Your wardrobe isn’t the only thing that deserves a bit of a spring upgrade. With the start of a new season just a few days away, now is the perfect time to switch up your home decor to reflect the changing weather and embrace all the airy spring vibes. Adding pops of color, fresh scents, lightweight linens, and fresh flowers are always on our spring to-do list, but this year, we tapped some of our favorite interior designers to find out their go-to spring home updates. If you too are ready to refresh your home for the season, adding another throw pillow to your living room and a spring wreath to your front door is just the beginning. Here are all the spring decor ideas designers are using to update their homes this season.
1. Freshen up your bathroom
The bathroom may not be your first thought when it comes to sprucing up your home for spring, but making a few swaps in this area can really make an impact. Infuse some spring energy into your bathroom with a new shower curtain, bathmat, or towels in fun colors or patterns. These simple upgrades will have you looking forward to your nightly skincare routine, just so you can appreciate how cute your bathroom is.
Anthropologie
2 colors available
Anthropolgie
7 colors available
3 colors available
2. Display your produce
Channel your inner Dakota Johnson and turn your fruit into decor by displaying it in a stylish bowl. Not only is this a practical method of storing produce, but it’s also an easy and affordable way to add a pop of color to your kitchen. Display the bowl on your kitchen counter or dining table for a simple centerpiece that takes seconds to put together.
Anthropologie
2 colors available
Pottery Barn
3. Swap out your art
One of the easiest ways to freshen up your decor is by swapping your artwork—whether it’s within your gallery wall, on your kitchen counter, above your mantel, or on your side table. Studio McGee styles art so well each season, so we always look to them for inspiration for how to style artwork throughout the year. For example, if you currently have dark, moody landscape art on your entryway table, swap it with a print that includes pastel colors throughout instead. Easy changes like this can take your home from muted winter vibes to bright and fresh spring vibes in no time.
Threshold x Studio McGee
Threshold x Studio McGee
Etsy | MellowPrintDesigns
Etsy | HeirloomLaneCo
4. Change up your candle scents
Whether you keep a candle lit during your daily Zoom calls or always light a favorite fragrance as you wind down for the evening, why not switch up your scents in honor of the new season? Designer Adnan Anwar, who swears by this practice, shared a few of his favorite candle picks for spring. “I tend to switch out the musky, cedary, leathery scents for lighter and more herbal ones,” he said. “I especially love garden mint candles.”
Designer Leah Phillips agreed. “I switch out those earthy candles for ones that are more floral and bright. I have one called Urban Flower Market that is truly spring in a bottle.”
Anthropologie
Pottery Barn
5. Switch your table linens and accents
It doesn’t matter if you live solo or share a dining space with four roommates—your kitchen table deserves a little seasonal love! “I’m someone who gets an irrational amount of joy from setting the table for dinner,” designer Emma Beryl said. “Even if I’m just ordering a pizza, I really enjoy using nice glassware, napkins, and silverware because it makes the end of the day a little more celebratory.”
When spring arrives, Beryl grabs delicate glassware and linen napkins in bright colors from her cabinets. She added, “I especially love to use all shades of blue and green in the spring because it relates to the outdoors and the generally verdant feeling of the season.”
5 colors available
2 colors available
Crate & Barrel
5 colors available
Hearth & Hand with Magnolia
6. Add airy touches
Want to embrace light and airy living room ideas? Tuck those flannel blankets into storage and embrace lighter accents. For designer Danielle Muzynoski, that means giving her space a once-over and opting for timeless home decor that brings airy touches all around. “I’ll switch my dark, heavy pottery for a hand-blown glass vase, for example,” Muzynoski shared. “Pillows and blankets will be changed to lighter colors and linen textures.”
Brooklinen
3 colors available
2 colors available
Hearth & Hand with Magnolia
7. Opt for spring-like bed linens
Your winter sheets kept you warm and cozy during the chillier months, but now that spring is here, away they go! “One of the best ways to update your home each season is fresh linens in the bedroom,” designer Kathleen Walsh shared. “I have sets for fall and winter as well as spring and summer. They keep my room interesting and help me transition into a seasonal mindset.”
If you usually gravitate toward neutral color schemes and paint colors in your home, a subtle touch of color peeking out of your bedding can bring a happy, fresh feeling to your room without it being too much of a contrast. Opt for sheets in shades of light pink, blue, yellow, and green.
Brooklinen
10+ colors available
10+ colors available
Threshold with Studio McGee
8. Incorporate florals
Florals for spring? Groundbreaking (we had to). But seriously, there’s a reason why vases full of fresh flowers are a must for designers. “Adding fresh, colorful flowers like tulips or hydrangeas in the primary rooms of my home makes it smell and look like spring,” designer Whitney Durham said.
Designer Charli Hantman, on the other hand, is partial to emerald green hydrangeas and anemones. “There is something about how delicate they are that makes me forget the cold winter weather and start dreaming of summer,” she said.
But don’t worry—there’s no need to spend a ton of money during this beautification process. “You can really have fun and get creative with the different colors and varieties of flowers offered at your local deli or supermarket,” designer Jennifer Hunter noted. “No need to get too fancy here!”
9. Update your vases
While you’re thinking about flowers, you may want to take this opportunity to update your vase collection. Designer Kate Jacobowitz likes to display her fresh flowers in new vases and vessels that she picks up online. “Etsy is such a good source for fun, quirky pottery,” she said. “I love pieces with unusual shapes and color combinations grouped together; they are even interesting enough to stand on their own on days when fresh flowers just aren’t in the cards!”
Anthropologie
Threshold with Studio McGee
Threshold with Studio McGee
Etsy | SunnysShopLA
10. Lean into plants
If you’re more of a plant person, bring on all the green friends this spring! “I’m always looking for ways to incorporate more indoor plants around the house,” designer Leah Walder noted. “I’m using them as centerpieces, in my bookshelves, and in baskets by the entryway. It really makes our home feel more alive and ready for spring!” Whether you opt for live plants or realistic faux options, the fresh impact can’t be denied.
Pottery Barn
Hearth & Hand with Magnolia
Threshold x Studio McGee
11. Change out your coffee table books
Don’t forget to give your coffee table a springtime refresh, too. “I always change out my coffee table books,” said designer Muzynoski. “So while I had all neutrals out for winter, I might pick out some fun colored covers like pinks and greens for spring.” Not only will these books work as spring living room decor, but they’ll also give you and your guests something pretty to peruse while hanging out on the sofa.
Julie Pointer Adams
Anita Yokota
12. Shop your own home
Home design trends make us want to redo our homes constantly, but TBH, you don’t need to purchase a single item in order to transform your space for any season, including spring. Designer Ann Flanagan shared a tried-and-true trick that will help add some oomph to your home without breaking the bank. When it’s time for a refresh, Flanagan will sort through a bin of home decor she keeps in her basement. “This bin is full of items I love, but not everything I love always has a place,” she explained. “I play around by swapping in pieces and others out. Since I don’t subscribe to trends, most items are classic, and that way, my space feels new without having to go shopping.”
Looking for a real estate side hustle? Whether you are looking for passive income ideas or if you are looking for a part-time job (or more!), there are many different real estate side hustles. I have done a few different real estate side gigs, and I know many people who have side hustles in this…
Looking for a real estate side hustle?
Whether you are looking for passive income ideas or if you are looking for a part-time job (or more!), there are many different real estate side hustles.
I have done a few different real estate side gigs, and I know many people who have side hustles in this area as well. To get started in real estate, you don’t have to spend a lot of money – there are several real estate side gigs that can be started even if you are brand new or are on a budget.
Key Takeaways
Real estate side hustles have a range of options from income generating assets to freelance opportunities to office jobs.
You can supplement your income with both short-term and long-term real estate strategies.
Finding the right fit depends on your availability, investment capacity, and financial goals.
Best Real Estate Side Hustles
Here’s a quick summary of some of the different best real estate side hustles:
House hacking: Buy a property, live in one unit, and rent out the rest.
REIT investing: An easy way to start investing in real estate with less capital.
Airbnb rentals: Rent out a spare room or an entire property on a short-term basis.
Property management: If you’re organized and good with people, managing properties for others could be a perfect fit.
Long-term rentals: Becoming a landlord can generate steady cash flow.
Fix and flip: Buy properties that need work, renovate them, and sell them for a profit.
Below, you will read the full list and learn more about each one.
1. House flipping
Flipping houses can be a good real estate side hustle if you like real estate and enjoy fixing things up.
