An increasing number of homeowners—particularly younger adults—are seeing their home as a potential revenue stream. They’re more open to renting out their home to generate extra money and help offset the costs of owning, finds a new survey of more than 3,000 consumers conducted by realtor.com®.
Thirty-two percent of consumers say they’ve already rented out a room, space, or outdoor feature of their property. Most often that means taking on a long-term roommate, but they’ve also rented a room on a short-term basis, such as an Airbnb, or rented outdoor spaces, like parking or their yard or pool. Six percent of respondents said they’ve rented their entire home while they were away.
What’s more, 69% of recent home buyers say they would rent out part of their home if it had a separate entrance, kitchen, and bathroom, the survey finds.
“As the next generation of home buyers has embraced ride-sharing and short-term rentals, it’s a natural next step that they begin to think of their biggest asset—their home—as a potential income stream,” says George Ratiu, manager of economic research at realtor.com®. “For people looking to take advantage of the sharing economy, in addition to traditional approaches, it may be worthwhile to explore creative solutions, such as listing your home as a vacation rental when you leave town or renting your outdoor space or pool. Even a small amount of income each month can multiple over a year or more and can turn into bigger returns.”
The main reasons homeowners are showing a willingness to rent out their spaces: extra income for savings (53%), extra spending money (37%), lessening the burden of general monthly expenses (35%), and offsetting major home expenses like the mortgage (29%), the survey shows.