How to Make Money from Extra Spaces in Your Home: 5 Practical Ideas

The article was originally published on February 26, 2016, and updated on November 2, 2026.

Your spare room, driveway, garage, or backyard could be earning money instead of sitting unused. Explore five ways to rent out unused space, learn what to consider before accepting renters, and use our free calculator to estimate your potential rental income.

Key Takeaways

• Spare rooms, garages, driveways, gardens, and backyards can provide opportunities to earn rental income.
• Location and local demand are often more important than the size of the available space.
• Short-term rentals may earn more per booking but usually require more involvement than longer-term arrangements.
• Rental platforms can help connect property owners with customers, although fees and eligibility requirements vary.
• Homeowners should check zoning restrictions, insurance coverage, taxes, and rental agreements before accepting paying customers.
• The money you collect isn’t necessarily your profit. A rental income calculator can help estimate earnings after fees, vacancies, and operating expenses.

Take a look around your home. Is there a spare bedroom nobody uses? A garage filled with old boxes? Perhaps you have an extra parking space, a large backyard, or a garden that’s more than you need. Those extra spaces might not seem particularly valuable when they’re sitting empty, but someone else could be willing to pay to use them.

For homeowners looking to bring in additional income, renting out extra space can be an appealing option. Unlike starting a traditional business, you may already own the most important asset: the space itself. You don’t necessarily need employees, expensive equipment, or a large investment to get started. Depending on your property and location, you might be able to earn money with a few improvements and some basic preparation.

Of course, having extra space doesn’t automatically mean you’ll find paying customers. A driveway near a busy downtown area may attract regular parking customers, while the same driveway in a quiet neighborhood might generate little interest. A spare bedroom in a popular tourist destination could have steady demand, but you’ll also need to consider cleaning, guest expectations, and local regulations.

The key is to find a rental opportunity that fits your property, your lifestyle, and what people in your area actually need. Here are five ways to make money from unused space in your home, along with some practical advice on getting started and figuring out whether the potential income is worth the effort.

1. Earn Money by Renting Out a Spare Room or Your Home

Renting out a spare bedroom is one of the most familiar ways to earn money from unused space. If your children have moved out, you live alone in a larger house, or you have a guest room that rarely gets used, you may be able to turn that room into an income-producing asset.

You don’t have to rent out your entire house. Some homeowners prefer renting a single private room while continuing to live on the property. Others rent their homes when they’re away for extended periods, provided local rules and their insurance arrangements allow it.

Platforms such as Airbnb connect property owners with travelers looking for short-term accommodations. Depending on your location, you may also find opportunities to rent a room to traveling professionals, students, interns, or people who need temporary housing while relocating.

How Much Can You Make Renting Out a Room?

The amount you can earn depends on your location, the size and condition of the room, nearby attractions, competition, and how often you can attract guests. A room near a university, hospital, convention center, or popular tourist destination may have more demand than one in an area that receives few visitors.

Before setting a price, look at comparable properties in your neighborhood. Check what other hosts charge, whether those prices vary by season, and what guests receive for their money. A private bathroom, reliable Wi-Fi, parking, and convenient access to transportation can make a room more attractive.

It’s also important to calculate what you’ll actually keep. Airbnb charges service fees, and its fee structure depends on the type of listing and booking arrangements. Cleaning supplies, laundry, utilities, maintenance, and the time spent preparing for guests can further reduce your earnings.

What to Consider Before Accepting Guests

Renting a room involves more than taking photographs and creating a listing. You’ll need to make sure guests have a clean, safe, and comfortable place to stay. That may mean investing in better locks, comfortable bedding, smoke detectors, and basic furnishings.

Privacy is another consideration, especially when renting a room inside your home. Think about which areas guests can access, how you’ll handle check-in, and whether you’re comfortable sharing parts of your living space with people you don’t know.