When you flip houses, you’re basically buying homes, making them better with repairs and upgrades, and then selling them to make more money.
The first thing to do for a successful house flip is to find a property that can be made better, such as by looking for homes in neighborhoods that are getting better or have room to grow. Think about things like where it is, what the market is like, and the condition of the property.
Before putting money into anything, it’s important to carefully look at the finances. You’ll want to figure out how much it will cost to buy, fix, and keep the property, and think about things like the cost of materials, paying workers, getting a loan, and the costs while you’re fixing things.
To flip a house well, you need to make smart changes that make the property better, without spending too much, by concentrating on important areas like the kitchen and bathrooms, and fixing any big problems with the structure or safety.
Recommended reading: 10 Best Books on Flipping Houses To Make Money
2. Investing in REITs
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate. They are a way for you to invest in real estate without directly managing or owning properties.
An REIT is like a company that owns and takes care of real estate that makes money. They sell shares of this company to people, kind of like how stocks work.
When you invest in REITs, you can earn money from the real estate world without actually owning any property. So, if you don’t want to deal with being a landlord, this could be a good option. It’s way less work than owning property and handling it yourself.
You can even spread out your money and invest in different kinds of properties with REITs, like houses, offices, factories, and stores.
3. Getting a roommate
Getting a roommate in your home, whether that be a full-time roommate or renting out an extra room in your home short-term on Airbnb, can be a great real estate side hustle that doesn’t require very much work from you.
The earnings you can make from having a roommate depend on things like:
Where your home is (an expensive area? rural?)
The space you are renting to a roommate (for example, do they get their own bathroom? private entrance available?)
To find a roommate, you can share about it on your own Facebook page, put up an ad on sites like Craigslist, or make a rental listing on Airbnb. There are lots of places where you can let people know you’re looking for a roommate.
I have had many roommates in the past when I was younger and had a home with spare bedrooms. I would rent them out to long-term renters and people that we personally knew (such as friends and my sister).
Recommended reading: Tips For Renting A Room In Your House.
4. Airbnbs and vacation rentals
Turning your property into an Airbnb or other short-term rental can be a way to generate extra income. This is when you rent out your space, whether a full house, an apartment, or just a room, to travelers for short stays.
Before starting your Airbnb side hustle, be sure to:
Check local laws: Make sure short-term rentals are permitted in your area. There are many areas nowadays that are more strict when it comes to short-term rentals.
Understand the financials: Calculate potential earnings against expenses like mortgage, utilities, and maintenance.
Set up your space: Furnish and decorate to create a welcoming environment.
Market your rental: Use high-quality photos and create listings on rental platforms like Airbnb and Vrbo.
The amount you can earn can vary, with some hosts making around $5,000 to $10,000 a month or more, but this depends on factors such as location, rental type, and occupancy rates. Always plan for occupancy ebbs and flows – it’s part of the short-term rental business.
5. Real estate photography
If you’ve ever looked at a house listing and thought that the pictures looked awful, then this may be the real estate side hustle for you.
Real estate agents many times hire out for the photography side of selling a house, as they know and understand how important good pictures are.
Real estate photography is all about taking pictures of houses and spaces to grab the attention of people who might want to buy them. Real estate photographers might take pictures of the outside of a house, the backyard, the living room, attic, bathroom, and more.
You can start with the equipment you likely already have, like your smartphone, which can work well because phones these days have great cameras.
How you show a property can really impact a client’s chance of selling it. Your photos are not just pictures; they’re an important part of how the property gets advertised.
As you continue with this real estate side hustle, you might think about getting better equipment (like a real camera!), but for now, practice paying attention to details and getting better at taking pictures.
If you’re thinking about doing something extra to earn money in real estate, photography could be a great choice.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
6. Real estate drone photography
Drone pilots sell real estate photography services to help real estate agents showcase the properties they are selling.
When property listings include pictures from various angles and heights, it gives a different perspective compared to regular photos. This helps show aspects of real estate that traditional pictures might miss.
When you sell property photography services using your drone, you’re providing a valuable service to real estate companies that want to stand out in a crowded housing market.
Homes are increasingly being sold using drone photos, and it’s understandable because they can showcase the surroundings of a home. Also, potential home buyers can see the entire property and house through a drone picture, giving them a better understanding of what the home includes.
Recommended reading: How To Make Money With A Drone
7. Long-term rentals
A long-term rental is when you rent out a property for a long amount of time, usually six months to a year or even longer. An example would be renting out an apartment or house to a family to live in full-time.
Long-term rentals are different from short-term rentals like vacation homes or Airbnb listings. They are meant for people or families looking for a longer place to live.
A benefit of long-term rentals is the reliable and steady income they can give you. When you rent your property to tenants for an extended period, you set up a regular cash flow of rental payments. This stability can be especially nice for people who are looking for a dependable source of passive income.
Plus, it’s usually less work than a short-term rental, because you don’t have to clean the home every few days or find new people to rent out to.
Recommended reading: How This 34 Year Old Owns 7 Rental Homes
8. Buy and hold for long-term wealth
If you want to grow wealth through real estate, the buy-and-hold strategy is a way to achieve lasting growth. This means buying a property and keeping it for an extended period, benefiting from both its increasing value over time and the rental income it makes you over the years.
Some positives to think about with a buy-and-hold real estate side hustle include:
Appreciation: Over time, real estate often increases in value.
Rental income: It can provide a steady cash flow each month.
Tax advantages: Possible deductions can reduce your taxable income.
The buy-and-hold strategy requires patience and a willingness to handle market changes. It’s a long-term approach, not a quick one, but if you stay persistent, you can create an investment portfolio for future financial stability.
9. Notary services for real estate
If you want to get more into the real estate world without becoming an agent or broker, becoming a notary public can be a way to make extra money.
Many documents, including deeds, mortgages, and power of attorney, require notarization to be legally binding.
With a notarization license, you can provide an important service required for different real estate transactions.
Notaries are important because they help make sure that the people signing documents are who they claim to be to prevent fraud.
10. Rental arbitrage
Rental arbitrage is a way to make extra money in real estate without owning a property. You rent a place for a long time and then sublease it as a short-term rental using platforms like Airbnb.
Here’s how to get started:
Check local laws: You’ll want to make sure your city or state allows for short-term rentals.
Make sure the rental allows for you to do this: Not every rental will be okay with you renting it out. You will want to read your rental contract carefully.
Do market research: Understand the demand for short-term rentals in your target area, such as by looking for locations with high tourist traffic or business conferences.
Potential Benefits
Considerations
+ Strong cash flow potential
– Initial setup and furnishing cost
+ Low startup costs compared to buying
– Dependence on short-term rental market stability
Making money in rental arbitrage comes from the difference between the cost of the long-term lease and the income from short-term rentals. The bigger the gap, the more potential for profit. But remember to factor in the expenses of running the rentals, like cleaning and maintenance costs.
11. House hacking
House hacking is a strategic approach to real estate where you purchase a property with multiple units and live in one unit while renting out the others. This is a side hustle because it can help offset your living expenses through the rental income.
House hacking can be an easy starting point if you want to dip your toes into real estate investing with the added perk of reducing your personal living expenses.
Back when we were living in a traditional house, we house hacked for a little while and had a few different roommates live with us. The monthly rent we collected allowed us to lower our house payments and put more money in savings.
We house hacked with our first house, and it was really great for us. Being able to set more money aside even helped me get ready to quit my job to become a full-time blogger.
If you are looking for a good book on the subject of house hacking, then I recommend reading The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom by Craig Curelop.
Recommended reading: What Is House Hacking & How To Live For Free
12. Real estate agent
A real estate agent is a person who helps people, like you and me, find real estate to buy or sell. They usually earn their income through a commission, which is a percentage of the property’s sale price.
To become a real estate agent and start this real estate career, you only need a high school diploma and a professional license. As of 2021, the median pay, according to the U.S. Bureau of Labor Statistics, is $23.45 per hour, or $48,770 per year.
And, there are tons of real estate agents who make a lot more money than this.
13. Crowdfunding and peer-to-peer lending
If you want to learn how to make extra money in real estate, then crowdfunding and peer-to-peer lending are areas to look into.
Crowdfunding platforms allow you to invest in real estate deals with a smaller amount of money compared to purchasing property outright. This can provide you with passive income through rental returns or potential property value appreciation.
