Aging in Place: Use Your House for Extra Income

As home values continue to rise, so do property taxes. If you’re a homeowner on a fixed or low income, making financial adjustments to keep up with the real estate market and the costs it will take to stay in your home can be a real burden. If you’re looking to alleviate some of the financial burden of home ownership so you can continue to stay in your home, there are some opportunities you can consider that actually leverage your home for extra income.

Across North America, seniors are opening up extra space in their homes to make additional income in their retirement years. Let’s say your home has 3 bedrooms and 2 bathrooms but you are the only person living in the house currently. There are tons of people out there who would happily rent a room in your house from you. If you rent out a room, you would then share the common spaces of the house, such as the living room and kitchen. You’ll need to make sure you’re comfortable with that. 

Some of you might be lucky enough to have a space available that can be totally separate from your main living area. A walkout basement would be a great example of a separate space. Your basement may be able to be used as an entire apartment as-is or with just a little remodeling. If you want to make it a separate space so your renter doesn’t have to share common areas with you, you’ll need to make sure you have a legal bedroom, at least 1 bathroom, and a small kitchen area. If the costs don't outweigh the benefits, consider taking out a Home Equity Line of Credit to make those improvements. You can definitely take in more rent every month if you’re renting a separate space rather than just renting a room and offering shared common spaces. And renting a separate space might make you feel more comfortable.

You can rent to anyone. Consider the general population for a longer-term rental. Or you could consider short- or medium-term rentals through Airbnb or Furnished Finder. In addition to the general population, consider tapping into the student population. International students pursuing a college degree or foreign exchange students temporarily here to study abroad at a local high school could also be a fit, depending on where you live in relation to the local schools.

Note: If you go the route of doing short-term or medium-term rentals, you will need to provide a furnished space.

In addition to helping you make extra income to make ends meet, this might also be a great motivator to declutter your extra bedroom! You’ll need to clear it out to make room for the stuff that is important to someone else. Having someone move into your home can also help combat loneliness and isolation. This strategy might just be a win, win, win for you!

Disclaimer: Sharing space with other people needs to be handled legally and with correct checks put in place, such as written lease agreements, in order to protect your home and safety. Fair advertising laws should also be considered. If you would like to know more about this type of income opportunity and how best to handle it, I’d love to give you some great tips.