If you have a basement in your home, why not turn it into a money maker? Make money with your basement that you can use to pay down your mortgage or as an extra source of income.
First start with a clean basement. This is usually the hardest part. Most people have basements that are filled with lots of stuff. Take everything out and either find new homes for it in other parts of your house or get rid of it (which is an extra money-making opportunity right there). Clean the area thoroughly. Now it is time to make some money.
There are at least four ways that you can make money with your basement:
- You can use the space to start your own money making business
- You can rent out the basement for storage
- You can rent out the basement as an apartment
- You can rent out the basement to a small business.
Each opportunity comes with its’s own preparation. With all money making ideas, having a separate entrance, such as with a walk out basement is very beneficial.
Starting your own business in the basement can have some serious tax benefits. Make sure you have a firm plan before you get started, including whether or not you will need to eventually hire employees.
Renting out your basement for storage is probably the least disruptive to your household. You will need to make sure that your basement is dry. You also may want to consider installing a cage or sectioning off a part of your basement behind sheetrock walls and a door. This way, your renter can lock up his or her stuff, and this will protect you as well. You’ll need to have a contract and know what will happen if there is failure to pay rent or if the stuff is abandoned.
If you are renting as an apartment or to a business, there are many other considerations, such as redoing the space to code, such as adding windows and insulation if needed. You will also need to check the zoning laws in your area to see if it is even possible to have your home zoned as a two-unit home. Renting out the basement as a room instead of an apartment requires less regulation, but also less income.
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