Make Your Home a Money-Maker
Posted by Gail | Filed under Good ideas
Anyone see the ad I did for Campbell’s? When I arrived on location to shoot the ad, I found myself wondering into this lovely woman’s lovely home. Yup. She’d registered her property for use as a location for things like ads, tv shows and movies. Way to make your house earn its keep, eh?
Rental rates can vary from $500 to $5,000 a day, depending on the type of project. Films pay more than TV productions. Films also take a whole lot longer to shoot, and you may have to move out of your house for up to three months if you go this route. Even a one-day ad or TV crew will feel like a swarm has descended on you, so if you have an obsession with privacy, this won’t be for you. Productions usually carry good insurance – but don’t assume anything, check — so you don’t have to worry bout things being broken or damaged.
With the economy in turmoil and people out of work, renting out space in your home or taking in a room-mate could make the difference between keeping ahead of the creditors or sinking like a stone. While the idea of there being another body fighting for the TV remote can be pretty horrifying, cutting your housing costs by a third, or even by half, (how much extra space do you have?) means more money to eat and stay ahead of the bill collectors. And if you’re swimming in debt, it could the the light at the end of your tunnel.
While a good roomie can turn into a friend who shares the chores and watches your place while you’re away, a bad roomie can be a nightmare, so choose carefully.
Want to keep your living space completely separate from theirs? Do you have space that you could turn into an apartment? Think attic, basement or detached garage. Remember that every local government has it’s own rules about renting, so it’ll take more than a coat of paint and some appliances to create an apartment suitable to rent. Before you dump money into a big project, work out how many months of rent money it’ll take to recoup the cost.
A variation on the roomie idea is to host an international student in your home. If you have kids who have flown the coop, put their bedrooms (or your spare room) to work. Homestays are a great way to make some extra money, learn about another culture, and make new friends. Rates run from about $500 – $800 a month per person, but remember you have to provide food as part of that, so it’s not all found money. Contact Canada Homestay International which has over 4,000 homeowners working with them across the country.
Even your driveway or parking spots can bring in some extra money. If you live in a major urban area, parking is probably at a premium. Away from home all day? Rent out your driveway or parking spot to someone who works in the area and doesn’t want to spend heaps of money to take their car to work. Run an ad on craigslist.org or kijiji.ca. In the U.K. try yoourparkingspace.co.uk.
Live in an apartment that comes with a parking spot you don’t need? Rent it to someone who has stuff, like a boat or a motorcycle, to store over the winter. Car-sharing companies like Zipcar in North America and Streetcar in the U.K. are also on the lookout for places to park vehicles.
Do you have a beautiful garden you could rent out for weddings and other special events? How about a garden that allows you to start a vegi co-op? Do you have a pool you could use to teach little ones to swim?
If you live in a rural area and have a spare room or two, you might want to consider turning your home into a B&B. While you’ll have to get up early to make breakfast, and your laundry will increase dramatically, you can choose when you want to be open and how many guests you entertain at once. Check to see if you need planning permission and tell your mortgage lender since a change in property use can an impact on other areas too. This can be particularly lucrative if you live near an area where a big festival or regular concerts happen. It won’t be just ticket-holders who will be looking for a comfy bed. The organizers, exhibitors and media may need somewhere to bed down too, so register your availability with local organizers so they can add you to their database.
The roof over your head is likely the biggest asset you have. It may also be the most expensive. Put some energy into figuring out ways to cash in on your home while still living in it and you could find you’ve been sitting on a pile of dough without even realizing it.
April 30, 2009 at 8:54 am
Wow, what a timely post when everyone is looking to increase their income. Of course, if you are thinking about getting a roommate, make sure you do your research so you know who you’re getting!
I think the interesting thing about this post is that many people have assets but don’t know how to utilize them properly. It sounds like with some ingenuity you could turn a money-drain into a money making machine!
April 30, 2009 at 10:17 am
wow – I wish I could charge some rent to the raccoons that are living in my shed
. Great Post as always Gail!!! Makes you really think about how to make your assets work for you.
April 30, 2009 at 11:41 am
I know people that rent out their basements, garages and spare rooms as “storage units” for other people’s stuff! As a bonus, the tenants are quiet. (Just make sure you trust the person not to put dangerous or pest-attracting things in the space, and be clear about the liabilities you are willing to take on regarding loss or damage to their belongings. But if you keep it friendly, it’s putting those unused spaces to work)!
I also know people that rent out a stall in their garage, or a chunk of their flat driveway as RV/boat storage! (In these parts, suburbia, boats and RV trailers aren’t allowed on the street, and all the steep driveways around here make off-road parking sometimes difficult to find).
April 30, 2009 at 12:18 pm
Throughout college I had roommates and it was a great way to save money. I also have a friend who bought a house and rents out rooms so she can own a house while single. I’ve thought about it and would do so if we were needing the money. Thanks to Gail’s information and being frugal we are debt free except for a mortage so we will hold onto this idea if we need to use it!
