Everywhere you look now, space is at a premium. Parking a car in Vancouver for three hours can set you back $21. Fifty square feet of storage in Toronto can cost you $193/month. According to Rentseeker, my 3-bedroom in Richmond would rent for $1,644! Somehow, we’ve all just accepted that space is expensive, even though the price for renting that space is often flat-out stupid! What if we decided to end the madness? What if, instead of being gouged for square footage, we found a way to make our existing space work for us instead of the other way around? Well, listed below are a few ways you can cash in. You don’t need to live in a mansion either. I’m just a regular guy who recognized an opportunity. You might realize there’s been a cash cow in your backyard all along.
First, the obvious: Get roommates. You don’t have to live alone. I’ve done the math, and by March 2018, I’ll be back to “no rent and no bills” because of what I make from them. I’m sacrificing my home office to make it work, but not really. I’m just moving my office to my currently underutilized living room. To get even more advanced, consider getting into Airbnb if you have a spare room! Here’s an article about it. For the nitty-gritty, here’s another! If that all sounds too stressful, rent to friends because you can still make extra cash in unique circumstances. We still “put people up in our storage closet for about $300/month”, and my friends all know they can come to me if things ever get weird, like if they suddenly get evicted or a relationship splits up. This was my first step. If you’re willing to bring other people into your space, you can profit immensely.
In another example, this book describes how its author uses an MRP (Multi-unit Residential Property) to live rent-free. He even advocates going as extreme as buying a fourplex, renting out three units, and living in only one! In 1999 though, he bought his first duplex and started paying into it. The property was $109,000 in Calexico, CA and his monthly payment was around $900. He lived in one apartment and rented the other for $800/month. That $800 plus his $100 “rent” went straight into home equity! I suspect he’s doing quite well now. This is common and basic optimization of real estate. You probably know a bunch of people doing something similar right now.
I also discovered you don’t need a full room or apartment available to make money. When my dad died, I sold my van, took over his car, and now my parents’ two-car garage in New Westminster has one space open. (I live a few towns over in Richmond.) Remember how expensive storage can be? Well, I know someone desperately in need of storage space. Instead of gouging them though, I’m letting them use that space for $50/month. It’s slightly less convenient for everyone because I’d have to accompany them whenever they need access, but they’d save (and I’d earn) hundreds! It’s win-win because I get to profit, they get to save, and I’ve effectively done a favour for them! It’s great!
Live near an event space? Here in Vancouver, near our local fairgrounds, residents open up their driveways for people to park. Last I checked, the fair itself charges $20 for parking, so let’s say we charge $15/car. Well, if you have a property width of 14.5 metres and a large enough backyard, YOU CAN PARK FIVE VEHICLES LEGALLY. $75/day for a month? That’s over $2,000! Everyone should be doing something like this! You can even monetize a small patch of dirt on the sunny side of your building! I’d gladly pay $50 for a garden space during the summer if I didn’t already have one. We all have access to space that’s “ours”, so let’s use it!
These are just a few examples, but every bit of space in your home should have a job. Let it make money for you. I’m a few thousand richer every year because I abide by that. Can you do the same and live rent-free? Tell us in the comments.