Make money using empty space in your home

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Happy hump day! Let's jump in:

• 🏠 Renting out empty space

• 😂 Meme of the day

During a recession everyone is far more likely to downsize (companies and employees alike).

Specifically, people start to downsize, mostly pushed into renting, and suddenly have all this extra stuff they don't know what to do with.

Most don't want to just give up their possessions or sell them. I mean your average recession is only 10 months long. They'll come back for their stuff.

That's where the opportunity lies with this side hustle. It's simple, easy, and my favorite - passive.

You could make money from renting out your dusty crawlspace or empty closets and help people in need. That's what I call a win-win.

There are many ways to do this. You could go the Facebook Marketplace or Craigslist route and list your space for rent or you could use a service like Neighbor, which already has the marketplace, is a little easier to get up and running, but will take a cut (the price of doing business)

If Neighbor sounds interesting it's like Airbnb, but for storage.. and without the pesky guests.

It matches you with paying customers looking for extra space to put their stuff. Whether that be storing a bike, kayak, or a car if you have an extra parking spot.

You may be thinking "But why use Neighbor instead of just an ordinary storage unit?"Because it's on average $40/mo cheaper. And if you're in a big city it will be closer.

Approximately 11% of American households rent out storage space for their excess belongings and with the self-storage industry being one of the fastest growing real estate segments for the last 40 years generating $30 billion in annual revenue.. I don't see it stopping anytime soon.

So, how does it work?

You, the "landlord", list your open space. This could be a garage, driveway, basement, backyard, closet, etc.

Then renters browse. The most common items stored are motorcycles, bikes, furniture, keepsakes, and sports equipment. You might even get a classic car to look at every day if you're lucky (and have the room).

As a host, you have the power to vet and examine everything being stored on your property before granting permission so there's no funny business.

When you receive a booking request, you can chat with your potential renter to find out more about their items and arrange a convenient drop-off time. If you don't give the green light within 24 hours, the reservation will be declined automatically.

How much can you make with neighbor?

Here's a reddit user who made $1,000 a month using the platform.

Other top hosts are raking in up to $10,000 a year according to the site, but I think this is a bit high. It all depends on a few factors:

• Size Matters: The more space you have to rent, the bigger the potential for income.

• Location: If you're in a high-cost-of-living area, you can charge more for your rental space. Think about it, if you have a spacious garage in a bustling city, you can charge premium prices.

• Extras, Extras, Extras: Adding security systems, cameras, climate control, and private access can command premium prices and increase your earning potential.

• Occupancy Rates: The more you rent out your space, the more money you can make.

So, how much can you charge? Well, I've browsed the local listings so you don't have to. Here are some of the rates people are charging for different spaces:

• Garages – $150-$500 per month

• Driveways – $150-300 per month

• Closets – $20-50 per month

• Sheds – $75-200 per month

• Spare bedrooms – $250-$500 per month

And if you're worried about your kids accidentally shattering their expensive glassware, Neighbor offers $1,000,000 in free coverage so you can sleep at night.

HERE'S THE 3 STEPS TO GETTING STARTED:

1. List your space

To get your space on the market bust out that handy measuring tape to take measurements and post a clean and clear photo along with them.

You'll do the basics of setting up an account with some info about your property. From there, it's just a matter of providing accurate measurements and taking some pictures to show off your space. So, clean it up, take some nice photos, and set a price to list it publicly.

2. Be a responsive host

Once your listing is public you'll start to get inquiries from people in your area.

All communication is done through the site or app and you can reply as you see fit. Only accept the ones that you feel comfortable with.

3. Plan the move-in

Once you've selected a suitable tenant, schedule the move-in, finalize the deal, and start getting paid on a monthly basis via Stripe. At the end of each month, it will hit as a direct deposit in your bank account.

Want to add a little extra pizzazz to make even more? Consider offering additional services like pickup and delivery, or even helping your customers pack up their belongings. Not only will this set you apart from other storage options, but you can also charge more for the added convenience.

People are willing to pay premium prices for convenience so take full advantage of it!

Pro Tip #1: Once you get your first few renters ask them to write positive reviews or "Vouches" about your space, service, and overall experience renting with you.

And to get your business mind turning... There's an arbitrage opportunity here. If you can find a space where rent is cheaper than what people are willing to pay for it on the site then you can pocket the difference! But it's up to you to find those opportunities in your area.

Happy hustling! 💪

MEME OF THE DAY

And that's a wrap folks!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.