Peer-to-peer lending platforms enable you to lend money directly to borrowers. You can potentially earn higher returns compared to traditional savings accounts, but there is always the risk of a borrower not repaying the loan.
Both crowdfunding and peer-to-peer lending utilize technology to connect investors with individuals seeking funding.
14. Bird dogging
Bird dogging in real estate can be a side hustle where you help find potentially profitable properties for investors. Your skill in spotting undervalued or distressed properties is important.
Here’s what you usually need to do:
Conduct market research to locate properties that are flying under the radar.
Build a network with local real estate investors who are looking for deals.
Learn to use the Multiple Listing Service (MLS) to spot opportunities.
Typically, you’ll be on the lookout for foreclosures, bank-owned properties, and distressed homes due for a quick sale.
As a bird dog, your compensation usually comes from a referral fee after the investor decides to move forward with your find. Importantly, to perform this role, you don’t necessarily need any initial capital, just the time and skill to identify promising investment opportunities.
15. General contractor
General contractors handle the day-to-day activities on construction sites, overseeing tasks from residential remodels to constructing new homes.
This is typically more of a full-time job, but this can sometimes be done as a real estate side hustle.
As a general contractor, you can choose projects that match your schedule and interests, providing flexibility. Despite the responsibilities, this role allows you to play a central role in turning plans into actual buildings, giving you the potential to make extra money.
16. Flip raw land
Getting involved in raw land flipping is when a person finds and buys undeveloped land to sell later at a profit.
The main benefits include a lower initial investment and less complexity compared to traditional real estate investments, as it doesn’t involve renovation or improvements. There are no buildings, instead it may be a lot or acres of land.
Here’s a step-by-step guide on how to start:
Find raw land – Research areas with potential growth or upcoming developments that could boost land value.
Due diligence – Perform thorough checks on land titles, zoning laws, and road access to avoid legal issues.
Pricing strategy – Your selling price should be attractive enough for buyers yet ensure you make a reasonable profit margin.
Sell and negotiate – Use online platforms to reach potential buyers and negotiate the best deal.
17. Rent out your storage space
If you have unused land or space in your home, renting it out for storage space can be an easy way to make passive income.
People have a lot of stuff, and they will pay you to store their stuff in your unused spaces.
You can sell storage solutions for vehicles, boats, personal belongings, and more. You can rent out your parking space, closet, basement, attic storage, and more.
A site where you can list your storage space is called Neighbor and you can earn $100 to $400+ each month. This depends on the demand in your area and the type of storage space you are renting out.
Recommended reading: Neighbor Review: Make Money Renting Your Storage Space
18. Property manager
A property manager side hustle can be a great way to make extra money.
A property manager is a real estate professional who finds and oversees tenants, collects rent, and handles repairs and maintenance activities. It’s a side hustle that property owners pay for because they may not have the time or skills to effectively manage their own property.
Property managers can manage long-term rentals like apartments, short-term rentals like Airbnbs, and even commercial spaces as well.
I have a friend who is a property manager on the side of his full-time construction job – he manages many different types of properties, from second homes to vacation rentals to someone simply being out of town. He checks on their properties to make sure that everything is running smoothly.
19. Home stager
If you’re passionate about real estate and design, starting a side hustle as a home stager could be profitable for you. As a home stager, your job is to improve the appearance of a home before it’s listed for sale.
This often results in faster sales and higher prices, making your service valuable to sellers.
You can start by staging homes for friends or family, if possible, to build a portfolio. Before and after photos are powerful tools to showcase your work.
You can even provide consultations to homeowners who prefer to do the actual staging themselves. In such cases, your design style can be a more budget-friendly option for a do-it-yourself homeowner.
20. Home inspector
We recently bought a house, and our home inspector was actually a home inspector on the side – this was his real estate side hustle! I think he was a city inspector (or something similar) full-time, so he was very knowledgeable in the area.
Home inspection as a side job can be a strategic move if you’re interested in real estate. This job allows for flexibility since you can set your hours, such as by completing home inspections on the weekends or before or after your day job.
You’ll need to invest in proper training and get licensed, which is a process that can be completed relatively quickly.
The responsibilities of a home inspector include:
Inspecting homes for possible problems, like a leak or bad wiring.
Creating and delivering reports based on what you find during the inspection.
21. Real estate appraiser
Real estate appraisers determine the fair market value of a property, and this process is important in transactions, such as home sales and refinances.
Appraisers assess property values by taking notes on unique characteristics and comparing them with similar properties that have sold recently.
They then prepare reports, detailing findings and providing a valuation that banks and other institutions depend on for loans.
22. Real estate wholesaler
Real estate wholesalers are middlemen who find properties under market value, contract them with the seller, and then sell the contract to a buyer, often an investor. Their profit comes from the difference between the contracted price with the seller and the amount the buyer pays.
Here is a quick summary of what a wholesale real estate side hustle is:
Find a distressed property – Search for properties that can be bought below market value.
Evaluate the property – Determine the After Repair Value (ARV) and estimate repair costs.
Secure under contract – Enter into a contract with the seller, giving you the right to purchase.
Find a buyer – Locate an investor interested in buying the contract.
Assign the contract – Transfer your purchasing rights to the investor for a fee.
By becoming skilled at finding good deals and building connections with trustworthy investors, real estate wholesaling can become a profitable real estate side hustle.
23. Start a real estate blog
Starting a real estate blog (or even a real estate YouTube channel or social media account!) can be a good way to make extra money without having to spend a lot of money.
With a real estate blog, you can write about local market insights, home buying and home selling tips, property investment strategies, home improvement and DIY projects, and more.
I have been a blogger for years, and I really love it. I am able to create my own schedule, decide how I make money online, travel whenever I want, and more. And, it all started on the side of my day job – so I definitely think that a real estate blog can be started as a side hustle.
Learn more at How To Start A Blog FREE Course.
Frequently Asked Questions
Below are answers to common questions about real estate side hustles.
Can real estate be a side hustle? Is real estate a good side hustle?
Yes, real estate can be a lucrative side hustle. Many people do real estate activities on a part-time basis, which can include short-term rentals, getting a roommate, and more, with lower time commitments.
Is real estate worth it as a side hustle?
Real estate as a side hustle can be worth it if you are looking for more income streams and have an interest in the housing market or real estate. As you probably noticed above, there are many different kinds of side hustles, so the amount of money you can earn or the amount of time you will spend will just depend on the gig you choose.
How can realtors make extra money?
Realtors can make extra money by managing rental properties, taking part in real estate crowdfunding, selling real estate photography services, and more.
Is real estate a good side hustle for teachers?
Yes, real estate can be a good side hustle for teachers. There are many options that may work for a teacher.
For example, some teachers work as real estate agents on the side. This is possible because you can handle listing and selling homes during weekends, breaks, evenings, and over the summer. However, keep in mind that selling homes might pose challenges, as clients may require your full attention during the day, which could clash with your teaching commitments.
You can find more ideas at 36 Best Side Jobs for Teachers To Make Extra Money.
Which licenses might be required to pursue a side hustle in the real estate field?
Depending on the side hustle, certain licenses like a real estate license may be required. For example, to become a real estate agent or home inspector, you’ll need a specific license. However, if you’re looking into just getting a roommate, then you may not need a license. It all just depends on the real estate side gig you are interested in.
How to make money in real estate without ever buying any property?
As you learned above, you don’t need to personally buy or own real estate in order to make money in real estate. You can invest in REITs, become a notary for real estate transactions, include affiliate marketing for real estate products on a blog, and more.
Real Estate Side Hustles – Summary
I hope you enjoyed this article about real estate side hustles.
Picking the right side hustle gig in real estate might feel overwhelming because there are many choices.
Some people might like jobs where you have to do more, like fixing up houses or taking care of Airbnb rentals. Others might prefer making money without doing much, like through REITs or renting out a spare room.
Whatever you’re into or however much money you have to invest, there are probably real estate side business ideas that fit with what you have and what you want to achieve.
What do you think is the best real estate side hustle?
If you know you can’t commit to a full year, subletting a room or living in a short-term apartment might be your best option.
Never subleased an apartment before? We’ll break it down for you!
What does it mean to sublet an apartment?
The legal definition of subletting is leasing or renting a part, or all, of your lease or rented property, to another person called a subtenant. Subtenants have responsibilities to both the tenant and the landlord, but the tenant is still responsible for paying rent to the landlord and for any damage done to the property.
