A second home can either be a liability or an opportunity depending on how you use it. If you’re fortunate enough to own another property aside from your primary residence, know that there are many ways to earn some passive income out of it. 

Owning a property can cost a lot of money. Property taxes, mortgage payments, utility bills, maintenance and repair costs, etc., can cause you to spend a big part of your annual income on your property. Your expenses can even become more pronounced if you have a second home. 

Fortunately, there are several ways to make your second home generate a good amount of passive income which you can then use to finance it or use it for other forms of investments.

1. Rent It Out as a Vacation Home

One of the best ways to earn passive income from a second home is to have it rented out as a vacation home. You can get help from a vacation rental property exchange to get the most out of your second home. 

There are also apps like Airbnb property management and booking, making it easier for homeowners to find guests for their second home. 

2. Rent It Out for Storage

If you don’t want to trouble yourself with tenants but still want to earn passive income off your second home, why not rent it out as a storage space. 

Many people have plenty of extra or unused items that they no longer have space in their homes to store appropriately. Instead of renting out a storage unit, ask them if they want to keep their belongings in your second home for better access and a cheaper rental rate. 

3. Use It as a Venue to Hold Events

If your second home is big enough to hold events such as parties, weddings, or seminars, you can have it listed as a possible venue or location for different kinds of events. 

You don’t need to hold big concerts or music festivals (although you can do it if your property is big enough to keep these kinds of events). Many homeowners who have a second residence make a steady profit from having their property rented out to hold events.

Barns, farms, ranches, and colonial houses are famous these days amongst people who are looking for a good place to host special events or occasions.

4. Turn It into a Dormitory

Is your second home near a university or a local college? If so, then you have a significant opportunity to earn some big bucks from it. 

Although turning your second home into a dormitory may you need to put some a substantial amount of capital for renovations to make it habitable for multiple residents, it’s still an excellent money-making opportunity for you. Your capital won’t end up going to waste as the number college or university students looking for a place to rent is huge.

However, renting out your second home as a dormitory always come with a risk, so make sure that your property has insurance before opening your doors to students. 

5. Run a Bed & Breakfast Service

If your second home has plenty of rooms, you can turn it into a bed and breakfast service. A bed and breakfast service is a good money-maker, especially if you have what it takes to host this kind of business.

Being able to rent out a couple of rooms in your second home on a nightly or weekly basis is a lot more lucrative than having your property being rented by the month. 

Operating this kind of service will require you to have more hosts than simply renting out a room. Not to mention that merely providing breakfast is just the start. Be sure to do your research to learn how to start and operate a bed and breakfast business before going down that road. 

6. Grow Some Things

If your second home has a big yard, you can use it to grow some fruit, vegetables, or flowers that you can sell. This is even more lucrative if your second home is located along the side of a road as you’ll be able to sell your product directly to travelers on the road.

With the global pandemic today and the number of people becoming more concerned about their safety when going to supermarkets, the demand for fresh, local food is burgeoning. 

So, if you have a second property, why not try planting some things that you can grow and sell to earn money. 

Conclusion

If you want to earn passive income off your second home, it’s important to note that you never take on more than you can handle. Remodels and renovations can be very costly, and not everyone is cut out to be a host for a bed and breakfast service. 

Your second home can bring some serious money into your pockets if appropriately utilized. You can then use the money to pay off your mortgage or invest in another property. Turning your second home into a money-maker is a good way of maximizing your real estate properties.