Do you want to generate passive income from room renting? These days side hustlers are making money online by renting out their extra rooms. Most people who have extra rooms in their homes never consider this idea of generating passive income. Thus they are missing out golden opportunity to make some extra money every month.
You don’t need specialized skills and extra energy or time to generate money by renting your room. All you have to do is to find someone who is searching for a room on different online platforms and share your room rental details. This can be the best idea to generate passive income by letting other people use your extra room.
It is a great option to generate money by renting your spare room if you travel frequently and leave your home empty. By doing this you can earn some extra bucks without doing anything. You can use this passive income for mortgage repayment, save it for your property upgrade or use it for your vacations.
What are the best platforms to generate money by renting your Freespace?
The concept of renting out spare rooms is getting popular day by day. Hotels or guest houses are not the only options anymore. This is not only a great way to earn money online, but also to make some good friends by providing them with space to stay.
There are dozens of platforms through which you can rent out your spare rooms and generate passive income. These platforms work as a negotiator between you and those people who are looking for a room to stay.
Here are the best platforms through which you can rent out your extra rooms.
1: How to Generate Passive Income from Airbnb
Airbnb is the most famous online platform that helps people to rent out their spare rooms or homes to those people who are searching for places to stay in a specific location. This company was founded in 2007 when two designers came up with an idea to rent out their living room. Now, millions of people choose Airbnb to list their spare rooms to generate passive income. The major aim of Airbnb is to help local people generate passive income by renting out their spare rooms to those people who are visiting their area.
How to list your spare room on Airbnb?
With the help of Airbnb, you can also generate money by renting your room. This can be less stressful than renting your whole house. You can enjoy some extra cash while sharing your home.
Follow these steps to list your spare room on Airbnb
1. Make an Airbnb account:
The whole process of signing up on Airbnb is safe and free. All you have to do is make an Airbnb account and sign up for free. After signing in, you have to complete your profile by giving authentic details.
2. Set up your listing:
Listing your spare room on Airbnb is free. You decide on the room rentals and set the date when it is available. Airbnb will charge you 3% of what you charge.
Airbnb provides three options; an entire place shared room or a private room. You have to select one option. When you select an entire place that means you are granting full access to your entire home. But if you select a private room, you are giving them access only to their separate room.
Depending upon the space and condition of your room, you have to select the total number of guests. Provide them with the number of beds so that they can have a comfortable stay at your place.
3. Take some clear pictures of your room:
You need to take some clear pictures of your room because guests pay attention to the photos. If your photography skills are good, you can boost the number of your bookings.
Your Airbnb listing photos demonstrate what type of experience your guests will expect if they choose your room. Therefore, try to make your room cozy and take some attractive photos.
Along with the bedroom photos, attach some good photos of your garden or street to help guests visualize their stay.
4. List your rules:
The most important step in listing your room on Airbnb is to set your home rules and regulations. Airbnb suggests some rules and you have to select the rules that you want to apply to your property.
Each host might have their own rules and Airbnb allows listing your own rules. Therefore, make sure to add some extra rules that you want your guests to follow. You have full authority to set rules because your room your rules.
Your rules will appear on your listing page and guests are supposed to agree to all of them.
5. Set availability and pricing
Before accepting your guests you should set your minimum and maximum stay requirements. It depends upon you how many days you want your guests to stay at your place.
If you set minimum days, you can make more reservations. But it will bring more hassle and more work for you. Therefore, most of the hosts opt for three days because it helps them to maintain the good condition of their property and get trustworthy bookings.
What are the basic requirements for Airbnb hosts?
If you want more guests at your place, you have to provide them comfortable and reliable atmosphere. Here are the basic requirements for each listing
· Provide basic facilities like soaps, tissue papers, towels, pillows, etc.
· Maintain a high response rate by replying to the booking requests on time.
· Accept requests from guests and welcome them whenever your room is available.
· Always try to avoid cancellations because the travel plans of guests depend on it.
· Maintain your room and maintain your overall rating.
With the help of Airbnb, you can easily rent a room for money and make your bank balance. When you complete your listing with attractive photos and authentic information about you as a host, you can attract more bookings and make more money.
2: How to Generate Passive Income from Homestay:
Homestay is the best online platform that helps you generate money by renting your room. It connects guests to hosts in 150 countries. One of the best features of this platform is that it has an online video chat feature that helps both host and the guest communicate before booking. Such platforms might overtake the hotel business in the future. If you want to generate passive income, you need to decorate your spare rooms and list them on Homestay to connect with guests from all over the world.