In simpler words, a sublet, or sublease, is when the original tenant transfers the lease to a subtenant for the remaining duration of the lease period — typically less than a year.
While it varies case-by-case, it typically involves a lease transfer fee and does not require the full move-in costs that one-year leases usually have. Therefore, subletting a room or apartment is a great option if you value affordability and flexibility.
Who is involved when subleasing?
Landlord: The owner of the townhouse/apartment. They receive rent on a monthly basis from the tenants.
Tenant/Sublessor: The renter who signs the lease must pay monthly rent to become a resident of the apartment. The contract period is usually one year.
Subtenant/Sublessee: The person who may live in said townhouse/apartment and commits to paying the rent for their period of stay. However, they’re not officially on the lease. Their point of contact is the tenant (the person obligated to pay the landlord).
What are the legal and financial responsibilities?
Every lease differs, so you first need to figure out if it’s even allowed. If you’re the tenant, read your contract again to ensure that your landlord allows subletting. If you’re the subtenant, ensure that tenant is following the proper procedure.
Regardless of what the lease outlines, it’s a requirement to talk to your landlord about the fact that you want to sublease. If they allow it, they’ll inform you of the procedure that you must follow — it could involve either a transfer of lease and/or a subletting fee.
Alternatively, the landlord may not permit it at all. Tenants/subtenants must adhere to the decision of the landlord or they hold the right to sue/evict or charge hefty fines to both the tenant and the subtenant from the apartment.
Subleasing often involves a fee for processing the addition of the subtenant on the lease agreement. In case there is a lease transfer, there may be penalty fees for breaking the lease. The landlord may request a security deposit from the subtenant, as well. In certain rare cases, there is no fee.
Read the fine print in your subletting contract: Length of stay, utilities, rent amount, parking fees. These are important factors that all parties must agree on. It’s in all parties’ best interests to sign a sublease contract to make sure you’re protected and have the rules for both parties in writing.
Make sure you know what type of sublet you’re agreeing to
There are two main forms of subletting.
Both the sublessor and sublessee are jointly responsible for the apartment and all associated costs.
The original tenant is fully responsible for the lease and is thus responsible for complying with all rules and regulations. The original tenant is liable for any damages and missed payments on behalf of the sublessee.
Read more on the regulations here.
Benefits of subletting a room or an apartment
A sublet isn’t as much of a commitment. Now more than ever, signing on to a one-year lease is something to think twice about. Sublets are much more lenient, and allow you the flexibility during these unpredictable times.
Another pro is that sublets are much more affordable. People looking to transfer their lease will sometimes negotiate on rent. Even a small amount can certainly add up, making a large difference in your overall cost.
And finally, people seeking subletters typically leave their apartments completely furnished, or offer to sell their furniture at a discount. Not only will this save you money, but it also makes all the difference when you’re trying to move in furniture up a few flights of stairs. Definitely a huge perk of subletting!
Benefits of finding someone to sublet your apartment
You don’t have to break your contract. In most cases, breaking a lease is not an option. If you’re committed to a lease, then finding someone to sublet your apartment means you don’t throw money away. Nobody wants to pay for an apartment they aren’t living in.
Another perk is the ability to leave your apartment for a few months, but still move back in eventually. With subletting, you don’t need to give up your apartment.
And by subletting, you don’t need to urgently leave the apartment and pack up your entire life. We all know how difficult moving is in general, not to mention on short notice.
Drawbacks to subletting a room
While subleasing is a great option for someone looking for short-term housing, there are a few drawbacks to the process.
For the renter, it’s only temporary. If you find a great place to live, you know that you’re going to have to move out eventually. So don’t fall in love with your temporary digs.
For the tenant, there are always risks when having someone come into your place when you’re not there, especially if you have really nice things. Think of it like if you were to Airbnb your apartment, there’s always a chance something could get stolen. Also, if your sublessee bails on you or fails to pay the rent, your landlord will still come after you for that missing payment.
What to keep in mind while searching for sublet?
Make sure a sublet is the best option for your circumstances: Will you live in this apartment for less than a year? Do you want to avoid upfront costs that come with a full-year lease? Do you want flexibility? If you answered yes to these questions, you should definitely consider subleasing an apartment.
Make sure to start early. If you’re seeking a sublet for the spring semester, now’s the perfect time to start. It’s best to give yourself at least two months when starting your apartment search. Oftentimes, people with available apartments start searching for a subletter two months in advance, while others leave it until the last minute. To give yourself ample time to find an apartment that fits your budget, location and lifestyle, start your search early.
And remember, there may be a lot of competition. When you start early, you get in touch with more people looking for a place to sublet. That gives you more choices in terms of who you want to have living in your room. By giving yourself time, you’ll have the opportunity to get to know them. Ask them all the important questions: Background checks? Will they pay on time? Is your landlord OK with it? Will they keep your room clean? Are your roommates OK living with them?
How can I find a short-term rental?
Now more than ever, there are various platforms to use to search for sublets or short-term rentals.
Facebook is great if you want to write a short description of your apartment and post a few pictures for more elaboration. It’s also great for networking due to the sheer volume of people using the platform for the purpose of seeking/subletting an apartment. However, if you’re the one finding a room/apartment, you’re bound to spend hours on your Facebook timeline reading every little detail to find your perfect fit. This happens because, in the post format, the information is not standardized.
If you want an interactive experience, Hoamsy is a Boston-based platform that uniquely allows you to list and find sublets. Once you make a profile, you’ll get personalized leads based on your preferences. Once you find a match, you can directly connect with them through Hoamsy’s direct messaging feature. It’s a great resource for people looking to find sublets.
Apartment rental sites like Apartment Guide and Rent. are good platforms to use if you have a very specific apartment in mind. You can filter your search to show only properties that offer short-term rentals. They also have listings available in most major cities and give you a ton of guidance on all aspects of moving on their blogs.
Enjoy your freedom of subletting a room
It’s always good to have options and flexibility and subletting a room definitely gives you the opportunity to do that. Just much sure you understand the process before you get started, and get permission from your landlord before doing anything!
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Clarissa Garza is a Product Marketing Associate at Hoamsy, a real estate tech platform, where she works on content creation, acquiring new users and copywriting. Clarissa is a student at Boston University with experience in marketing and journalism. Aside from Hoamsy, she is a Statehouse Correspondent at The MetroWest Daily News.
Earning $90,000 a year puts you in a good position to afford a home priced at around $350,000, as long as you don’t already have significant other debts to pay. That’s good news considering the U.S. average home value these days is just above $342,000. But there are many variables in play that could adjust your budget up or down. Let’s examine them to get closer to your personal housing budget number.
What Kind of House Can I Afford With $90K a Year?
Congratulations! At $90,000 a year, your salary is almost $15,000 higher than the American median household income. It makes sense that you’ve set your sights on homeownership. Making $90,000 per year may feel like a lot of money … or not so much, depending on whether you live in an affordable place. The question is less about how much house you can afford than how much you can afford to spend on housing each month.
There’s a basic rule of thumb that you should spend no more than a third of your gross income (i.e., income before taxes) on housing. (Ideally, you’d spend closer to about a quarter.) So someone earning $90,000 per year, can reasonably afford to spend between $22,500 and $29,700 on housing each year — which translates to between $1,875 and $2,475 per month.
That’s a substantial enough chunk of change to cover many mortgage payments. For example, if you took out a home mortgage loan of $310,000 at an interest rate of 7%, your monthly payment might be around $2,060, which falls into your affordable range. (This assumes you make a down payment of $40,000 on a home priced at $350,000.)
However, more factors than your income affect what size loan mortgage lenders will qualify you for — and more factors than the price of the house itself affect whether or not you can afford it. 💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $5,000 credit.‡
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
What is Debt-to-Income Ratio (DTI) — and Why Does It Matter?
Let’s take a second to talk about DTI, or debt-to-income ratio. Your DTI is, as its name suggests, a ratio of how much debt you currently have to how much income you make. It’s calculated by dividing your debts by your gross monthly income, and it’s one of the factors lenders consider when qualifying you for a home loan.
If you’re in a lot of debt — meaning your DTI is higher — it may be harder for you to qualify for a mortgage, no matter how much money you make. Inversely, if your DTI is lower, that’s a favorable mark even if you’re not making huge amounts of money.
Consider how much debt you currently carry before applying for a home loan. If you’re already paying off a car, student loan, credit card balance or all of the above, you may want to work on dialing down your debt; even if you qualify for a mortgage, your interest rate might be higher as a result.
