How to start a business with your property

Most US homeowners view their properties as assets. But for something to actually be an asset, it has to produce income. Most homes don’t. 

For many, this is a missed opportunity. Leveraging your home can help you move towards financial freedom faster. It can also generate more income to support your lifestyle right now. 

In this post, we present some ideas for how to turn your property into an income-generation machine. Check them out below.

Use Your Home To Run A Business

With the rise of remote work, using your home to run a business has become much more popular since 2020. The pandemic is encouraging people to explore the range of possibilities open to them they didn’t consider before. Currently, there is an estimated 15 million people running businesses from home, 

There are several advantages to running a business from home. For one, it helps keep costs down. You don’t have to pay separate rent and utilities. 

There are also income tax advantages. For instance, you can claim back office expenses, such as paper clips, stamps and pens. You can also reduce your tax bill by including any items that you purchase such as computers and filing cabinets under your capital allowance. 

Host Events

If you own a high-quality property, you may be able to use it to host events. Owners with large gardens, for instance, can transform their homes into venues for marquee weddings or gigs. Some landowners and farmers host open days at their properties in the summer with market stalls, animal shows or even monster trucks. 

If your property has great views, that can be a selling point. In some cases, you may be able to rent out your home for corporate events, weddings and parties. Make sure that you check with local authorities to ensure that you can run commercial events from your residential address. You may have to apply for permits. 

Grow Vegetables

If you live on a large acreage, you can also think about selling high-value vegetables as a market gardener. Today, consumers want locally grown and organically-reared fruits and vegetables that they can trust. All you need to do is plant the necessary crops, protect them from pests and then sell them at a roadside stall or to a local retailer. 

If possible, market your fresh produce as organic. This will allow you to tap into the current trend for local food produced without pesticides or herbicides. It will also mean you can charge higher margins than if you were selling conventionally-reared fruit and veg. Already, 1 in 3 Americans say they grow their own food. 

Run A Bed And Breakfast

Running a bed and breakfast is popular among homeowners who live in beautiful surroundings or close to major tourist attractions. But don’t worry if your home doesn’t look like a guest house – you can simply lower your prices to attract budget-conscious travelers. 

If you decide to transform your property into a bed and breakfast, you may need to invest. Banks will often allow you to refinance your mortgage to provide the capital you need if they think the idea has income-generating potential. Some sophisticated lenders have modelling tools that will tell you how much money you’re likely to make, allowing you to figure out whether the project is worth it or not, 

Rent Out Accommodation

If you have a separate studio or just spare rooms you are not using at your property, then you might consider renting them out to guests. Obviously, if you live near a tourist hotspot, that can help. But people go on vacation all over the place, including to cities that you would never expect. Others need to travel for business or other purposes. So being close to a university, hospital or large employer can also drum up business. 

There are now more than 600,000 listings on Airbnb across the US. Research the type of accommodation being offered in your local area. Then take a look at how you might need to spruce up the available space in your home. 

Offering rental accommodation sounds like a lot of work, but it doesn’t have to be. Rental platforms do the majority of the advertising and payment processing for you. And you can hire a cleaner to scrub your accommodation every time guests finish using it. You don’t even have to interact with guests if you don’t want to. Just put the keys in a coded lockbox and send them the access code via email.