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By Evelyn Long
House hacking is a money-saving method that can prove beneficial for a variety of homeowners, particularly when used to jumpstart a transition into real estate investment. In short, the practice of house hacking is to have tenants who pay rent and utilities on a property you own — likely, a property that you live in yourself.
Does that mean budding real estate investors have to find an available duplex? Not necessarily. House hacking can be pursued a few different ways, especially in today’s day and age. From parking to roommates, there are many options for hacking your house to suit your needs and help you out financially.
Here’s a rundown of some of your options when it comes to house hacking.
1. Finding an Affordable Home
This might seem obvious, but it’s core to the strategy. Your first step in hacking your house is finding an affordable home to live in, with some excess space — or room to create an excess space to hack. The main point of hacking your house is to make a responsible financial decision, not to fund your lifestyle while you live in a house that’s actually too expensive for your means.
Real estate investors can then leverage the benefits of house hacking to increase their rental investments down the line. Since finding the money for an initial property can be challenging, turning an affordable home into a money-maker can make this process more accessible.
2. Creating a Separate Space
One of the more popular methods of house hacking is to create an entirely separate apartment-style space, usually with its own entrance. This is because it allows both the owner and the tenant to maintain privacy, while still helping the owner balance their mortgage.
While some people use their attic, their basement, or even convert their garage, how you go about it will likely depend on what your specific house has to offer. Some people even choose to live in a smaller unit while renting out their primary residence if they don’t need as much space.
3. Go for a Roommate Situation
While many people would rather not interact with their tenants, others might embrace the opportunity to host someone in their home. This seems more likely for younger investors, but even more established homeowners might like the idea of sharing space, too — it all depends on your comfort level.
If you’ve had roommates before and you’re willing to do it again, inviting a roommate into your home could be a great way to hack your house — especially because you likely won’t need to renovate your home in order to put someone in your spare bedroom.
If this doesn’t scare you, just take care with the vetting process.
4. Renting Out Storage Space
If you don’t want someone else on your premises, you can still hack your home. Renting out storage space is a great way to do it. If you know anybody who needs basement or attic storage space, offering it up for a flat monthly rate can be a great method for making a bit of cash on the side without having to renovate your home or get a roommate.
5. Garage Space
Speaking of garages and storage, there are plenty of homeowners who have more garage space than they have cars, and that can be the perfect opportunity to hack your house using the available garage space you have right under your nose.
Whether you know someone in need of car storage or other storage, this is a great choice for a bit of extra cash flow. This is particularly true in more urban areas, where off-street parking is considered a luxury many tenants are willing to pay for.
6. Airbnb
If you’re interested in becoming a host with the most, you can always hack your house and bring in a lucrative stream of income by renting your house to travelers and guests on Airbnb.
While this option may be a bit more labor-intensive, it’s also one of the most lucrative if your home is located in a desirable spot. Short-term guests may end up paying more for these spaces than those renting on a long-term, monthly basis.
7. Tiny Parking
There are so many people looking for alternative living styles, and that includes RVs, van build outs, and full-on tiny houses. This is a great way to hack your house or property, as renting space to tiny dwellers involves little more than offering a parking space.
House hackers will need to carefully research state and local ordinances to determine what the current stance on zoning is for tiny homes. If these structures are allowed on the property, it can be an easy and lucrative way to invite tenants into your space. Whether it’s your driveway or an open space in your backyard for a tiny house, your tenants will bring their own home, and all you need to do is allow parking.
In Summary
There are so many ways to hack your home so you can make a little extra income without having to get a side hustle. Your home and your space can totally work for you! Whether you get a roommate, rent storage space, or lend a corner to someone’s tiny living style, house hacking is the way of the future.
Author
Evelyn Long is the editor-in-chief of Renovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications.