Factoring in Your Down Payment
Along with your DTI and income, mortgage lenders also consider how much money you’re able to pay toward a home up front — otherwise known as your down payment. Although a larger down payment might not significantly shift your monthly payment, it can have an effect on the amount a lender is willing to offer you. (Having a significant amount of money available for a down payment can be a favorable marker for lenders.)
That said, it can take a long time to save up a substantial down payment, even for those earning good income — and you may be sacrificing the opportunity to build equity in the short term if you wait to buy a house.
In any case, remember that responsible homeownership will require a well-set savings habit. (After all, your new home is going to need repairs—and you won’t be able to just call your landlord anymore!)
How to Afford More House With Down Payment Assistance
For many would-be homebuyers — especially first-time homebuyers — the process of saving a downpayment is the single largest obstacle to owning a home. Fortunately, down payment assistance programs offer one way for buyers to give themselves a leg up. Offered through government agencies and nonprofits, down payment assistance programs offer very-low-cost loans or grants that can amplify whatever you’ve already saved up for a down payment.
There are often requirements in order to qualify, such as not out-earning a certain income threshold or having less than a given amount of liquid assets available. Still, these programs can bridge the gap for many first-time buyers trying to leap the down-payment hurdle into homeownership.
Other Factors That Affect Your Ability to Afford a Home
Along with your DTI, the size of your down payment, and the size of the loan you’re hoping to take out, your credit score — and credit history in general — has an impact on your housing budget. Even if you earn good money, a poor credit score may keep you from qualifying for a mortgage, and a score that is fair but not great may push your interest rate higher than it would otherwise be.
Additionally, lenders are interested not only in how much you make, but the stability of your capacity to earn that money. That means they’ll consider not only your job, but how long you’ve had it; most like to see a steady job history of two years. That said, it may still be possible to qualify for a home loan if your job is new to you if you’ve had consistent income over that time, especially if your other markers are favorable.
How to Calculate How Much House You Can Afford
To get the best sense of how much you can afford, consider trying an online mortgage calculator, or home affordability calculator, which will allow you to plug in all of your specific metrics and see how much of a mortgage you’re likely to qualify for (and the size of the associated monthly payment). Keep in mind that your mortgage is just the start. When you buy a house, you’ll also be responsible for any maintenance and upkeep, not to mention property taxes, utility costs, furnishings, and more.
Speaking to a lender is another great way to understand in depth how much house you’re likely to be able to afford based on their algorithm and your specific financial standing. 💡 Quick Tip: A VA loan can make home buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†
Home Affordability Examples
Let’s say you earn $90,000 per year and are interested in buying a house that costs $400,000. You’ve saved up $30,000 for a down payment (7.5% of the purchase price of this home), and you have a credit score of 750.
With interest rates around 7%, as they’ve been lately, your monthly payment for such a home would likely be at or above $3,200—in part because, if your down payment is less than 20%, you’ll need to pay for mortgage insurance, which is an additional monthly cost. That’s substantially more than a third of your gross income at $90,000, so it’s probably not a good idea.
So let’s say you take your $30,000 down payment and look at a significantly cheaper home, perhaps in a significantly cheaper state. This one costs $250,000. In that case, with everything else the same, you’d likely pay less than $2,000 per month, which is a comfortable amount for your income level.
Remember that if your credit score and income trend upward after you purchase a home, and you want to improve your mortgage loan terms, you can always look into a mortgage refinance.
How Your Monthly Payment Affects Your Price Range
As you can see, your monthly payment has a huge effect on the price range of the home you’re comfortably able to afford. Although $90,000 per year may seem like a lot of income (and is, at a national level), it may not translate to being able to afford a very large or costly home.
Types of Home Loans Available to Households with $90,000 in Income
Good news: There are many different types of mortgage loans available to those who earn $90,000. Along with conventional loans from private lenders, you may also be eligible for government-subsidized loans like VA loans, FHA loans, or USDA loans, all of which can lower the qualifying requirements and make the home loan process easier for first-time homebuyers.
The Takeaway
Although $90,000 is a large income, especially for a single person, it doesn’t translate to an unlimited home-buying budget. Aside from income, your credit history, DTI, and available down payment amount also have a significant impact on how much mortgage lenders will be willing to offer you.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Is $90K a good salary for a single person?
A salary of $90,000 is substantially higher than the national median household income, so yes, it’s a good salary for a single person. Exactly how good depends on where you live, as the cost of living varies significantly across the U.S.
What is a comfortable income for a single person?
“Comfortable” is relative! While one person may be comfortable sharing a home with multiple roommates, others might require more space or greater luxuries to feel satisfied. Personal finance is just that—personal—and only you can decide how much income you need to be truly comfortable.
What is a liveable wage in 2024?
The living wage changes substantially based on the cost of living where you live. For example, according to the MIT Living Wage Calculator, $14.54 per hour is a living wage for a single adult with no children in Pocatello, Idaho, but that figure goes up to $21.58 in Portland, Oregon.
What salary is considered rich for a single person?
While “rich” is relative, the top 5% of people in America earned more than $335,000 in 2021 according to a study by the Economic Policy Institute. However, depending on where you live, $90,000 may feel rich — or not. Cost of living has a major impact.
Photo credit: iStock/andreswd
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will provide you $2,000.^ Terms and conditions apply. This Guarantee is available only for loan applications submitted after 6/15/22 for the purchase of a primary residence. Please discuss terms of this Guarantee with your loan officer. The property must be owner-occupied, single-family residence (no condos), and the loan amount must meet the Fannie Mae conventional guidelines. No bank-owned or short-sale transactions. To qualify for the Guarantee, you must: (1) Have employment income supported by W-2, (2) Receive written approval by SoFi for the loan and you lock the rate, (3) submit an executed purchase contract on an eligible property at least 30 days prior to the closing date in the purchase contract, (4) provide to SoFi (by upload) all required documentation within 24 hours of SoFi requesting your documentation and upload any follow-up required documents within 36 hours of the request, and (5) pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. The Guarantee will be void and not paid if any delays to closing are due to factors outside of SoFi control, including delays scheduling or completing the appraisal appointment, appraised value disputes, completing a property inspection, making repairs to the property by any party, addressing possible title defects, natural disasters, further negotiation of or changes to the purchase contract, changes to the loan terms, or changes in borrower’s eligibility for the loan (e.g., changes in credit profile or employment), or if property purchase does not occur. SoFi may change or terminate this offer at any time without notice to you. ^To redeem the Guarantee if conditions met, see documentation provided by loan officer.
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†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Let’s talk about how sublets work and outline everything you need to know about subletting.
What is subletting?
Subletting is a process where a tenant rents their apartment to someone else for the duration of the lease. The terms and conditions of the original lease stay the same and the original tenant’s name remains on the lease, but the new tenant moves in and becomes responsible for paying rent and utilities. Subletting allows the original tenant to move while renting out their old space to someone new.
A few helpful definitions
Before we explain how sublets work in more detail, here are a few keywords defined.
Subleasing: Subleasing is another term for subletting. Both words refer to the process of renting an apartment or room to someone else.
Lessor: A lessor is someone — commonly called a landlord or property manager — who owns the property and rents it out.
Lessee: The lessee is also known as the renter or tenant. A lessee rents a room or apartment from the lessor.
Sublessee: A sublessee, also called a subtenant, is the person who rents a room or apartment from the lessee when subletting.
Reasons to sublet an apartment
Ideally, when you rent an apartment, you can commit to the terms of the lease. However, life happens and you may find yourself needing to move out prior to the end of the lease. Some situations for moving out early and needing to sublet may include:
Getting married
Having a baby
Graduating college
Relocating for work
Needing more room
Cutting expenses
Moving back home
Regardless of the reason, subletting is a viable option to consider.
How do sublets work?
So, you’ve found yourself in a situation where you need to move, you don’t want to break the lease and you’ve decided to sublet your apartment. Here’s how to go about subletting an apartment.
1. Review your lease agreement
Before you start interviewing candidates for a sublessee, you need to take some time to thoroughly review your current lease agreement. You’ll want to check that subletting is allowed in the first place and fully understand what you can and can’t do.
If you need help understanding the legal jargon of your lease agreement, talk to a lawyer or your landlord. This is a scenario when the fine print matters.
2. Make sure subletting is legal in your state
In some states, subletting is legal, and in others, it’s not. Laws vary state by state so you’ll need to conduct research to understand if subletting is legal in your state.
