Lucrative Passive Income Ideas Other Than Renting Your Property to Tenants
Most major sporting events have fallen away this year, and if you have kids at home, you may have had the latest Spongebob movie on repeat in the house instead. We get that this isn’t exactly the same as unwinding to the Olympics with a cold beer in hand... and all we can say is we feel your pain.
On the working front, and especially if you're a property owner, you may have also had other unexpected challenges to deal with. Finding tenants in a time when people are understandably more frightened to move has probably been a little harder than usual, and on top of that, a September survey by PWC found that people are increasingly looking to move to lower density areas instead of city centres.
But even if your property is temporarily empty, it doesn’t mean that your passive income should completely dry up, right
Passive Income Ideas for Landlord
Instead of waiting around for things to return to “normal”, we’ve done the digging for you, and thought of a few ideas for you to keep earning a passive income even without the prospect of finding long-term tenants for your property.
That way, you’ll be able to add to the passive earnings pot again well ahead of the return of Wimbledon (or dare we say in case your kids are around, the release of the new Minions movie) in the new year.
1) Rent out your extra space
With the best tennis tournament in the world firmly in our thoughts, a quote from the late great Arthur Ashe springs to mind. He famously encouraged others to “start where you are, use what you have, and do what you can”.
Start where you are, use what you have, and do what you can.
If you apply this to your own property, it may turn into a lucrative opportunity to earn a passive income. Start by looking more closely at the individual spaces, and ask yourself if these can be carved out into smaller opportunities. You could rent out a garage as storage space, for example, which will bring some income in even when the house itself is empty.The ideas around how you could rent your space are endless when you “use what you have”. A basement, loft or shed can easily turn into a short-term storage space for a family busy with renovations in their home. A spare room could be rented out to a short-stay healthcare worker from out of town. Catch our drift?
2) Explore new business opportunities
A time of crisis can be an opportunity for great innovation, and quick thinking could solve a problem and bring in some passive income as well. How about offering up some of your space to a small business that might have been put out over the course of the pandemic? Many businesses have had to get out of their long-term leases in the uncertainty of the recent months, and will be looking to regroup after the second hard lockdown runs its course.
Pro tip: Remember to find out about any restrictions on business activities in your building before thinking about giving this a go. It might be surprising to learn that a little over thirty years ago, the UK didn’t even have a self-storage industry. It now has the biggest one in Europe, which proves that gainful business doesn’t always have to be flashy or “sexy”. Keeping this in mind, it might even be worth your while to offer up some of your free space for short-term commercial warehousing or storage. Sit back and watch the cash roll in.
3) Real estate crowdfunding
You already know just how great it feels to earn a passive income from property. Having been through the process of becoming a land owner, you also have some skills that could be useful in property investment. Think you could pick out other properties that might also be profitable rental opportunities in the future? Real estate crowdfunding is an easy way to earn passive income from smaller investments in properties around the country.
Most online real estate crowdfunding platforms are similar in that they do the hard work of identifying good properties for investors. Once you see one you like, you decide how much you want to put in. Once it’s 100% funded, the sale is scheduled. Tenants are brought in, and the platform collects rent and manages admin. An income is paid out to investors proportionally to the amount invested, in the form of a dividend. Easy peasy.
4) Making the most of spare parking space
If you’re already exploring renting out different parts of your property, it’s worthwhile to throw any extra parking spaces on the lot into the pot too. With Stashbee, it’s possible to earn a passive income by renting out parking to people who work in the area, especially if you live in a city where parking is hard to come by. With pre-set pricing and no hidden fees, you and the tenant will be on the same page from day one. Besides helping you out financially, it turns out you’ll also be creating some good karma. Think about the poor tenant who may have otherwise been forced to spend hours trying to find parking each day!
Keeping The Passive Income Flowing
Staying ahead of the curve (excuse the corona pun!) means thinking out of the box. All is not lost! There are ways to make a passive income in uncertain times even when your beloved property is standing empty for now.
We’ve all had to learn how to be adaptable and resilient this year. This resilience is useful in work and personal finance, as well as when you find yourself at home watching Frozen. Ten times. On a weekend that was meant to be dedicated to a (now cancelled) cricket test match.Enjoy the quality time with the kids, take a deep breath, and let it go. You’re doing great, and things will be back to normal before you can say “signed lease”.
7th Nov 2020