Renovations That Turn Your Home into a Passive Income Source
In these days of high-interest rates and rising inflation, many homeowners are looking for passive income to supplement their finances. Did you know your house can be a great source of passive revenue generation?
There are several ways to make passive income from your home, from short-term rentals to long-term tenants, at-home businesses and more. But what if your home isn’t big enough or doesn’t have the right layout to be a passive income source?
That’s where LIDA Construction’s team of renovation experts can help. We offer several home renovation and addition options that will expand and reconfigure your home into a space that supports revenue-generating activities.
Read on for passive income ideas that utilize your biggest asset – your home – and our recommendations for renovations and additions to create rentable, income-generating space in your home.
How to Make Money from Your Home
If you are looking to make additional income from your house, the good news is there are lots of ways to do it. If you can invest in your home, it will pay you back, not only with short-term income – but with long-term value, too.
Not sure exactly how to make money from your house? Here are 6 ways to make a passive income from your home:
- Long-term rentals: Renting a portion of your home – i.e., an income suite, basement suite or carriage home. Renovate an unused space in your home, or add additional space if needed. Make sure you are familiar with British Columbia’s rental tenancy regulations before starting this process.
- Short-term rentals: These are a good way to make income from the additional space in your home when it suits you. You may wish to add a separate entrance, kitchenette and soundproofing for everyone’s comfort. Ensure you are familiar with short-term rental operating requirements in your municipality.
- Outdoor events: Do you have a large plot of land or a spectacular view? Then you could consider offering garden rentals for weddings and parties. Add a garden suite for additional income opportunities.
- Investment home rental: Don’t want to share your home? Consider investing in a rental property. Multiple rental suites will give maximum return. Add an extension, renovate the basement or add an entire floor with a house lift. Use a property manager for completely hands-off passive income generation.
- House flipping: Don’t want to be a landlord? Your home can still make you a passive income. Use a renovation expert to update and expand your newly purchased house, then try to sell it for a profit.
- Work from home spaces: Renovating your home to give additional space can also be helpful for those looking to take part in revenue-generating activities from their home – for example:
- Create a dedicated work-from-home space that will allow you to explore new passive income opportunities such as affiliate marketing or drop-shipping.
If your home isn’t currently set up for passive income generation, with a little creativity and effort, you can turn your property into a money-making asset while enjoying the comfort of staying in your own house.
Renovate to Create a Rentable Space
One of the most popular and lucrative ways to generate revenue from your home is through rentals – whether long-term, short-term, in part of your home or a whole home.
Victoria, BC, has one of the tightest rental markets in the country, and the number of new rentals on the market is not enough to keep pace with demand, meaning new rental units are always needed.
Renovating to add an income suite, a carriage home, or lifting your house for extra space all provide opportunities for long-term passive income through rental. If you’re considering turning your home into a passive income source with an addition or renovation, LIDA Construction can help.
There are many options to consider, and the right one will depend on several factors, such as:
- Plot – size and shape
- Size and layout of current home
- What you are hoping to achieve
- Local bylaws and planning requirements (i.e. height restrictions)
LIDA can help by guiding you through the best options for your situation and budget. We are experienced in offering everything from small renovations to complete overhauls and extensions.
See below for the best ways to update your home into a passive income source.
Renovation and Addition Options for Passive Income Generation
Here are some tried and true options for adding income-generating space to your property:
Basement suites are essentially separate living spaces located in a basement area of your home. By renovating this area into a self-contained unit with its own entrance, kitchen, bathroom, and living space, you can easily rent it out to tenants.
So, if you have unused basement space or an underutilized room that could be converted into an independent suite, why not take advantage of it? With minimal investment and effort, you could be well on your way to generating passive income from the comfort of your own home.
*Check out our blog post “Will Adding an In-Law Suite Bring Value to Your Home?” here.
If you find yourself in need of extra space but are limited by the size of your lot, lifting your house could be the answer. By raising your home off the ground, you create a whole new level underneath that can be turned into a basement or lower-level suite.
House lifting offers other benefits, too, such as allowing more natural light to enter the lower level and the opportunity to expand the upper level of the home.
Garden suites are standalone structures built in your backyard, offering a separate and private living area for tenants. These suites can be rented out to generate passive income without compromising the privacy of your main home.
Garden suites offer flexibility when it comes to layout and design. With careful planning, you can create a comfortable and functional space that appeals to potential tenants.
By adding an attractive and well-designed suite to your backyard, you also enhance the appeal and resale value of your home.
These small, self-contained dwellings are often built on top of a new or existing garage, providing opportunities for supplemental income without compromising the privacy of the homeowner or the tenant.
Carriage homes are an excellent long-term investment as they add value to your property and attract potential buyers interested in multifunctional spaces.
Trust LIDA Construction to Unlock Your Home’s Passive Income Potential
LIDA Construction can help you turn your Victoria, BC, property into a profitable asset while also providing much-needed housing solutions for others in your community.
By maximizing your property’s potential, you can generate revenue without much effort. Trust LIDA to guide you through the process and help you maximize your investment. Contact us today and take the first step to making money from your home!
Note: Always consult with a professional, such as a certified financial planner or accountant, to determine the right course of action for you.