3. Talk to your landlord
Once you’ve done your homework, reviewed the lease and state laws, it’s time to talk to your landlord and let them know you’d like to sublet the apartment. It’s polite to ask, and not tell them, what you’re doing. Schedule a meeting to let the lessee know your intentions and go over any and all details that are necessary to formally sublet the space.
You can also send them a formal letter requesting permission to sublet.
4. Find a sublessee
Once you’re in agreement with your landlord that you can sublet the apartment, it’s time to find a sublessee. This is your responsibility, not the landlords. You can place ads for a sublessee on social media groups or check out different apps that help you search for roommates or sublessees. Just make sure you find someone you trust as your name is still legally on the lease and your reputation is on the line.
5. Determine the details of your subletting agreement
When you’ve found someone to sublet the apartment, schedule a meeting to go over the details of the subletting agreement. How long will you sublet for? Will the sublessee be responsible for all rent and utilities? When can they move in? Do they need to pay you a security deposit? Get all of the details worked out ahead of time.
6. Get your subletting agreement in writing
Verbal agreements are not sufficient when it comes to subletting. Get all of the details written down so you have a paper trail should things go awry.
7. Coordinate the move with your new sublessee
Have everything in order with your landlord and sublessee? Now it’s time to coordinate the details of when the transition will happen.
Pros and cons to consider when subletting an apartment
As with everything in life, there are pros and cons to subletting an apartment. Because a lease is a legally binding contract, you want to take it seriously and really understand the repercussions — both good and bad — of subletting your apartment.
Pros of subletting an apartment
Keep your lease intact: Subletting allows you to keep your lease intact without breaking the terms and conditions or paying a penalty for breaking the lease early.
Keep your deposits: Subletting allows you to keep the security deposit and first and last month’s rent without forfeiting it. You can save a lot of money by subletting an apartment.
Ability to move as needed: When you find yourself needing to move quickly, subletting allows you to move and still keep your current place of residence. Perhaps you just need to move for three months and want to come back in 90 days? Subletting allows you that freedom.
Cons of subletting an apartment
Difficult to find a sublessee: It can be difficult to find someone trustworthy to take over your lease in a pinch. You want to make sure you trust the sublessee as the lease is still legally in your name.
Stressful to coordinate: Planning a move is difficult in and of itself, let alone trying to coordinate with a sublessee.
Potential of sublessee backing out: While you’ll want to get an agreement in writing with your sublessee, they still can back out of the agreement, leaving you in a bind.
Subletting is an option to keep in mind
Now that we’ve reviewed how sublets work, you’ll know how and what to do should you ever need to sublet an apartment yourself. Or, if you’re looking for a place to rent but don’t want to sign a lease yourself, being a sublessee may be the right option for you.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
The hope is always that you’ll communicate and work out any problems you have before it ever gets this far, but that doesn’t always happen. Sometimes relationships can become toxic by the end. And when that happens, it’s difficult for both parties involved. Here are the signs your roommate doesn’t like you.
1. Cutting off communication
This is one of the big signs your roommate doesn’t like you. When you two stop speaking, or even worse, when all communication comes in the form of a terse text message or a sticky note on the fridge, that’s good indication the relationship is either dead or dying.
2. What a mess
If you’re sharing a home, you need to share the responsibilities of maintaining that home. Sometimes it means maintaining the water heater. But it always means keeping your home neat and tidy. A messy desk is one thing (the sign of a genius, even!). And you can forgive a messy room. But not so much when that mess creeps out of your bedroom and into your shared space like the bathrooms, living room or worse, the kitchen. Keep your kitchens clean!
3. Who ate my creamy all-natural almond butter?
Is your roommate eating your food, deleting your shows from the DVR or even wearing your clothes without your permission? Talk it out before they delete all those reruns of “Say Yes To The Dress” you’ve been saving for a rainy Sunday.
4. The invisible roommate
If your roommate is never there, it could mean one of two things: Either they lead a busy and full life and aren’t home much or they’re not home much because they’re actively avoiding you.
5. They follow the trail
Can your roommate track your movements by the trail of chaos and mess you leave behind? Shoes by the door, clothes on the couch, dirty pots and pans on the stove and a messy bathroom all lead to one riled up roomie.
6. Feeling your inner Felix Unger
On the other side of the coin, if you’re a neat freak who disinfects the remote and follows people around with a dustpan while reminding them to use a coaster, you won’t win any popularity contests, either. Being neat is great. Being a neat freak isn’t.
7. Tummy time!
Do you hang out all day sitting naked on the couch? Do you work and sleep in your roommate’s bed? These behaviors are acceptable only if you’re a dog. Are you a dog? Bad roommate! Very bad roommate!
8. Is it the first already?
Pay your half of the rent on time. Every month. No exceptions. If you come up short, or if you’ll need help paying your half, tell your roommate early. Waiting ’til the last minute or even worse, flaking out altogether, is how you make a roommate an ex-roommate.
9. Do you smell that?
Can you remember the last time it was “your turn” to take out the trash? If you’re stomping on the trash trying to pack it down, odds are you’re not winning any popularity contests.
10. TMI
There’s confiding, and there’s chronic oversharing. Sure, as roommates, you’re expected to share some stuff, but not everything. Some details are better kept to yourself.
11. That looks fun…I guess
No one expects you to have all of the same interests. You may have some stuff in common. That’s part of the reason you’re living together. But if you’re putting down someone’s interests or insulting their favorite reality show, that’s just a jerk move.
12. Overnight guests
No one says you can’t have a partner spend the night, but if your significant other is over a lot (like A LOT), be discreet and respectful. Being kept awake all night by the headboard banging against your shared wall won’t win you any popularity contests.
13. Oh, did I wake you?
Just because you “don’t get tired until late” doesn’t mean anyone living in your home should have to stay awake. It’s fine if one of you is a night owl and the other is an early bird. But keeping the lights on and blasting the TV at 3 a.m. on a Wednesday isn’t cool.
14. Occupado!
Hogging the bathroom, using all the hot water, leaving your makeup all over the vanity or not cleaning out the sink after you shave isn’t only inconsiderate and gross. It’s also just bad hygiene. And if you use all the toilet paper, replace the dang roll. It’s not hard!
15. Your only habits are bad habits
If your roommate isn’t a smoker and complains the furniture and the carpet smells like your cigarettes, it’s a sign your roommate doesn’t like you. You need to take your ashtray outside or take your stuff to another house.
16. Vicious recycle
If your city or town collects recycling, you need to sort all your recyclables. Paper and plastic in one bin. Glass in another. If you think, “Eh, they’ll do it when they collect it,” when you bring everything out to the curb (you ARE bringing out the recycling, right?), you’re wrong. They won’t. And it’s not winning you any friends.
17. Molting and revolting
Personal hygiene is for the bathroom. Not the living room or the kitchen. So, when your hair gets all over the furniture and floors, no one thinks of it as a reminder of your presence. Also, no one wants to see you clipping your toenails on the coffee table. Take that mess to your room!
18. It’s not my fault!
And nothing ever is. If you’re not taking responsibility for your own actions, your roommate will want to take your keys back. Owning your actions is a part of adulthood, and hiding behind excuses and sob stories is what children do. The milk didn’t go bad because it was angry at you. It went bad because you left it on the kitchen table and it sat out all day.
19. I’m sorry you feel that way
You’re quick with a non-apology apology. When you finally realize you did something wrong, do you accept the consequences of your actions and try to make peace? Or, do you say what you think the other person wants to hear?
20. So funny I forgot to laugh
You think you’re hilarious, so why does every joke land with a silent thud? If every attempt at levity results in an indifferent eye roll, it might be time to take a step back.
21. Huh? You say something?
Maybe you don’t have a terrible roommate. Maybe they even try to include you in events and activities, inviting you to come along tubing down a lazy river or to an improv show. And maybe while you appreciate the gesture, it’s not really your scene. But instead of saying that, you ignore their invitations and sit on your couch staring at your phone. If you’re actively ignoring and not engaging, those offers of friendship will dry up.
22. Au naturale
The human body is a beautiful thing. But your roommate doesn’t want to see yours. Wear a towel or a robe when you’re coming out of the bathroom. And when there’s a roommate situation happening, pants are NEVER optional.
23. What’s that in your mouth? Drop it! Drop it!
Sometimes roommates come as a team with a pet. But when there’s an animal in the house, there should be rules and repercussions. If your dog got into your roommate’s bathroom and destroyed everything, you’re responsible. And if you don’t take responsibility, you’ll have to take your stuff and go.