Some cities require short-term rental licenses, inspections, registration, or collection of lodging taxes. Building rules, leases, and homeowners association restrictions may also affect your ability to rent. Check these requirements before you advertise the room rather than assuming that owning a property gives you unrestricted permission to rent it.

If you prefer a more predictable arrangement, renting a furnished room to a longer-term tenant may be worth exploring. You may earn less per night, but you could spend less time managing bookings, cleaning between guests, and handling frequent turnovers.

2. Make Money by Renting Out Your Parking Space

If you have an extra driveway space, an unused garage, or a parking spot that sits empty for most of the day, someone nearby might be willing to pay for it.

Parking can be expensive and frustrating in busy neighborhoods, particularly around office buildings, stadiums, universities, hospitals, airports, and entertainment districts. People who work or attend events in these areas may prefer a convenient private parking space over searching for public parking whenever they visit.

For example, someone living within walking distance of a stadium might be able to rent out an extra driveway space during games and concerts. A homeowner near a business district may find a commuter who needs parking every weekday, while someone living near an apartment complex with limited parking could attract a monthly renter.

How to Find Parking Customers

You can start by checking parking prices in your neighborhood. Look at public garages, metered parking, nearby lots, and any privately advertised spaces. The goal is to find out whether people actually pay for parking in your area and what makes one location more desirable than another.

Services such as Neighbor offer opportunities to list certain parking and vehicle-storage spaces, depending on the property and local availability. You can also explore parking marketplaces serving your particular city or region.

Take clear photographs and describe the parking space accurately. Potential renters will want to know whether it is covered or uncovered, whether large vehicles can fit, how to enter and exit, and whether access is available around the clock.

Is Daily or Monthly Parking Better?

That depends largely on your location and how much involvement you want.

Daily or event-based parking may allow you to adjust prices when demand is high, although bookings may be unpredictable. Monthly parking can provide more consistent income and generally requires less coordination once you have a reliable renter.

Before advertising, check whether local rules permit you to rent the space. Some municipalities restrict commercial parking activity on residential property. You’ll also want to confirm liability and insurance arrangements, especially if you intend to allow customers to park on your property regularly.

Renting out a parking space can be relatively simple, but only if people actually need parking where you live. An empty driveway has little earning potential when free parking is readily available nearby.

3. Earn Money by Renting Out Garage or Storage Space

Many households and small businesses need more storage than they have available. Seasonal decorations, furniture, bicycles, business inventory, and recreational equipment can quickly fill a home or office. Meanwhile, you might have a garage, shed, basement, or other enclosed area that isn’t being used to its full potential.

Renting out storage space allows you to serve that need without necessarily operating a traditional self-storage facility. Some property owners rent an entire garage to one customer, while others offer separate storage areas when their building and local rules make that arrangement practical.

One option is Neighbor, a marketplace where property owners can list eligible garages, sheds, driveways, and other storage spaces. You may also find customers locally, particularly small business owners who need somewhere to keep supplies or inventory.

What Can You Rent Out for Storage?

The types of items your space can accommodate will depend on its size, condition, security, and accessibility. Possibilities include household furniture, bicycles, seasonal decorations, non-hazardous equipment, and packaged business inventory.

A dry, secure garage with convenient access is likely to be more appealing than a damp basement or poorly maintained shed. If your storage space has leaks, pests, extreme temperatures, or inadequate security, address those issues before taking in somebody else’s belongings.

You should also decide what items you will not accept. Hazardous chemicals, flammable materials, illegal goods, perishables, and certain valuable or sensitive items can create safety and liability concerns. Clearly specify any prohibited items in your rental agreement.

How to Make Your Storage Space More Appealing

Start with the basics. Remove clutter, repair leaks, install appropriate locks, and make sure customers can safely enter and retrieve their belongings. Good lighting and clear access instructions can make the experience easier for both you and your renters.

Check local self-storage prices before deciding what to charge. Private storage space may appeal to customers looking for a convenient or affordable alternative, but you still need to offer value compared with established storage businesses.