April 30, 2009 at 12:21 pm
Love the storage space idea, Pol*!
Interesting perspective on making your assets work for you. I have to say, though, I wouldn’t be comfortable giving swimming lessons on my property unless I was certified and had proper insurance.
April 30, 2009 at 12:43 pm
And don’t forget about four legged paying guests. If you love dogs and cats and guinea pigs and hamsters and etc. you can make a tidy income by offering boarding or even day care.
Of course you must have the room, the authorization (landlord, neighbours, husband, insurance company, possibly city bylaw) and safety considerations (fenced yard, separate secure area for cats and dogs). It is especially helpful if your own dog/cat does not consider the mere sight of another dog/cat as the supreme insult and cause for an international declaration of war.
Phone around to local boarding kennels and catteries to find out what they charge on a daily basis and charge slightly less. Up here it is $16 a day for a dog and $12 for a cat. Start out by telling friends and neighbours and family. You probably will never have to advertise.
Any one who flies out of the Yukon has to do so from Whitehorse so all of our country friends have come to look upon our house as the park and fly and loading and unloading zone for their cars and pets. We have never charged anyone cash – just use a barter system and they mostly always bring us a gift. We have 3 Hula dolls from Hawaii. Yeah.
Just some points for caution. Get the money up front especially when dealing with friends and family. If the stay is for 5 days and they only actually stay for 4 you can always refund. Saves a lot of nasty looks and snide remarks across the diner table.
Find out the animals personality history (does your dog bite?) and medical history and get authorization for their veterinarian and discuss what the owner would want you to do if the animal becomes ill or injured. You may actually have to get more home insurance depending on your company.
And for God’s sake don’t lose a dog unless you have a bailout fund or misplace a cat behind the hot water tank in the crawl space. People can be so difficult. And ungrateful.
April 30, 2009 at 1:08 pm
Hi Gail,
This is a great post! Thanks. For 13years, I rented out rooms to international students both for the money but also to expose my children to different cultures. We have very fond memories of students who have lived with us from China, Sri Lanka, Tanzania, Nigeria, Indonesia, Japan, Korea, Libya and Zimbabwe.
Before you begin the room renting process, you really need to know what you want. I was looking for upper year or graduate students who were mature. We shared the common spaces but I didn’t cook for them. They cooked for themselves and occasionally for me which I really appreciated.
When you begin interviewing people for the space you want to rent, it is important to have found out what the going rate for renting is so that you can be competitive but mostly so you don’t undersell your space. If you include cable and internet, telephone for local calls, washer and dryer this needs to be included in your overall rental cost.
In order to have a successful renting experience, it is critical to tell potential renters what your expectations are, ie no smoking, no phone calls (on the common phone) after 11:00 p.m., no laundry after 11:00 p.m. , whether or not you allow visitors? Once you have rented your room, it is important to go through the house with the person and explain how things work. Also, cultures can be very different from your own so try to be observant the first little while of renting as tasks may have been done differently in their home. For instance, years ago, I invited an international student to stay with me for a week while he looked for accommodation and I would come home from work and ask if he had had any dinner and he always said ‘yes’. In his culture, it was customary to have the host prepare food and serve it without asking if he was hungry so he went for a week with hardly any food! He felt it was rude to tell me he hadn’t eaten. You may be thinking that you would automatically have done that but because I have always had at least two jobs, I didn’t cook regularly and my children were older so they cooked for themselves. The student and I are still good friends and that is one of the funny things we remember – my almost starving him!
One other recommendation is that when you have people viewing a room to rent, don’t make a decision right on the spot. Do all your interviewing, and let people know you will get back to them. Carefully consider who might best work out living with you before calling them back. If you are renting a room, you might not have references to check especially if they are international students but it is important to let them know what you expect from them so they too can decide for themselves if living with you would be a good experience for them as well. Once the ground rules are laid and a tenant accepts, there is always an opportunity to relax the rules but it is very hard to create new rules as you go along.
Finally, I have rented a small house in my home town and from that experience, I know it is essential to get at least two references and definitely follow up with them.
Forgive me for taking up so much space…I really enjoyed knowing the people I rented to and wanted to share information I have gathered over the years.
April 30, 2009 at 1:18 pm
@Maureen
Anyone else think it’s not being ungrateful if you’re upset that your catsitter bbq’d your kitty on the water heater?
April 30, 2009 at 2:26 pm
Hi Geoff
BBQ? Which sauce? Am a vegetarian but would make an exception in this case.
Kidding. Maybe. Cat not BBQ-ed. Just toasted. Actually toasty warm. Must stick to Gail budget for hydro so hot water tank kept at just above freezing.
Their upset??!!!! Full disclosure. Should have warned us that Cat loves to dig and chew hole in drywall in secret behind clothes dryer, squeeze through and hide – for days. Must have taken food and entertainment supplies with her. Hysterically looked everywhere. Knew she hadn’t gotten outside so even checked fridge, ripped apart sealed boxes and strip searched dog. Suspect there is a Great Escape style tunnel in crawl space but have been unable to find the entrance. Have now set up Klieg lights, guard towers, and barbed wire around 6 foot tall fenced pen to keep Houdini Husky in. He actually climbs the chain link and we have to shovel out the pen because he packs down the snow to create a ramp.
