Between property taxes, mortgage payments, utilities, and maintenance costs, owning one house is enough to drain your monthly earnings. But if you’re fortunate enough to have a vacation home or second property, there are plenty of ways to use it to generate passive income. Dive into the best ways to make money with your second property here.
Make It a Long-Term Rental
There will always be people looking to rent rather than buy, and you can rent out your second property to them if you don’t plan on living there anytime soon. This way, you can make money as they pay rent, and you won’t have to worry about the house sitting empty for a long period. Fortunately, renters look for many different types of rental properties depending on their particular needs, so your property is sure to be a great fit for someone. Remember, though, that even if you acquire a tenant for your property, you’ll still be responsible for general repairs and wear and tear.
Make It a Vacation Rental
One of the most popular ways to make money from a second home is to make it a vacation rental. Whether you go through Airbnb, Vrbo, or another rental site, you can reach many people by including photos, personalized descriptions, and other information in the listing. Furthermore, if you list your second home at a generally affordable price, people will be more likely to book your property for their vacation.
If you choose to turn your property into a vacation rental, you’ll have lots of people in and out of your house, but you can decide when you want them there. Suppose you want to stay there one weekend each month—you can make it unavailable for rent during that time.
Run a Bed-and-Breakfast
Running a bed-and-breakfast is an excellent way to use your second property. This option may require more work than the others, but it can be so much fun. You’ll meet tons of new people, participate in awesome events, and put your planning skills to use. And while managing a business such as this can be challenging, you canhire people to alleviate some of the workload.
Rent It Out for Storage
Believe it or not, you can avoid dealing with tenants and vacationers and still make money from your second home by allowing people to store their stuff there for a fee. While storage units are still in high demand, you can provide a lower rate and better security, making this a great way to monetize your secondary property. You could even consider isolating the storage space to one area of your home so that you can still use the property for vacation or short-term rentals.
Now that you know the best ways to make money with your second property, you can capitalize on this opportunity to add another income stream and manage the costs of owning the property.