A written agreement is essential. It should describe the space, permitted contents, rental period, access arrangements, payment terms, insurance responsibilities, and procedures for ending the rental. If a customer stops paying or abandons stored property, don’t simply sell or dispose of their belongings. State and local laws may impose specific notice and lien procedures, and the rules governing a private storage arrangement may differ from those for commercial self-storage facilities.

Storage can be an attractive option for someone who wants relatively predictable income without constantly welcoming new guests or customers. Still, you’ll need to maintain the property, monitor payments, and deal with occasional access or maintenance issues.

4. Earn Money by Renting Out Garden Space

Not everyone has enough outdoor space to grow vegetables, herbs, or flowers. Apartment residents and people with small yards may enjoy gardening but have nowhere suitable to do it. If you have a larger property with an underused sunny area, renting garden plots could offer a way to earn some income while putting the land to productive use.

The idea is similar to a community garden. You divide part of your property into manageable plots and allow individuals to use them for gardening during an agreed period. Depending on the arrangement, renters may bring their own tools and plants, while you provide access to the land and possibly water.

How to Set Up Rental Garden Plots

Before offering garden space, consider whether the property is appropriate for growing food. Sun exposure, drainage, soil conditions, access to water, and previous land use all matter. If there is reason to suspect soil contamination, testing may be necessary before using the area for edible crops.

You should also think about the practical side of having gardeners regularly visit your property. Will they have a separate entrance? Where will they park? Can they use the garden in the evening or on weekends? Who handles weeds, abandoned plants, compost, and cleanup at the end of the growing season?

A garden plot rental agreement should address these questions and establish expectations for water use, permitted activities, maintenance, and how the plot should be returned.

Will Garden Rentals Make Much Money?

Garden plots are unlikely to generate the same revenue as a desirable short-term rental property. However, they may provide a small additional income stream from land you aren’t using, especially in neighborhoods where residents have limited access to garden space.

Rather than relying on a national price estimate, look at local community gardens and plot rental programs to understand what people in your area are accustomed to paying. Consider whether the amount you could charge would cover water, soil preparation, maintenance, and any other expenses.

You may discover that renting a few plots is more worthwhile as a community-oriented side activity than as a major income source. That’s not necessarily a bad outcome, provided you understand the financial picture before making improvements.

Another possibility is renting an attractive garden for photography or small creative projects. This could offer a different income opportunity if the property has appealing landscaping, privacy, and suitable visitor access.

5. Make Money by Renting Out Your Backyard

A backyard can have more earning potential than you might expect, particularly when it offers something people in the surrounding area don’t have. A large fenced yard, scenic garden, outdoor entertaining space, or private open area could appeal to customers seeking a specific type of experience.

Unlike renting a spare room, renting outdoor space doesn’t necessarily require letting customers inside your house. However, you still need to think carefully about property access, safety, insurance, and how visitors will affect your household and neighbors.

Rent Your Backyard as a Private Dog Park

One possibility is allowing dog owners to book private time in your yard. This can appeal to people who don’t have fenced outdoor space or whose dogs aren’t comfortable in crowded public dog parks.

Sniffspot is a marketplace that connects dog owners with hosts offering private outdoor areas. Hosts can create listings, manage availability, and accept bookings through the platform.

A securely fenced yard, convenient entrance, and enough room for dogs to move around can make a property more appealing. Some hosts also provide water, waste bags, seating, or other amenities, although you’ll need to review the platform’s current requirements.

Before offering your yard, consider how you’ll handle cleanup, potential property damage, noise, and any interaction between visiting dogs and your own pets. Also confirm what insurance protection applies and whether your local ordinances allow this type of commercial use.

Rent Your Backyard for Photography and Small Events

If your yard has attractive landscaping, a patio, a pool, or another appealing feature, it may be suitable for photography sessions, video production, or small gatherings.

Platforms such as Peerspace and Giggster connect people looking for locations with property owners who have spaces available to rent. Depending on the platform and local demand, you may be able to offer outdoor areas for photography, content creation, or carefully managed events.

