is exciting to think of your home as a potential moneymaker but before you open it to others, be sure to check your insurance policy first. Experts note that you will likely need a specialized insurance policy because your homeowner’s insurance won’t cover losses that can stem from renting out your property.Whatever plans you may have for your home, it is ideal that you talk to your insurer immediately.

If renovations are needed to prepare your home for your new venture, it is important that you do not overdo it. Renovations can be extremely expensive and can even take a toll on your health. It is advisable that you take everything into consideration before you start renovating.

Renting Out a Part of Your Home

If you live in place with a high demand for spaces for rent, you can rent out a part of your home. The average rent across the country is about $1,232 and if you have the space for a rental suite, you can easily rake in this amount month after month. You can also rent out storage space or offer room accommodations for transients.

However, if you need cash right away, it is a good idea to apply for a reverse mortgage. A home loan for seniors allows homeowners 62 and older to borrow against their home equity. No monthly payments are needed because the loan can be paid once the borrower sells the home or when he or she passes away. If you are eligible for a reverse mortgage and would like to avail of this opportunity, studying your options is recommended.

Running a Bed and Breakfast

Running a bed and breakfast is not for everyone but if your home has several rooms that you do not currently use, you can maximize the space by turning it into a temporary home for visitors. Renting out rooms weekly or nightly can be quite lucrative. If you have four rooms, for example, and charge $85 a night per room, you’d easily make $340 a night if all rooms are filled.

If you happen to have a large space in your backyard or happen to live in a farm where there are wide open spaces, you can advertise the space as a venue for weddings and parties. This can make you a lot of money in the long run, according to experts especially for places that are spacious and those that have a nice view.

Whatever type of business you choose, it is imperative that you do your research by studying your market and by determining the things you will need. Experts note that you also need to take a look at possible effects on your taxes and liabilities. However, the most important research that you will need to do is to find out whether the business is lucrative or not.

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