24. You wouldn’t like me when I’m angry
You won’t get along with everyone you meet. And not all people are a good match. But if your roomie gets easily annoyed or angry, it’s a good sign your roommate doesn’t like you. Why live with someone who brings out the worst in you? Why bring out the worst in each other?
25. You’re just different people
Sometimes in life, you’re going to meet people you just don’t like and who don’t like you. Neither of you was offensive or rude or inconsiderate. Not everyone was meant to live together. And some relationships are better off being short term arrangements and ending peacefully.
How to handle roommate problems
If you see signs your roommate doesn’t like you, try to talk it out calmly and respectfully.
Roommates will bicker and annoy each other. It’s bound to happen in any dynamic. And no one is saying you have to be best friends. Most of us weren’t that lucky in the freshman dorms. But that doesn’t mean you can’t find some things to bond over…like a peaceful home, bad reality TV and not leaving dirty dishes in the sink overnight.
Many people are turning to the option of living with a roommate to help balance out the financial strain of rental prices. Make sure you find the right one.
Since living with someone else can turn out as a pretty terrible experience sometimes, it’s important to vet out your roommates beforehand to avoid the bad ones. We’ve all heard the horror stories of piles of dirty dishes, the garbage that’s never taken out and late-night weekday parties. You may have even experienced these frustrations first-hand.
If you haven’t looked for one before, you may wonder how to find a roommate. Fortunately, with social networks and technology, there are plenty of roommate finder apps to help your search. Here is a list of our favorites and tips for identifying what is the best roommate finder app and websites for you.
1. Roomi
Roomi uses an algorithm to match you up with a roommate that would best be suited for you. You answer questions about yourself, what you’re looking for in an ideal roommate and Roomi then works its magic to pair two matches together.
Roomi has users do quick background checks and gives the option to link social media accounts so both roommates can feel more confident and secure in the process. Once you’re ready to message a potential “roomi,” you can do so through the app so you don’t have to exchange any personal contact information until you’re ready.
2. Roomster
Roomster has listings in more than 192 countries and 18 languages. It connects potential roommates using personality traits, keyword searches and interests to help you find your ideal match.
Members can match based on testimonials from friends, hobbies, interests and questions answered through their profiles. Roomster allows users to link their social accounts, so this app tends to have more data to find the perfect match. Once you find a potential roommate that looks promising, you can connect with them through the Roomster mailbox.
3. RoomEasy
RoomEasy is kind of like the Tinder of roommate apps. With RoomEasy, you create a profile, add personal description tags from their system and browse roommate and apartment listings. You can also connect your Facebook profile and see if your potential new roommate and you have any mutual friends.
Once you find something that interests you, you’ll “like” your favorite places or potential roommates’ profiles, and if they “like” yours, you’ll be matched. Once you’re matched, you can connect through the chat app.
4. SpareRoom
SpareRoom claims it is the busiest roommate app, with a roommate match being found every three minutes on its platform. What really sets SpareRoom apart from some other roommate apps is that it has a team of real people that screen each and every ad on SpareRoom so you can ensure listings are safe and verified.
This app even hosts speed room-mating events where you can meet up with people in your community and go through a roommate speed date-like process to see if you find someone you mix well with.
5. BunkUp
BunkUp is a pretty cool app that will help you find a roommate and an apartment. With BunkUp, much like the other apps, you fill out details about yourself and what you’re looking for in a roommate and are you’re matched or “BunkedUp.”
You can look for someone to move into your open space, move into a vacant room someone else is offering or find a new roommate to look for an entirely new apartment with. BunkUp even has agents that will help you find a new apartment.
6. Circle
Circle allows you to create a profile as either someone looking for a roommate to move into your place or as someone searching for a new place to live. It shows your potential roommates based on your profile and specifications.
It even “verifies” users, which means that a user has an authenticated driver’s license connected to their profile and they’ve passed a background check. Circle always shows you the “verified” potential roommates before all others, so you know that those who show up higher on your list are real people that aren’t trying to pull a scam. You’ll also be able to chat with potential roommates and ask questions to see who you get along with best to create a positive living environment.
7. Cirtru
Website only
Cirtru has truly adapted to the digital age. It allows users to take virtual tours within the platform so you can check it out safely from wherever you are. This makes it easy to both find a roommate to fill a vacancy in your home or look for an empty room to move into.
Cirtru is especially useful for animal lovers and owners as it allows you to set your preferences based on many criteria, including pet-friendly rentals and pet-welcoming roommates.
8. RoomieMatch
Website only
RoomieMatch is all about safety. It uses human “Scam Busters” to review submissions and listings, including an IP address location check to share the actual city in which people are, so you won’t deal with many scammers. Plus, your personal info is stored offline, instead of inline, so it can’t be accessed by online hackers and spammers
As a user, you can set your RoomieMatches based on gender, sexual orientation, lifestyle choices (like smoking/non-smoking), age and pet-friendliness.
9. Diggz
Website only
Diggz matches you with roommates based on a variety of factors connected with your profile, like your lifestyle, personality and personal preferences. You’ll be able to “like” other profiles that you’d be interested in rooming with. It’s similar to dating apps where you only talk to people that you “like” and who “like” you back.
Diggz works for almost any situation, whether you’re looking for a new roommate to move in with you, you want to move in with someone else or you want to search for a new place with a new roommate.
10. Roomaters
Roomaters uses more than the preferences you set for finding a roommate. Users take a personality test that helps when matching them with potential roommates.
Plus, you’ll get to input your interests, hobbies and a bit about what kind of roommate you are (social, introverted, messy, neat freak, etc.). So whether you like music, art, rock climbing or superhero movies, you can find someone you’ll enjoy living with.
Ask the right questions before sharing a living space
No matter where you source your new roomie, it’s essential to pose some hard-hitting questions aimed at gaining insights into their way of life and financial well-being. Here are several queries to initiate the conversation:
What qualities are you seeking in a roommate?
Are you thinking about a month-to-month rental arrangement, or are you leaning towards a longer commitment, such as a year?
Could you provide an overview of your typical work hours?
Do you share your living space with any pets?
What are your usual waking and sleeping hours?
How do you typically spend your leisure time?
Are there frequent visitors in your social circle? If so, who usually comes around?
Is smoking or alcohol consumption part of your routine?
Do you have any significant food or animal-related allergies?
Are you planning to bring along any furniture items? Do you have a need for parking space, perhaps a garage? What is your approach to maintaining cleanliness and tidiness around the house?
Roommate finder apps pair you with the right person
With so many roommate finder apps out there, it’s easier than ever to locate a perfect roommate — or at least a good one. Gone are the days of blindly showing up at someone’s place or finding a creepy classified ad in the paper. If you’re looking for the ideal roommate, give one of the above apps or sites a try.
…And Rent. pairs you with the right apartment
Maybe you already know who your potential roommate will be but you’re still looking at apartments together. We can help with that, too. Just type in your target city to get started, then filter by price range, pet-friendly apartments and more to help you decide.
Morgen Henderson is a writer who grew up in Utah. She lived in the Dominican Republic for a year and a half, where she was involved in humanitarian service. Some of Morgen’s work has appeared in State of Digital, The Next Scoop and TechPatio. In her free time, she loves to travel, bake, master DIY projects and improve her Spanish skills.
Imagine slashing your monthly mortgage payment to zero or, better yet, turning a profit from the very place you call home. This isn’t a daydream for the financially savvy few; it’s the reality of house hacking.
Through the eyes of those who’ve made it work, house hacking transforms your living situation into an opportunity for financial freedom. From young professionals to families, people across the country are finding that their biggest expense—housing—can actually become their biggest asset.
What is house hacking?
House hacking is a strategy that involves purchasing a primary residence with the intention of living in one part while renting out the rest as a rental property. This could mean buying a multifamily home and living in one unit, renting out the others, or even renting out spare bedrooms in a single-family home. The rent collected from tenants goes towards the mortgage and other property-related expenses, potentially allowing the owner to live for free or even make a profit.
A Spectrum of Possibilities
The beauty of house hacking lies in its flexibility. Here are a few scenarios to illustrate its range:
The Multi-Unit Maven: Alex buys a duplex, lives in one unit, and rents out the other. The rent from the second unit covers the mortgage, meaning Alex lives mortgage-free.