By creating your profile on Homestay.com, you will be able to host travellers and earn money online as well as some good friends.
The process of signing up as a host on Homestay is simple and free. You have to create your profile and set the rate for your spare room, and guests will contact you. The guests will pay you either on their arrival or in advance through PayPal or bank transfer. You will get 85% of the total amount.
How to list your spare room on Homestay?
Being a host is a great way to meet people and make some good friends from all over the world. Hosting through Homestay helps you make some extra cash by connecting to guests from different places. This will not only help you make some money but it will also help you learn different languages and cultures.
Follow these steps to generate money by renting your room through Homestay
1. Sign up on the Homestay website
The first step to earning money through Homestay is signing up on the Homestay website. The process is quite simple and easy. You can sign up for free.
After creating an account, you have to select “become a host option” and then you are supposed to complete 8 step process in order to create your listing on Homestay.
2. Provide authentic information about yourself
After signing in, you have to provide your information like your name, your email address, and your phone number.
This information must be authentic because you will lose your guests if they find out something suspicious. You should provide the phone number which you are currently using.
3. Describe the type of your place
After making an account on Homestay, the most important part is to describe your place. You have to provide information regarding your property and space. Most importantly you need to mention whether you are just renting out your room or your entire house. You need to describe the type of house you are living in. whether it’s an apartment or a villa etc.
4. Set rules
Before welcoming your guests, you should tell them your rules so that they can follow them to avoid inconveniences.
5. Provide your location
The next step is to provide your accurate location so that the guests will easily find your place. Provide details about your area and directions to the home.
6. Give relevant information about the room and amenities
You have to give details regarding the room you want to rent out. You have to mention that either it is single or double. You also have to mention whether it has attacked the bathroom or not? Give relevant information about the room.
You also have to mention what amenities you offer to your guests. E.g. Wi-Fi, TV, car parking, breakfast, etc.
7. Availability of the room
You are almost there. The second last step is to update your availability calendar and block out the days you are available to host your guests.
8. Photos
Photos! The most important part. If you click some attractive and clear pictures, you will definitely attract more guests to your profile. Try to include the best photos of your place and make sure the room looks cozy and tidy.
9. Other information
This is the last and final step to list your space on Homestay. In this step, you have to mention your hobbies, your pets, and whether you will allow your guest to smoke at home or not.
Once you complete your profile, you will have to review it. Guests can book to stay at your place.
You are all set to welcome your guests and earn money online.
With Homestay you will learn a lot from your guests and generate passive income without leaving your home.
3. How to Generate Passive income from Booking.com
Converting your spare room into a rental destination is the best way to generate passive income. Booking.com is a well-known website where you can rent out your home, villa, apartment, or room for a short term. It is a reliable platform just like Airbnb, through which you can generate money by renting your room. These days Booking.com has over 28 billion listings and as a host, you can have flexible policies for price settings. This platform doesn’t act like a contracting party and it doesn’t pay for damages, accidents, or anything, but it acts as an agency.
If you are a new user, don’t worry because listing on Booking.com is so easy and simple. This is a global platform where your property gets in front of millions of people.
How to list your spare room on Booking.com?
Booking.com has separate platforms for guests and hosts. Setting up a listing on this platform is free of cost, but you will have to give 15% of the total rent if your room is booked through this platform.
Getting your room set up on Booking.com is easy. Below mentioned steps will help you list your room as soon as possible.
1. Sign up on Booking.com
The first step to listing your spare room on Booking.com is to create your account on the Booking.com website. After creating an account, you need to create a listing for your spare room. In order to do this, you have to click on the “Add New Property” button from your Booking.com account. You will find multiple options there, such as apartments, hotels, rooms, and alternative places. Choose the option that fits your property.
2. Provide your basic information
On the next page, you will have to enter your basic information about your property and yourself. You need to enter your contact detail, name, and your location.
Make sure you enter your address correctly because it might be possible that Booking.com send you a physical letter for confirmation. After listing your place, it will be difficult for you to change your address. Therefore check your address twice before you submit your listing.
3. Set your price
After providing your information, you have to add the room which you are offering and the price of the room per day. You are supposed to add information regarding the type of your room, total beds in the room, sizes of the bed, and the number of people you want to host.
After that, you have to set the room rental correctly. If you are confused about the pricing, Booking.com will help you to set the price according to your room.
After setting prices, you will need to decide the payment methods. Booking.com offers different payment methods like PayPal, credit card, debit card, or Apple Pay. Select the one that seems convenient to you.
