Are you willing to give up some space in your home to make some extra cash? It could help with paying the home loan off? Or help you save towards a renovation. Maybe, it's a way of getting a side-income to help pay off debt? Here's some ideas (some obvious, others not so) of how giving up your space, can lead to extra cash. Here's five moneysavingkiwi tips to get some extra income from your home:
1. Airbnb - Ok, let's start with the obvious, well known example. Depending on your circumstances, there's heaps of ways you can do this - from renting out a room, to a private space separate from the house. You get to vet the potential occupants and choose the right time. Just bear in mind with this option, you will have to let the inland revenue know as income can be taxable, although some of the expenses with providing such accommodation are tax deductable. Seek advice from the inland revenue.
Airbnb typically charges a low fee - around 3% for bookings or you can using a hosting team, which Airbnb can link you with who will charge around 20% of the total booking fee.
2. Fostering - Thought we'd throw in a potentially controversial one here. The truth is there's a shortage of foster parents available to meet demand in New Zealand. This option takes a lot of time to get approved (we are talking a few months) and has to be absolutely right as we are talking about children who are desperately in need of a stable environment and come with many social and emotional disorders. If you think you can provide a child with a healthy, nurturing home and cope with the potential stress of welcoming a foster child into your home, then this could be worth exploring. Fostering does come with a good allowance for the foster parents and the income nearly always isn't taxable (again seek advice on this). There's many different private fostering companies throughout New Zealand but Oranga Tamiriki would be a good place to start - check out https://www.orangatamariki.govt.nz/ for more information.
3. Rent a room out - A simple one but you could easily let friends at work know you are renting a room out or stick an advert in a local shop window. Not without its pitfalls, as if you just rent a room out, if you come into conflict with the person renting the room out then this can be difficult to resolve. Draw up a written rental agreement and credit check the person renting the room. You need to know they are good for the rent.
4. Host international students Ok, this one doesn't pay great at all but is still a way of providing a space and getting a little bit of income. The beauty of this one, is it can be an extremely rewarding experience and if you build up good rapport with the students, their families may even provide you with free accommodation if you visit their countries.
5. Rent out your driveway Make money from renting out your driveway for parking. Go to www.anyspace.co.nz to find out more. This could be a great alternative way of bringing in some extra income.
As always, do you due diligence on all the examples provided above. These are merely examples and any choices made are your own.
Please add any comments with experiences of any of the above or any ideas of how you would make money from your home.