Owning a house is great. You get to live in your own space and have complete control over who comes in and out. Plus, you get all the benefits that come with being a homeowner, like potential tax breaks and increased equity. But did you know that your home can also be a source of income?
Here are 4 ways you can make some money from your home.
Lease Out a Room
One of the most popular ways to make money from your home is by leasing out a room. You can get this done in different ways.
For example, you can hire a property leasing service to find a tenant for you and handle all the paperwork. This is a good idea especially if you want tenants to be screened. Or, if you’d rather handle everything yourself, you can list your room on websites like Airbnb or VRBO.
If you choose the second option, you should be aware of the risks of leasing your home and how to take steps to mitigate the risks yourself. For example, a tenant might damage your property. You can mitigate this risk by having them sign a lease agreement that outlines the expectations for the care of your property.
Another risk is that your tenant might not pay rent on time or at all. To help mitigate this risk, you can insist on the first and last month’s rent upfront.
Rent Out Your Garage
If you have an extra garage or one you don’t use, you can rent it out as a storage space. Plenty of people need storage space but don’t have the room in their own homes. Read more about How Is Wholesale Real Estate Different In California?
It’s as easy as listing your garage on websites like Craigslist. Just be sure to set clear expectations with potential renters. For example, you should make it clear if the space is only accessible during daylight hours.
You should also consider getting renters insurance to protect your property.
Rent Out Your Driveway
Parking space is in very high demand because of factors like rapid population growth and an increase in cars per household. If you live in an urban area, you can list your driveway on websites like JustPark.
You can also contact local businesses to see if they’d be interested in renting out your space for their employees or customers. For example, a nearby restaurant might want to rent out your driveway for their delivery drivers or parking for customers.
Base of Operations
You can also use your home as a base of operations to offer services like pet-sitting, or childcare.
If you choose to offer services like these, be sure to do your research first so you’re in accordance with the law. For example, if you’re going to offer childcare, you should be CPR certified and have a solid understanding of child development.
You should also create a business plan that outlines things like your pricing, target market, and marketing strategy. These are just a few of the ways you can make money from your home. So if you’re looking for a little extra cash, see what opportunities are available to you right in your own backyard.
More Ways to Earn Money From Your Home
Leasing a room and renting your garage are only the start. Here are more options. Rent out a spare room on a short-term basis through Airbnb or Vrbo. Short-term rentals often earn more per night than a long-term lease, but they need more work, such as cleaning between guests. Rent out storage space in your attic, basement, or shed. People pay to store boxes, bikes, and seasonal items. Rent out your garden for events or photo shoots. A nice garden suits small parties, weddings, and filming. Sell what you grow. A vegetable garden can supply herbs, vegetables, and flowers for a local market. Install solar panels and sell extra power back to the grid, if your area allows it. Check your local rules first, because not every area allows home solar sales. Each option has different costs and rules. Start with one that fits your home and your time.
What Can You Earn? A Simple Comparison
| Option | Typical income | Work needed |
|---|---|---|
| Lease a room long-term | Steady monthly rent | Low after setup |
| Short-term rental (Airbnb) | Higher per night, varies by season | High, cleaning between guests |
| Rent out garage or storage | Low to medium monthly rent | Low |
| Rent out driveway | Low monthly rent | Very low |
| Home-based services | Depends on hours and rates | High, active work |
Income varies by location, demand, and season. A room in a big city earns more than a room in a small town. Do not rely on rough estimates. Check what similar spaces charge in your area before you set a price.
Tax, Insurance, and Rules: What to Check First
Check your local rules before you rent out any part of your home. Many cities require a permit or a licence for short-term rentals. Some homeowner associations (HOAs) ban rentals. Your mortgage lender may also have rules about renting. Tell your home insurer before you rent. A standard home insurance policy may not cover paying guests or tenants. You may need landlord insurance or a short-term rental policy. Keep records of all income. In most countries, rental income is taxable. In the US, the Internal Revenue Service (IRS) taxes rental income, and you may deduct some expenses, such as repairs and insurance. Check the current rules for your country. Keep receipts for repairs, cleaning, and insurance. Good records make tax time easier. If you are unsure, ask a local tax adviser.
Frequently Asked Questions
What is the easiest way to make money from your home?
Renting out a spare room, a garage, or a driveway is the easiest way. These options need little work after setup. A long-term room rental gives steady monthly income. A driveway rental needs almost no work at all.
Can I rent out a room in my house?
Yes. You can lease a room long-term or rent it short-term through Airbnb or Vrbo. Check your local rules, your HOA, and your mortgage terms first. Tell your insurer. Use a written lease agreement and screen your tenants.
Do I need insurance to rent out part of my home?
Yes. A standard home insurance policy may not cover paying guests or tenants. You may need landlord insurance or a short-term rental policy. Ask your insurer what cover you need before you start renting.
Is rental income taxable?
In most countries, rental income is taxable. In the US, the IRS taxes rental income, and you may deduct some expenses such as repairs and insurance. Keep records and receipts. Check the current rules for your country.
How much can I earn by renting out my driveway?
It depends on your location. A driveway near a city centre, a station, or a stadium earns more than one in a quiet suburb. Check what similar spaces charge in your area on sites such as JustPark before you set a price.
Disclaimer: This guide gives general information about earning money from your home. This guide gives no investment advice for readers. Tax rules, insurance needs, and rental laws differ by country and city and can change. Check the rules where you live before you rent out part of your home.
Last Updated: 6 November 2026