Buying your own home can be a really lucrative investment if you have the right strategy in place. There are a few simple (and budget-friendly) ways you can make money on your home, even if you still have a mortgage to pay off. Whether you’re planning on living in your home long term or hoping to fix and flip it, use the following tips to help turn your big investment into money in your pocket.
Make some upgrades
Whether or not you plan to lease your home, making some simple upgrades to the interior and exterior of your home is a great way to increase its value. Remember, there’s no need to go for a complete remodel—unless the property is in exceptionally rough shape. Here are a few upgrades to consider if you want to rent or sell your home for more in the future.
One way to make your property more appealing to buyers and renters (and you) is by installing a revamped outdoor space. There are a few ways you can go about this.
Full makeover: If you’re not working with much to begin with, the sky’s the limit when it comes to restyling your backyard. Depending on the kind of yard, you could opt for a greener space or go with a low-maintenance xeriscaped style that’s built for entertaining.
Curb appeal: Did you know homes with good curb appeal sell and rent more quickly than those that don’t? A paint job or some yard work in the front of your house could do wonders for a resale.
Lease it out
If you’re not ready to turn your home over quite yet, leasing it out could be a great option for you to make some money on your investment. If your rental space is substantial enough, you could even pay off your mortgage in tenant rent. There are essentially two ways you can rent out your home—you could partially rent it, say a spare bedroom or granny flat. Or, you could rent the entire thing if you have somewhere else to live in the meantime.
But being a landlord isn’t as simple as posting a “For Rent” sign on your front lawn and calling it a day. There are a few best practices and legal regulations you should consider before deciding to rent out your property.
Tenant application: Implementing a proper application process is one way you can make sure that you find the right tenant to lease your space. There are certain legal restrictions you need to consider before you create a tenant application, so be sure to check your state’s tenant law.
Tenant approval: Once you’ve narrowed down your tenant pool, you shouldn’t just blindly choose someone to move in. A choice like this could end up costing you in the long run. Running a tenant background check is a simple solution to help you learn more about a prospective tenant before approving them to move in. A background check can tell you if an individual has a criminal history and if they have any red flags on their credit score.
Maintenance: Your job isn’t over once your new tenants move in. From maintaining the yard work to coordinating pest control appointments and fix-its, there are plenty of things to keep landlord life busy. But if you want to keep good tenants in the space, you should do everything you can to keep your rental looking top-notch.
If you’re a creative and organized person looking to make money on your home, here’s another idea. Rent your home as an event space. Of course, you’ll have to have the aesthetics of an event venue—a great backyard, a charming barn, etc. There are a few legalities and other things to consider, so you may want to list it through a well-known app, but once you get into the swing of things, you’ll find that there are plenty of opportunities for you to cash-in. Host photo shoots, weddings, or even lease your home to Hollywood producers as a filming location.
If you want to make more out of your home investment, use these tips to help you do so!