Renting in Reverse: Earning From Your Rental Experience
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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When you’re renting a living space instead of owning, you don’t have the opportunity to build equity in your property, which can feel like a waste of money. But you may be able to use your rental space creatively to earn income in other ways.
Though you have to abide by the terms of your lease and space, there are dozens of opportunities where you can make money as a renter.
Experts explain ways you can turn your rental experience into a money-making venture.
Sublet Unused Spaces
One great way to turn your rental into a money-making venture is to sublet your unused spaces, according to Shannon Feick, the co-owner and co-founder of ASAP Properties in Cincinnati.
“Spaces like a spare room, garage, or even parking space. This is especially great in expensive or high-demand areas,” he said.
Parking spaces can be an easy opportunity, according to Jonathan Faccone, managing member and the founder of Halo Homebuyers, especially if you can’t rent out your indoor space.
“This is a simple and easy way to generate additional income without having to invest much time or effort. I have found it a lucrative opportunity for renters, especially in areas with high demand for parking spots,” Falcone said.
Sublet Through Airbnb
Another way that renters can earn from their rental experience is to rent their living space on Airbnb, said Sebastian Jania, the owner of Ontario Property Buyers, a real estate solutions and investment company.
“I’ve seen multiple people who live in the same city as some of their family members and whenever they get a booking on Airbnb they simply leave their rental until that guest has left,” Jania said.
He added that what makes this possible is that the temporarily displaced renter can move back in with their family for a short period, paying no rent, and thus making a profit on the spread between their rent and booking rate.
Just be careful, warned Nicole Beauchamp, associate broker with Sotheby’s International Realty, “Subletting can be potentially complicated because it depends on what is in your lease.”
Host an Event or Workshop
Another great way to earn some income is to host an event or workshop in your rental space, Feick said.
“But keep in mind that location has a lot to do with this strategy. You’ll want to make sure the property is in a desirable location.”
Faccone has seen this trend of people generating income through hosting events as wide as weddings, birthdays and workshops in rental properties.
“I advise you to check with your landlord or property management company before hosting an event and make sure you have proper insurance coverage,” Faccone said.
Run a Home-Based Business
Another way renters can make money from the rental experience is to use their rental space for a business, according to Jania. Not only does this allow you to earn income while renting, you can often write off some or all of the costs of your rent for a home-based business.
Do a Skills Assessment
Beauchamp recommended that if you want to run a business or side hustle out of your rental, but don’t quite know what yet, you take a minute to figure out what you’re capable of.
“I think the first step is to start with a skills assessment that you think could have some marketability where you could be starting a business or running something out of your home to generate income,” she said.
Or if you have an existing talent, it could be time to work with that, she said.
“Maybe you’re a photographer and sometimes you do shoots at your home. Maybe you’re a chef or like to bake, maybe you’re a stylist. [Your talent] really will drive how you may think about using your space to generate income.”
Create Content
Another way to make money with a rental is to use social media to create content related to your living arrangements or lifestyle, Feick said.
“If it’s good, you can attract sponsorships or ad revenue.”
With any of these money-making ventures, just make sure you fully understand your rental agreement and local regulations to make sure you’re going about things in a legal and respectful way.
Co-Living Initiatives
Faccone also recommended that renters keep some of their rental money by figuring out creative co-living initiatives, where renters share their living space with others for a fee.
“This not only helps to cover the cost of rent but also creates a sense of community and shared responsibility among tenants,” he said. “For instance, you can offer a spare bedroom or even partition off a section of your living room to create an extra sleeping space.”
Green Space Hosting
Lastly, Faccone suggested a unique approach to renting in reverse-hosting green spaces such as a rooftop garden or a backyard.
“There is an increasing demand for access to green spaces among urban dwellers with the growing trend of sustainable living. My best tip is to rent out your unused outdoor space, rooftop, balcony, or garden for workshops, yoga classes, or small events in the green area.”
Consider Safety and Rules
Even if your lease allows your venture, Beauchamp warned, “Be careful when you invite others into your space for business reasons.”
She urged that you think about your safety as well as the rules of the lease and/or the building you rent from. Also, think about your neighbors.
“People may not want to live next to a place where people are coming in and out. It’s really being very mindful about all of those things and figuring that out earlier rather than later.”
Beauchamp also suggested you err on the side of caution and try to figure out who you should talk to depending on what you’re planning on doing.
“What are the rules for businesses out of the home wherever you’re renting, locational issues as well. The city or county might have specific rules, too,” she said. “You might need a business license, a permit, and/or insurance.”
While earning money as a renter takes creativity and planning, it may be financially worth it if you go about it correctly.
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