Retired Real Estate Agent • Room Rental Landlord • World Traveler
Before I retired, I realized that my Social Security check was not going to provide me with a comfortable retirement and the ability to travel. Having been self-employed most of my life I had put most of the money I made back into my business and there was nothing left over for any type of retirement fund. To my credit, I had purchased the home I currently live in.
My home had more space than I needed, but I did not want to sell, downsize, or give up my low mortgage rate so I needed to find a way to make use of the extra space in my house to support my retirement.
At first, I tried renting rooms through Airbnb. The extra income was helpful, but the constant turnover, cleaning, scheduling, fees, and local lodging requirements made it feel more like running a small hotel than enjoying retirement.
Eventually, I shifted to renting furnished rooms to longer-term roommates. That changed everything.
Over the past seven years, room rental income has become one of the best financial decisions I have ever made. It has helped me increase my income, keep my home, travel more, and enjoy a more comfortable retirement — all while continuing to live in the house I love.
Most of you, regardless of where you live, are seeing home and apartment rental rates going up at alarming rates. The cost of building (apartment building and homes) has been rising in double digits in most metropolitan areas due to the high cost of construction loans, materials, and labor. Higher mortgage rates and record setting hikes in utility costs are making it more and more difficult for renters to find affordable housing.
I have retired friends of mine that are concerned that they may have to sell their homes because they can no longer afford the increasing costs of homeowner’s insurance, utilities, maintenance and property taxes.
It makes no difference whether you own a home, condo, or townhouse, or whether you are renting a place. These conditions create a strong opportunity for people with extra space to generate additional income. Not only will you be improving your own financial situation, you will be providing people with affordable housing so they can save money or, for some, a nice, safe place to live that they could not afford otherwise.
Related Articles: