Given the uncertainties of the economy, it is always a great idea to have your own business that generates passive income. What you can make from this business can augment your regular income from employment, serve as a source to fund your dream vacation or purchase, or eventually become your main source of livelihood.
Passive income from your home
One passive income business you can get into if you have more space in your home than need or a vacant space within your property is to rent it out. For example, you can register your property on online booking applications so that local or foreign tourists can see what you are offering in terms of location, space, amenities, and cost per day. If they are interested, they can book their preferred dates. The rates for these short bookings start at about $130 per day.
One other option in the rental business is long-term leasing (i.e., at least six months) wherein you can offer your space for rent (bare, semi-furnished, or fully furnished). This would normally require a lease contract, an agreed-to monthly rate, and advance and deposit. Rates for these types of arrangements start at about $2,000 a month, which is lower per day than their short-term booking, but more stable in terms of guaranteed passive income.
Using existing rooms vs. building a separate house
Setting up a rental business requires compliance with local and national regulations, and paying the needed fees, but that should not be too difficult. Once done, you can begin offering your spare room for rent. The harder part, however, is that when you do offer this, your privacy will be compromised. After all, those who rent will be entering and leaving your house based on their routine, use your facilities (bathroom at the very least), and other inconveniences. You can, of course, establish house rules, but these cannot be too restrictive as to make potential renters (especially long-term lessors) look elsewhere.
A better option, if you have vacant land in your property, is to build a smaller second home. Doing this will require some investment but, in the long run, will pay for itself. By doing this, you will be able to maintain your privacy, make your offer more attractive for both tourists and long-term lessors, and generate good passive income. Taking this approach need not be too expensive if you buy ready-to-install granny flat kits, which is made up of prefabricated components based on your requirements that are cheaper than having to purchase raw building materials.
Being able to generate around $2,000 in passive income per month goes a long way in terms of covering your household and personal expenses. You can do this literally from the convenience of your home by going into the rental business. While you can start with renting out your spare room for short-term tourists, the better strategy would be to build a second home in your property using granny flat kits for a more attractive offer for both tourists and long-term lessors.