A source of income you might be ignoring

If you're a homeowner, your biggest asset can earn you serious cash.

This post is inspired by a friend of mine who is currently slogging through multiple rounds of interviews for an almost dream job.  Why the almost part?  It will require her to take a pay cut.  A big one. 

Taking a pay cut can be scary.  But I’d venture to say that a great job could be worth it.  

When the marketing magazine Marketing to Women came out with an article last year arguing that women are less motivated by money than by work-life balance, I wasn’t surprised.  

Plus, there are all sorts of studies showing that, after a point, more money does not significantly impact our happiness.  Armed with that knowledge, there is a strong argument for taking a job you really like even if it pays less. 

The question is how to make it work financially.   

That brings me back to my friend.  Professionally, this job is a leap she's dying to make.  Financially, she's not sure she can absorb the loss of income.  

We’re talking a pretty serious pay cut. In her case, the difference between the pay she’d be giving up and the pay at the new awesome super woman job is more than skipping lunches out and switching to generic brand detergent.  She would need some actual cash each month - with three or four zeros on the end -  to cover the difference.   

I don't have a complete picture of my friend's assets, but I do know she owns a fantastic house in a great neighborhood.  To me, her house is an obvious first place to look for some extra income that might help her make up the difference between her career dreams and her financial reality.  

Considering what her house has to offer, here are some ways she can put her biggest asset to work:  

OPTION 1: Get a traditional boarder

 This option obviously requires that you own a house or have an extra room in your apartment. It also requires willingness to live with someone who you aren’t related to which, depending on your situation, could be a nice change of pace. 

My friend has some great things going for her with this option.  She has two bedrooms and a bathroom available on a private floor of her house. She lives in a great and fairly accessible neighborhood in one of the best school districts around. I suspect she'd have lots of interest from potential boarders.

Taking in a roommate requires you to be picky and a pretty good judge of character.  My husband and I have rented the second bedroom in our condo for the past year and a half, resulting in more than $12,000 in extra income.  It has worked great, in part because the young woman who rents the room is funny, easy going and great to talk to.  It's ok to be picky here. 

OPTION 2: Take in a non-traditional renter  

If you're not ready to commit to a a housemate just yet, there are more temporary arrangements that can ease you into it.  

My friend has two rooms. She can rent them separately or together.  Either or both rooms could be ideal for someone who is looking for a temporary place to stay such as a graduate student or international traveler.  

She could even look to rent the rooms to someone for weekends only.  People who work for consulting companies often travel during the work week and only need a home base from Friday through Sunday.   If any of these combinations works for her and her family it is worth a shot.  A roommate is probably her highest-yielding option.

OPTION 3: Storage Space 
An option if you don't want someone living in your extra room but you don't mind if some of their stuff does?  Rent the space for storage.  

People taking doing extensive overseas travel, deploying with the military or simply in life transition often need somewhere to store their things for a while.  If you have a spare room, basement, garage or shed it might just be the place.  Again, you'll have to use your instincts to be sure this is the right option for you, but you never know what need you'll be able to fill for someone, and what they're willing to pay for it. 

OPTION 4: Parking space / Garage space
Your car port, garage, shed, etc. could be just the thing someone with a motorcycle or classic car is looking for.  If you have extra parking space on your property, why not throw an ad up on Craigslist and see if someone's vehicle needs a house. In urban areas, parking spaces can net as much as several hundred dollars a month.

OPTION 5: Be a Model
Movies, magazines, commercials and other media commonly rent homes and spaces for shoots.  There is no guarantee of a response here, and even if someone does choose to use your space it may take a while for it to happen. But if it works out, pay can be from a few hundred to a thousand dollars a day.  

To sign up, submit your home to film studios, advertising agencies, and production companies, many of which keep a list of possible locations for shooting. 

OPTION 6: Garden Space
Do you have a yard? Are you willing to let someone plant a garden in it? You never know, someone might be willing to pay to use a small plot of your land, especially if you live in a high density area where good gardening is scarce.  This isn't your highest grossing option, but there is an upside: if they plant flowers you'll have something pretty to look at.


Who knows, one of these strategies might just work for you.  Even if they don't, hopefully they encourage you to take a new look at your old resources - there could be some passive income hiding there somewhere.  Happy hunting!