Are Room Rentals Profitable?
If you live in an area that is frequented by tourists or business travelers, consider renting a room as a way to increase your income. Before you jump on this idea and post an ad in your local classifieds, there are some things to consider. The first question is: are room rentals profitable. The answer is yes and no. Let’s look at these answer separately because your profitability is dependent on more than location.
Yes! I Can Earn Money Renting My Extra Room
A positive attitude and a love of people are very important for those who think room rentals are profitable. Start with the right frame of mind and then consider these factors:
What condition is your home in?
Do you live in a safe and welcoming neighborhood?
How big is the room you plan to rent?
Will your guest have a private bath?
Is there a separate and private entrance to your guestroom?
Along with a friendly demeanor, your room rental success will depend on you providing a clean and attractive space in a safe and attractive neighborhood. If the room is too small, your guest will feel cramped and stressed. Strangers like to have their own private bath, and a separate entrance is a plus. Often guesthouse rentals are more attractive to travelers than private room rentals.
No! I Can’t Afford the Renovations Needed to Offer Room Rentals
Not so fast. If your home is in a good neighborhood, and it is conveniently located to tourist attractions or a business district, you can probably afford to rent a room. Here are some inexpensive ideas that can make an old room look new fast.
Fresh paint is the easiest and least expensive way to update a room or home.
New bathroom fixtures will spice up the guest bath.
Redecorate the room to reflect contemporary tastes and your local culture.
Give the entire house a top down cleaning.
These tips will get your started. As you build a reputation as a gracious and accommodating host, you can begin to invest in bigger renovations around your home or guesthouse.
It’s All About the Host
The best guesthouse rentals and private room rentals are really about the host. Most guests will forgive the leaking shower if the host is friendly, helpful and gracious. Just be extremely honest about your accommodations so there are no surprises. Be willing to make an immediate refund if your guest in unsatisfied upon arrival.
Spell out your room rental terms and stick to them. It’s o.k. to request a deposit. Not everyone who rents from a private home owner will be as gracious as you. Seasoned travelers expect to put down a deposit, so don’t be afraid to ask for it.
You room rentals business can be a great way to invest in your entire home. Your property is an investment, and it will appreciate in value if you keep it up-to-date and structurally sound. Let tourists and business travelers help you protect your investment.
Louise is a freelance writer living in Austin, Texas. He writes about ways to keep the quality of life high while keeping the budget low. His articles often center around home and family, but not just the traditional definition of family! Paige is a lifelong learner who loves to share is knowledge and ideas with anyone who believes that the good life doesn’t have to be an expensive life.