4. Mention the facilities and services that you provide
The facilities and the services you offer are the most important things that will make your listing unique and attractive.
By including the amenities such as breakfast, parking area, WiFi, and languages you speak, you will be able to attract more bookings and make them feel like they will spend a comfortable night at your place.
5. Share photos
Now, it’s time to share some good and attractive photos of your spare room. Before booking, guests will always want to see the photos of the room. Don’t share fake photos because it will create difficulties for you.
Booking.com allows you to post 20 photos. So try to take some good pictures of your room. But, before capturing the photos, make sure that your room is looking neat and clean.
By sharing quality pictures, you will boost your ranking on Booking.com and you will be able to grab the attention of potential customers.
6. Add your terms and conditions
Here come your rules and regulations. This is where you will include your terms and conditions like your cancellation policy, check-in and check-out timings, age restriction, and your own rules that your guests need to know before their arrival.
While writing your terms, try to be as clear and concise as possible. And make sure that there is no confusion for your guests while booking your place.
7. Payment method
So, this is the last step in setting your listing on Booking.com. Here you will include the payment method that you will accept.
Once you are done with the payment method, you are ready to host your guests.
4. How to Generate Passive Income from SpareRoom:
Here’s the situation you are living in a two bedrooms apartment and you are unable to bear the expenses alone. Instead of finding a cheap place, why don’t you share your apartment by advertising your extra room on SpareRoom?
With SpareRoom, you can create an ad and let people know that you have an extra room at your apartment that you want to rent out. In this way, you will find your apartment mate and earn money. You can tell them what type of apartment mate you are looking for. You can advertise it by posting attractive photos and videos and letting people see what your room is like.
How to advertise your room on SpareRoom?
SpareRoom is the most well-known flatmate finding platform. Following are the steps to get started on SpareRoom
1. Create your account and get registered
The first step to advertising your room on SpareRoom is to create your account on its platform and get yourself registered. After creating an account on SpareRoom, you can click on the Register button on the homepage and submit the required information.
2. Submit your basic information
After getting registered, you will need to provide an email address and a password. You will need this email address and password every time you log in to this platform.
Furthermore, you will also need to provide some important information about yourself as an important part of registration.
3. Create an Ad
Now, it’s time to create an ad for your room. In your ad, you have to mention what type of flatmate you are looking for. You can mention the amenities you are going to provide.
4. Add photos and videos
Make your ad attractive by adding some good pictures and videos of your room. This will let people know who you are and in which condition your room is.
Your spare room is all set to advertise on SpareRoom. Now, it’s time to make some money.
What are the tips to consider before renting out your spare room?
Renting out a room at your place to your friends is easy, but if you are renting out to complete stranger, you might feel uncomfortable.
Keep the following consideration in your mind before renting out your room
- · Understand the rules and regulations of your area.
· Background check is important before letting a stranger into your home.
· Interview the interested person thoroughly.
· Understand the benefits and drawbacks of renting out a room.
· Decide the room rental according to the condition of your room.
· Choose the platform to rent out your room.
· Thoroughly check your listing before posting it on any platform.
· Provide the basic amenities to attract more guests.
FAQs on How to Generate Money from Room Renting:
1. What is the best online platform to rent a room?
We suggest you consider the following platforms to rent out your spare room:
· Airbnb
· HomeStay
· Booking.com
· SpareRoom
· Craigslist
· RommieMatch
· Roomster
2. What are the disadvantages of renting a room?
· Your paying guests might damage your property.
· You will be sharing your home with a stranger, you might feel uncomfortable.
· You might get in conflict with the paying guests.
· You can’t expect too much privacy
· there is a risk that your valuables might go missing.
3. Is it worth renting a room in your house?
If you have a spare room at your home and you want to earn money online, you can rent out it to generate passive income. Isn’t it a good idea to turn your spare room into a source of income?
4. Can I rent out my spare room to any stranger?
Renting out your spare room to any stranger might be difficult for you. But there are a lot of authentic sites through which you can rent out your room.
It is always good to consider your friends as your flatmates, but if your friends have their own flats you can check various online platforms to get your paying guests in a short time.
Conclusion:
These days people consider renting their spare room to generate passive income. It is a good idea to generate money by renting your room. It will help you to pay back your loans, manage your bills and save some bucks.
Online platforms made it easy for you to meet people who are searching for rooms near you. Before renting out your spare room, you should do a little bit of research about the pricing and services you need to provide. Don’t waste your spare room. Turn them into a source of income.
