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Are you interested in using your second home as a source of reliable income? There are plenty of ways to do it – all it takes is a little research.
Understanding the real estate market in your area is a productive first step. For example, mortgage rates in Georgia are attractive right now, but they always fluctuate.
You’ll also need to consider laws, restrictions, and the type of lifestyle you want. As one of the top mortgage lenders in Georgia, we understand the ins and outs of property investing and can get you on the right path.
To help you out, here are seven ways to use a second home for supplemental income.
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#7 Make It a Rental
Home renting has been on a steady rise for years. As of 2022, there were over 44 million renter-occupied homes in the US.
If you’re ready to buy a second home in Georgia, this is a great opportunity to meet the rental market demand. Renting your property will create a stream of income that offsets homeownership costs.
However, you’ll want to consider some of the challenges of using your second home as a rental property before you dive in.
- Screening Tenants – Run background checks to ensure you’re renting to trusted tenants.
- Maintenance – As a landlord, you’re responsible for making repairs and keeping the property in good shape.
- Legal Compliance – Understand landlord/tenant laws to ensure you’re in compliance with tenant rights.
- Turnover & Vacancy – If a tenant moves out, find a new one quickly so you don’t lose money while your home is vacant.
If these challenges don’t align with your lifestyle, consider working with a property management company that will take care of the maintenance and administrative duties.
See what your rates are. Start Here! (Apr 28th, 2024)#6 Lease It to a Business
If you feel your second home would make a good environment for a business, consider a commercial lease. Renting to a business has attractive benefits like the ability to charge higher rent and lower risk of tenant non-payment.
Before going down this path, it’s important to understand the difference between leasing to a business and an individual.
A few things to consider:
- A Commercial Lease – These agreements differ from residential tenant contracts. Terms should include acceptable use of your home, how wear and tear is handled, security, and acceptable business operations.
- Permits – Ensure the business obtains the appropriate permits for its operation.
- Zoning – Review your city’s zoning laws. There may be restrictions on certain business operations where your second home is located.
- Insurance – Make sure your business tenants carry commercial insurance coverage.
If you don’t own a second home and want to get into commercial leasing, work with our experienced mortgage lenders in Georgia and start exploring your options.
#5 Flip It
House flipping has been all the rage for years, and there’s a reason. The average profit on flipped homes is $56,000.
Flipping a home involves buying property at a low price, renovating, and selling it at a higher price. This is a great way to make a lump sum relatively quickly.
Other advantages of flipping a home in Georgia include:
- Housing in the state is in high demand.
- There are tax incentives for real estate investors.
- Low housing prices make finding affordable property easier.
If you enjoy home renovation and are looking for a way to make extra money while diversifying your investment portfolio, flipping a home is a great move. As top mortgage lenders in Georgia, we can help you get started with a loan that suits your situation.
How much home can you afford. Start Here! (Apr 28th, 2024)#4 Turn It Into an Airbnb
Hotels are no longer the standard for vacationers or business travelers. Airbnb is now the go-to for many people. The online marketplace allows users to find short-term lodgings and homeowners to make money by renting their property.
Turning a second home into an Airbnb is an easy way to generate income while maintaining flexibility and control. You get to set the dates your home is available to rent so you can use it whenever you like. If your property has a guest house, you can rent it out while keeping the remaining space for personal use.
And while the process is straightforward, there are a few challenges you need to consider. Your homeowner’s insurer may require additional coverage for using your home as an Airbnb. You’ll also need to stay on top of your rental schedule and clean thoroughly between guests.
Get your custom rates. Start Here! (Apr 28th, 2024)#3 Rent to Filmmakers as a Shooting Location
It may sound like a strange idea, but renting your home as a movie location is more common than you think. Georgia is a hotspot for filmmaking, so you’re in the right place.
Here’s a breakdown of the process:
- Make sure your home is in good shape, clean, and well-furnished.
- Take professional photos of your home.
- Advertise on platforms like LocationsHub or contact a local film location agency.
- Set a rental price based on the market rates in your area.
- Once interested filmmakers contact you, discuss the terms and create a contract.
A major benefit of renting your second home to a filmmaker is the compensation you can receive. Depending on the location, budget of the film, and size of your home, you could make serious cash. It’s also a great way to network and maybe even see your home in future movies.
#2 Run a Bed and Breakfast (BnB)
Embark on a new business venture by turning a second home into a traditional BnB. They can be very lucrative and offer you an opportunity to create a memorable experience for travelers.
Bed and Breakfasts provide guests with room accommodations and breakfast served in a communal dining room. They’re more quaint and personalized than hotels.
Benefits of operating a BnB include:
- A chance to get creative with decor and interior design
- Meeting new people and forming long-term connections
- Steady income
- Being your own boss and working from home
- Becoming part of the business community and supporting the local economy
But running a BnB doesn’t come without challenges. You may need to make an initial investment to renovate and decorate your home. It’s also important to market your BnB to ensure steady business.
Ready to purchase a second home and start a BnB? As trusted mortgage lenders in Georgia, we can help you get started.
Real rates in less than a minute. Start Here! (Apr 28th, 2024)#1 Special Events Hosting
This is your chance to let others create memories in your beautiful second home. Renting it for special events like weddings, parties, or corporate functions is a smart way to earn supplemental income when you’re not using the home.
If your property is spacious and includes amenities like a pool, gazebo, and an entertainment system, you can charge more — set rates based on the type of event, attendance numbers, and duration.
A few challenges you’ll have to navigate include noise concerns, damages, and local zoning regulations. You’ll need to set terms with each client and create a contract that outlines the details and obligations. It’s also important to have specialized insurance to protect yourself from liabilities.
Guidance from One of the Best Mortgage Lenders in Georgia
Finding the perfect second home is the first step toward creating an additional source of income and building equity. Start by scouting for homes in your desired communities and researching the local real estate market.
When you’re ready, set yourself up for success by working with our mortgage lenders in Georgia. Our team is ready to help you secure the home of your dreams.