B45 - Other Ideas for Generating Income from Your Home

There are a number of ways you can use your home to generate extra income - all it takes is a little creative thinking.

However, you'll need to consider issues such as council rules, tax and insurance cover before committing to any option.

Talk first with an accountant, Inland Revenue and your insurance company, and check with your council for any local regulations and obligations relating to activities that can be carried out in residential areas.

Rent out a room to travellers

If you don't like the idea of having someone in your house full time, you could rent out a room on a short-term basis to travellers. You can sign up with travel accommodation websites, such as rentasofa (www.rentasofa.com) or airbnb (www.airbnb.co.nz) to advertise your space.

Rent out your home as a holiday let

You will need to find somewhere else to live for that time. You could house sit for someone.

Rent out spare space for storage

You could rent out an unused shed or garage for storage. You need to consider how often you would feel comfortable having the renter come to access their belongings and what you would allow them to store, and you need to check whether your insurance covers damage to other people's property in case of an accident. For a fee, you can list your space online with websites such as sharedspace (www.sharedspace.co.nz) or advertise in your community newspaper.

Rent out a room as an office or studio space

Increasingly, people are renting out residential spaces for commercial use. If you have a spare room, sleepout or unused garage in good condition, you could consider renting it as a studio space or office. Visit sharedspace (www.sharedspace.co.nz) for more details and have a look at their template for a shared office space agreement.

Rent out your driveway or garage for parking

You could rent out an unused garage or driveway to motorists looking for affordable parking. Parkable (www.parkable.co.nz) and ParkBubble (www.parkbubble.com) are websites that match people looking to rent out a space with people looking for somewhere to park.

Rent out your home as the set for a movie or commercial

Movie location scouts and photographers are always looking for new and interesting locations for films or photo shoots.

Visit www.sharedspace.co.nz/listings/commercial/19/shoot-location.html for more details.

You should check with the production company first that their insurance will cover the cost of any damage they cause.

Pros

Cons

What do I need in order to take this option?

Could this option limit my future choices?

No, as long as you familiarise yourself with the regulations and declare your earnings.

For more information

Inland Revenue run free seminars and workshops for those who are new to business. See: www.ird.govt.nz/tool-for-business/manage-tax/seminars/