Not every backyard is suitable for this. Customers may need parking, restrooms, electricity, seating, or equipment access. Events may also involve noise, increased traffic, trash, and additional cleanup. A photo session involving two people is very different from hosting a birthday party with dozens of guests.

Start by determining which activities your property can safely and legally accommodate. If you decide to host events, establish limits on the number of guests, hours of use, permitted activities, and responsibility for cleanup or damage.

What About Backyard Camping?

Some homeowners with larger rural properties may consider allowing campers to stay on their land. This can be attractive in scenic areas near hiking trails, lakes, and other outdoor destinations, but it comes with additional considerations.

Camping may require access to toilets, drinking water, waste disposal, and emergency services. Local land-use regulations and health department rules may restrict or prohibit paid camping on residential property.

Before investing in campsites or advertising your property, contact the appropriate local authorities to find out whether the activity is permitted and what facilities may be required.

Which Type of Unused Space Could Make the Most Money?

There’s no single answer. A spare room in a popular travel destination might generate more revenue than a garden plot, but it may also require considerably more time and expense. A parking space near a stadium could earn good money during major events, while the same space might remain empty for much of the year.

The better question is which rental opportunity offers the best balance of income, costs, effort, and risk for your particular property.

A useful way to compare these opportunities is to estimate how often someone might rent the space and then subtract the expenses involved. A property that generates $500 in gross bookings but costs $250 to operate may be less attractive than one that consistently earns $300 with only $40 in expenses.

It’s also worth considering your own time. If you spend several hours cleaning, answering messages, and preparing the space after every booking, the rental may feel less worthwhile than the numbers initially suggest.

Rental Income Calculator: How Much Could Your Unused Space Earn?

Before you list your property or spend money preparing it for renters, calculate what the space might realistically earn. The price you advertise is only one part of the equation. You’ll also need to account for how often the space is rented, marketplace fees, maintenance, cleaning, insurance, and other costs.

Our Unused Space Rental Income Calculator lets you estimate monthly and annual income using your own assumptions. You can use it to compare renting a spare bedroom, parking space, garage, garden plot, or backyard.

How to Use the Rental Income Calculator

Start by selecting the type of space you plan to rent. Enter the amount you expect to charge for each night, day, month, or booking, along with the number of rental periods you could offer each month. If you're renting a garage for one monthly payment, for example, you can enter one available rental period per month.

Next, estimate your occupancy rate. This represents the percentage of available rental periods you expect customers to book. Unless you have reliable local booking data, it's sensible to test several possibilities rather than assuming the space will always be occupied.

Finally, enter platform fees, variable costs such as cleaning or supplies, fixed monthly expenses, and any one-time setup investment. The calculator will estimate your monthly and annual net income before taxes and show approximately how long it could take to recover the setup cost if your assumptions hold.

How to Interpret Your Results

The most useful number isn't necessarily the gross rental income. It's the estimated net income after expenses. That's the amount the rental activity might contribute before taxes and any costs that haven't been included in your estimates.

If your projected earnings are low, try changing the occupancy assumptions or testing a different rental arrangement. For example, a monthly parking rental might produce more predictable results than relying entirely on occasional event parking, even when the event rate is higher.

The calculator is a planning tool, not an income guarantee. Actual occupancy, seasonal demand, unexpected repairs, cancellations, and changes in fees can all affect the final result. It also doesn't determine your taxes or whether a rental activity is legally permitted.

What to Check Before Renting Out Part of Your Property

The prospect of earning extra income can be exciting, particularly when you already have the space available. But renting out part of your home or property is still a financial and legal arrangement, and a little preparation can prevent expensive problems later.

Check Local Zoning and Rental Restrictions

Start by finding out whether the proposed activity is permitted where you live. Residential zoning rules can limit short-term accommodations, commercial parking, storage rentals, events, or other business activities.

