Using Property to Increase Your Income

Increase your income from property

Increase your income from property

One of the best ways to get out of debt and improve your overall financial position is to take stock of your assets. Most people have a number of potentially money making assets they don’t give much thought to. By taking stock of your assets you may realize there are many ways you can make money from what you already own and put those assets to work.

Firstly, lets take a look at one of the larger assets you may own (or be paying off) – your home. Property can be very profitable if you take the time to consider all of the ways it can be leveraged.

Rent a room
The most obvious way is finding someone who is willing to rent a room from you. In many countries the income from rent can be tax free to a certain dollar figure as well, and this extra cash can be used to help you cover living expenses or to simply help you pay off your mortgage. Be sure to find a lodger who matches your life style and set out some clear household rules to avoid any problems. For older people who may be often living in a large house by themselves, this is a great money saving idea and also gives them some company in their retirement. For younger people paying off their first home, it helps them pay it off far more quickly. But anyone can use it to help reduce their debt, a few thousand dollars a year makes a large difference!

Rent a space
You can also rent out your garage or a parking space if you have one. If your property is in the middle of the city, you can lease your parking spots or even your driveway to people who drive into their jobs. It will be cheaper for them than paying for commercial parking and you can get hundreds or thousands of dollars per year for doing nothing. You can let out the space in your garage also – if you have plenty of storage space there may be people interested in it and it’s free money for you. If there is an event on nearby you can even turn your lawn into a makeshift car park, charging a fee for the day’s parking.

Rent a house
If you are struggling to pay your mortgage you could also rent out your entire house and move in with relatives or move to somewhere cheaper! It’s not unheard of for people to rent out their large expensive house and move into a unit. They pocket hundreds of dollars each week from rent, and if they move in with relatives it can be a substantial saving – enough to cover your mortgage if you are trying to get your finances back together. Renting the house is also a great option if the property market is flat and selling it would result in a loss. Simply rent it out and relocate to somewhere cheaper.

Swap a room for services
You can also obtain services in lieu of rent. Some people don’t like spending money on rent but have valuable services they can trade in place of rent. For example you could give a room to a tradesman in return for a set number of hours each week helping you repair or update the property. There are many services you could do it for – consider a live in cleaner. Many people will happily clean the house for an hour each day for a free room. If you already pay $100 a week on cleaning services, you could save the money and instead have a flat mate.

Swap a room for childcare
Another service that many people consider is that of an au pair. Childcare is very expensive and can cost many thousands of dollars per year. As an alternative, you could offer free rent plus a small salary for a child carer to live in your home and look after your children during work hours. You save a lot of money by avoiding childcare costs and the au pair is glad to have free rent as a part of their salary. This is also popular with young people who are traveling abroad because they have a place to stay, can work during the day looking after the children, then can enjoy their nights off when you get home from work.

Consider holiday rentals
If your home is in a location popular for tourists you might be able to rent it out as a holiday home during the peak season. Many people live in their homes during half of the year then rent them out for a large amount to tourists during the holiday season. If you are on the beach, or near well known snowfields you could make as much as $2000 a week during peak season. If you have a large home you could even offer a bed and breakfast service during the peak months. If you own a 2nd home for your own holidays, you could rent that out as well when you are not there.

Examine smaller assets
Now onto smaller assets. Most households actually have thousands of dollars worth of unused assets lying around their house. For many households these valuable objects are no more than clutter! You should take a look at exactly what you have in your house and decide how much of it you actually use on a regular basis and how much can be turned into much needed cash.

You could sell your items on Ebay, or use the traditional method of a garage sale. If you have heirlooms, art or antiques, often it’s advisable to get them properly valued before making any decisions. Sell off the things you haven’t used in a year, you will be better off without the clutter in your house and with the money in your pocket.

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