Both little bas****s are coming for summer camp. Yeah. Must learn to pronounce hardest word in English language. nnnnnooooo.
April 30, 2009 at 3:53 pm
We have a room mate and might get another one. The roomate has allowed us to pay out our debts quicker and saved us a bit when I got laid off in Jan by having that extra cash ’till EI kicked in. Now I rent the spare bedroom upstairs to my business (I’m self employed) as it has to pay it’s way too.
It seems odd to people when I tell them that, but the business can afford it and it means my draw on the company can be that much less.
April 30, 2009 at 4:37 pm
Cats can be sneaky little things when they want to be – I love them though!
I was once renting the upstairs of a house (really “involved” landlady but that is another story). I got home from class and could not find my indoor cat anywhere. As my landlady was often in my apartment it was possible that the cat had gotten out. I searched everywhere inside and then outside in the yard, getting more frantic as I searched.
After a couple of hours I went back inside to go to the washroom and while in there I heard a tiny meow. The cat was under the bathtub. She had crawled in a tiny hole under a drawer in the kitchen and traversed the entire width of the house in the space between my floor and the downstairs ceiling and apparently could not find her way back.
It took a few minutes of tapping on the floor every few feet – leading her back to the kitchen and I soon had the filthiest cat you have ever seen shivering in my arms.
She didn’t even fuss too much about the necessary bath.
Not a budget story but it might have made you laugh
April 30, 2009 at 7:49 pm
My little nephew was taking swimming lesson during the winter at a private home with an indoor pool and lifeguards. Must have been a big home to have an indoor pool.
April 30, 2009 at 7:57 pm
Loved the cat stories! You made me smile even though it is year end at work here and scrambling to get everything caught up!
April 30, 2009 at 10:30 pm
When I was house shopping 3 years ago, I only looked at homes with a basement unit. I knew that the rent would help pay for the mortgage. The rent the current tenant pays covers about 50% of the mortgage. The inconveniences of having a tenant (he loves using the clothes dryer ALL the time!) are worth it. I also claim this income which allows me to deduct about 50% of my mortgage interest, utilities, home improvements (just replaced my furnace and AC unit and will be replacing all doors and windows soon). It’s a win win situation. I also just bought an investment property with 2 parking spaces and two storage lockers. I’ve already rented the 2nd parking spot and will hopefully rent out both storage units soon.
@ Maureen: really enjoy the animal stories!
May 1, 2009 at 3:29 pm
Hi Michelle
Poor Kitty! Lucky Kitty. Well that old saying “curiosity killed the cat” definitely comes from someone’s experiences. We had a cat who has gone for more than one spin in the dryer (began to suspect that she thought it was a Ferris Wheel for Felines) and she also went to sleep in the microwave after I left the door open. At least I think I left it open but then again she actually pulled the door almost shut on herself. Had another troublemaker who got packed into a moving box and only popped out startling all of us when my husband began to tape the box shut. Poor Hubster now has a pathological fear of cardboard.
And then of course there was the eighteen year old, three legged, toothless one who crawled up into the chimney, out the top, strolled down the roof and ended up sitting in my flower box on the outside kitchen window ledge staring in at me as I was doing the dishes. Part of my brain probably knew that this indoor cat should not be outdoors looking in but I finished all the dishes before it clicked that this was a cat, my cat, but now a black cat and not a red one and that she shouldn’t be nesting on my parsley and basil. Makes us sound very irresponsible and unobservant but cats are sneaky. And besides, our neighbour went on a 5 day hike across the Chilcoot trail and wondered why his backpack felt so heavy that first day. His cat made the rest of the trip on his own four wheeled paws and apparently really enjoyed camp food especially the hot dogs and moths.
And lucky you. Can you imagine if you had had to rip out the walls or floors or plumbing? Now I wonder where we would budget for THAT? Emergency? House Repair and Maintenance? Pet Care? Medical?(to pay for the psychiatrist we would need if we couldn’t get the cat out) And I wonder if our house insurance would pay? Well, it is a kind of home invasion along with some necessary vandalism. Possibly a renovation grant or tax refund?
May 5, 2009 at 8:42 pm
Hi All,
I love all the budget boosting tips. I’ve been working with Gail’s recommended cash system for over a year now and I love it. When I started, I worried about budgeting for extra Christmas gift money. I decided to start a jar when my CPP/EI premiums are paid in the late fall…my extra pay goes to the extra holiday expenses. Plus, without using credit cards, I find I’ll never get enough frequent flyer points for a trip, so I convert any points I have to grocery gift certificates…I exchange the $ in my grocery jar for the certificates and add the $ to the holiday fund…and I do the same with any other “points” I collect…I try to figure out how I can convert them for a budget boost!
June 19, 2009 at 7:33 pm
I have two spare rooms available if needed.