The U.S. Small Business Administration explains that local zoning requirements can affect businesses operating from residential properties. Your city or county planning department is the best place to confirm the rules that apply to your particular address.

If your property is part of a homeowners association, condominium association, or lease agreement, review those restrictions as well. Even when a city permits a rental activity, private property rules may impose additional limitations.

Talk to Your Insurance Provider

Don't assume that your homeowners insurance automatically covers every activity involving paying guests or renters. Personal insurance policies may have exclusions or limitations related to commercial use, rental activities, property damage, or injuries involving visitors.

Before renting the space, explain your plans to your insurance agent and ask what coverage you need. Some rental platforms offer host protection or liability programs, but you should review their terms and exclusions rather than treating them as a substitute for an appropriate insurance policy.

The SBA's business insurance guide provides an overview of coverage options and common business risks.

Understand the Tax Implications

Rental income may be taxable, and the rules can differ depending on whether you're renting residential property, part of your personal home, or providing services as part of the rental arrangement.

According to the IRS Publication 527, Residential Rental Property, rental income generally must be reported, subject to applicable exceptions. Certain expenses, such as qualifying repairs, insurance, maintenance, and utilities, may be deductible, although the rules depend on how the property is used.

There are special rules for a home rented for fewer than 15 days during the year, but don't assume that exception applies to every type of rental activity. If you're unsure how to report the income or allocate expenses between personal and rental use, consult a qualified tax professional.

Put Your Agreements in Writing

Even when renting to someone you know, a written agreement helps establish expectations. It should explain what space is being rented, how much the renter pays, when payment is due, what activities are permitted, and who is responsible for damage or maintenance.

The agreement should also address access, cancellations, deposits, and the process for ending the rental. For storage or parking arrangements, make sure the terms match applicable local laws and don't assume you have unrestricted rights to dispose of a renter's belongings or vehicle.

Clear agreements won't eliminate every disagreement, but they can help prevent misunderstandings and give both parties a reference if questions arise.

How to Get Your First Rental Customer

Once you've confirmed that the space can legally be rented and you understand the costs, the next step is finding customers.

Start by studying comparable listings in your local area. Pay attention to prices, photographs, available amenities, customer reviews, and the types of properties attracting attention. If there are very few comparable listings, that may indicate an opportunity, but it could also mean demand is limited.

Create a listing that accurately describes the space and explains what renters can expect. Good photographs matter, but so do practical details such as dimensions, accessibility, parking instructions, availability, and any restrictions.

You don't always need to spend money on advertising immediately. A relevant rental marketplace can help you reach people already searching for that type of space. Local community groups, neighborhood referrals, and word of mouth may also help, provided your advertising complies with applicable rules and platform policies.

Start with realistic pricing rather than setting an unusually high rate based on the most expensive listing you can find. After receiving inquiries or bookings, you can adjust your pricing and availability based on actual demand.

Most importantly, keep track of income and expenses from the beginning. You'll want to know whether the rental is generating worthwhile returns, not simply whether money is coming in.

Is Renting Out Unused Space Worth It?

Renting out unused space can be a practical way to earn additional income without building an entirely new business from scratch. You may already have a spare room, driveway, garage, garden, or backyard that someone else could put to good use. With the right location and rental arrangement, those spaces can become modest but useful sources of income.

That doesn't mean every unused space should be rented. Some opportunities require more work than they're worth, while others introduce privacy, safety, or insurance concerns that may outweigh the potential earnings. A successful arrangement should make financial sense without creating unnecessary problems for your household.

If you'd rather use the property to operate your own business instead of renting it to other people, read our related PowerHomeBiz guide, 5 Ways to Turn Unused Space Into a Profitable Business. It covers workshops, e-commerce fulfillment, home offices, and other business ideas that make use of existing buildings.

For rental income, begin by finding out what people in your area need, make sure the property is suitable, and run the numbers before investing. You may discover that the quietest corner of your property has the potential to become a welcome source of extra income.

Frequently Asked Questions