The effects of the COVID-19 pandemic on the housing industry are yet to be explored. However, experts estimate rising demand in the coming years. Lower mortgage rates and the availability of more real estate inventory are contributing factors. If you own a home, monetizing strategies include selling it to rake in the profits or rent it out. Rental income can cover not just mortgage payments but also the cost of utilities, repairs, maintenance, and insurance premiums. Read ahead for information about the best ways to monetize your property in 2021.
Sell Your Home
If you think that your house is unlikely to gain value in the coming years, selling it and moving to a new location could be an option. You could purchase a new property closer to where you work or friends and family. Many digital nomads are increasingly moving to places where they see themselves retiring down the line. The possibility of living and working from any location and earning a high income is an attractive proposition. Check with your local realtor for the best prices you can get for your house. Remember to factor in the overhead costs for sale, including the real estate agent’s service charges, typically around 5% to 6% of the sale price.
Renting Out the House
Homeowners who are not quite ready to sell can instead opt to rent out their houses. If you have alternate residences, consider leasing out the primary home. This option is also practical if you’ve been going through a temporary financial crunch. The rental income you earn can be used to pay off the mortgage and other costs. At the same time, you’ll maintain ownership until the time you can move back home.
Building a Rental Suite
Depending on the regulations of the neighborhood where you live, you could add a rental suite to your property. Convert your basement into an additional suite or build one above the garage. If you have space and can acquire the necessary local municipal permits, you could invest in a free-standing structure on your property. Make sure the suite has a fully functioning kitchen and bathroom along with a separate entrance that tenants can use.
Renting out the suite as a short-term rental to vacationers and business travelers visiting the city is yet another excellent way to monetize your property. Even if you don’t have a separate guest suite, consider listing a single room or a couple of rooms on Airbnb, TurnKey, FlipKey, HouseTrip, and various other sites. This option also works well for people wishing to go on vacations or intending to travel abroad for work for an extended time. Tools like the rental channel manager assist you in handling tasks such as keeping bookings organized and setting up cleaning and maintenance schedules. You can also post images of the place, publish reviews, accept payments, and connect with guests.
Your home or any other real estate you own can be monetized with a bit of smart thinking. Explore your options and start making money now!