Turn Your Property into a Second Income with the Sharing Economy
Anna Lebedeva writing on second incomes…
Lori DiPasquale, of Colorado Springs, has turned a charming, cottage behind her home into a second income.
The rapid growth of the sharing economy means that there are plenty of opportunities for earning some serious side income by renting out a spare room…an empty cottage…or even your entire family home.
“I rented the cottage behind my home for many years, often to people who were on a limited budget. When my last tenant left, I decided that it was time to allow the cottage to help me out more substantially, financially,” she says.
“I am saving money to take my daughters, who are turning 18 and 23 next year, on a fun adventure for their birthdays. Maybe we’ll go to Italy,” she says.
Lori, an artist and decorative painter, began with renovations.
“I spent about $5,000 to clean up the cottage, redo some floors, improve the shower, do some electrical work, and buy a dishwasher and furnishings. I did all the painting myself to save some money wherever I could.”
She is also planning to put in a pergola for people to enjoy their coffee and wine outside.
She charges $150 per night and, although she hasn’t broken even just yet, Lori is delighted with the way her Airbnb venture is going and enjoys the social aspect of hosting.
“My summer months were pretty full with the number of bookings tapering to weekends mainly in September and October. I love being a host, meeting new people, and creating a peaceful place for people to relax and feel at home.
Lori is in the process of getting set up to collect lodging tax, which is required by law and can be done with the help of a professional accountant for a small, yearly fee.
Lori’s cottage is located in a pretty and tranquil neighborhood in Colorado Springs close to the city center, which helps to attract guests.
“It is a very safe place, only minutes away from the downtown area,” she says.
So, how much money can you make listing your accommodation on Airbnb?
A lot depends on the property location. Big cities such as Dallas, Detroit, San Diego, and Miami are often listed as the best and most profitable for Airbnb rentals. According to Smartasset, hosts in Houston and Philadelphia can pay a whopping 106% and 94%, respectively, of their rent by listing one room in a two-bedroom home on Airbnb.
If your property is located near tourist attractions, great restaurants, or public transport, you can certainly use that as a selling point.
P.S. Discover how you can enjoy a more laidback, authentic, independent way of life in The Savvy Retiree Daily. Sign up below to have it delivered – free of charge – to your email inbox.
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