The Single-Family Sharer: Jamie purchases a four-bedroom house, occupies one room, and rents out the other three. The rental income covers all housing costs.
The Basement Dweller: Casey acquires a home with a separate basement apartment. Living in the basement, Casey rents out the main floor, using the rent to pay the mortgage and save for future investments.
These examples highlight how you can house hack to adapt to different housing markets, personal living preferences, and financial goals. Whether you’re drawn to the idea of living rent-free, eager to dive into real estate investment, or looking for a way to reduce your housing expenses, house hacking offers a practical path to achieving your objectives.
Tailoring the Strategy to Your Lifestyle
Choosing the right house hacking approach depends on your lifestyle, financial goals, and how comfortable you are sharing your space. Considerations include the type of investment property, your desired level of interaction with tenants, and local market conditions. The key is to find a balance that works for you, ensuring your home remains a comfortable place for you while optimizing its income potential.
By embracing the concept of house hacking, you can transform your approach to homeownership, turning a typically expensive part of your life into a source of income. With careful planning and a bit of creativity, your journey towards financial independence might just start at your own front door.
Benefits of House Hacking
House hacking isn’t just a real estate strategy; it’s a lifestyle adjustment that opens doors to numerous financial and personal benefits. Let’s dive into the advantages, supported by real-world examples and data, to understand why so many are turning to house hacking as a way to improve their financial health.
Financial Freedom Faster
One of the most compelling benefits of house hacking is the accelerated path it provides toward financial freedom. By significantly reducing or eliminating one of life’s largest expenses—housing—you can allocate funds towards paying down debt, investing, or saving for future goals.
For instance, consider the case of Sam, who purchased a triplex, lived in one unit, and rented out the other two. The rental income not only covered the mortgage but also allowed Sam to save an additional $1,000 a month. This extra savings contributed to Sam’s ability to retire early, a dream that seemed unreachable before house hacking.
Access to Better Financing Options
House hackers often enjoy more favorable financing terms. Owner-occupants can qualify for lower down payments and better interest rates compared to traditional investment property loans.
For example, an FHA loan might require as little as 3.5% down for a multi-unit property, provided one of the units will be owner-occupied. This lower barrier to entry makes real estate investment accessible to more people. Data shows that owner-occupied financing options can save homeowners thousands of dollars over the life of a loan, making the investment in house hacking even more appealing.
Learning the Ropes of Real Estate Investing
House hacking serves as an invaluable hands-on education in real estate investing and property management. This benefit is difficult to quantify, but incredibly valuable.
Take Angela, who started her real estate journey through house hacking. By managing her duplex, Angela gained firsthand experience in screening tenants, handling maintenance issues, and understanding the financial aspects of real estate investments. This knowledge empowered her to expand her portfolio and become a full-time real estate investor.
Tax Advantages
House hacking can also lead to potential tax deductions, including mortgage interest, property taxes, and expenses related to renting out part of your home. These deductions can significantly lower your taxable income.
For example, let’s say John allocates 50% of his property’s square footage to tenant use. John can deduct 50% of the mortgage interest, property taxes, and maintenance expenses on his tax return, providing a substantial financial benefit at the end of the fiscal year.
Building Wealth Over Time
House hacking stands out not just for its immediate financial relief on living expenses but also for its profound long-term impact on wealth accumulation. By strategically applying rental income towards mortgage payments, those who house hack effectively build equity without dipping into personal savings. This method of leveraging other people’s money accelerates wealth building, offering a tangible path to increasing net worth over the years.
Instead of allocating a significant portion of their income towards housing, house hackers can redirect these funds into savings, investments, or debt reduction. This shift not only enhances financial security but also amplifies the potential for future financial growth
While outcomes can vary based on numerous factors like market dynamics and property management, the foundational strategy of house hacking provides a compelling approach to financial independence and wealth building.
Case Studies That Inspire
The real magic of house hacking comes alive through the stories of those who’ve embraced it. From the young professional who used house hacking to eliminate student debt to the couple that built a real estate empire starting with a single house hack, these narratives underscore the transformative power of this strategy.
By analyzing their journeys, we uncover a common thread—a strategic approach to living and real estate investing that turns conventional wisdom on its head and opens up new possibilities for financial independence.
Exploring Your Options: Five House Hacking Strategies
So, now that you understand what housing hacking is and what the benefits are, how do you get started? Well, depending on your goals, here are four different ways you can go about it.
1. Rent out a portion of your home
The most common way to get started house hacking is by buying a home and then renting out a portion of it. For instance, if you bought a two-story home, you could rent out the downstairs. Or, if you buy a home with a finished basement, you could live upstairs and rent out the basement.
This house hacking strategy is good in low-cost living areas because the rental income could actually cover your monthly mortgage payments. However, this may not work out in parts of the country that have a high cost of living.
2. Rent out your home entirely
If renting out a portion of your home isn’t enough to move the needle financially, then you could try renting your entire house. This could be a suitable option for anyone who is young and able to find an alternative, affordable living situation.
For instance, if you could temporarily live in a trailer or rent an apartment with a roommate, you could rent out your home for more money. This would allow you to pay off the house and cover your monthly rent payments.
3. Rent out by the room
If you’re just looking for a little extra money every month and don’t want to sacrifice the majority of your home, you could just try renting out one room. For instance, if you have a large four-bedroom home, you could rent out one room.
This gives you some extra money to put toward your mortgage payments, but you still get to enjoy the benefits of being a homeowner.
4. Rent out an additional unit
Many of the options on this list are ideal for young, single people. But what if you’re married and have a family? In that case, the idea of living with full-time roommates might not interest you.
If so, you could buy a multifamily property and rent out the other units. You could also rent out units attached to your home. This could be a unit that either comes with the house or one that you build yourself.
This will take some effort because you’ll need to fix it up and turn it into a space someone would want to rent. But if you have the interest, this could be the best way to house hack your primary residence while still protecting your family’s personal space.
5. Do a live-in flip
Live-in flipping is a popular real estate investment strategy where the investor purchases a residential property and lives in it while making improvements to increase the property’s value. The investor will then resell the property at a higher price than they originally paid for it, resulting in a profit. This strategy is often used by investors who are looking to build equity quickly.
Living in the property allows you to get to know the neighborhood, research the local market, and avoid paying rent while working on the property. The improvements you make can include anything from painting and landscaping to remodeling the interior of the home.
Legal and Tax Implications of House Hacking
Venturing into house hacking offers financial benefits but also introduces a set of legal and tax considerations that are crucial for a successful strategy. Here’s a concise overview to guide you through these aspects:
Local Zoning Laws
Zoning Requirements: Check your local zoning ordinances to ensure that your house hacking plans comply with regulations regarding rental properties, especially if you intend to modify a single-family home into a multi-unit property.
Permits: Obtain any necessary permits for renovations or conversions to avoid legal issues and ensure the safety and legality of your property for tenants.
Tax Benefits and Liabilities
Rental Income Reporting: Understand that rental income must be reported on your tax returns. Proper documentation of income and expenses is essential for accurate reporting.
Deductible Expenses: Familiarize yourself with what can be deducted, such as mortgage interest, property taxes, maintenance costs, insurance, and depreciation. These deductions can significantly reduce your taxable income.
Capital Gains: If you sell your property for a profit, be aware of capital gains tax. Living in the property for two of the five years before selling can qualify you for an exclusion on capital gains tax up to a certain limit.
Compliance with Landlord-Tenant Laws
Legal Responsibilities: As a landlord, you’ll need to adhere to state and federal laws regarding tenant rights, fair housing, and safety standards. This includes understanding eviction procedures, security deposit regulations, and the requirement for habitable living conditions.
Proper Reporting and Documentation
Keeping Records: Maintain meticulous records of all financial transactions, leases, and communications with tenants. This documentation will be vital for tax purposes and in the event of legal disputes.
Professional Advice
Consultation: Given the complexity of tax laws and real estate regulations, consulting with a tax professional and a real estate attorney can provide tailored advice and ensure you’re maximizing your benefits while minimizing legal risks.
House Hacking Checklist: Preparing for Success
House hacking requires careful planning and consideration. To ensure you’re well-prepared, we’ve compiled a comprehensive checklist. This guide will help you work through the initial stages, make informed decisions, and set you up for a successful house hacking experience.
1. Assess Your Financial Readiness
Evaluate Your Financial Health: Check your credit score, debt-to-income ratio, and savings. Your financial stability will affect loan approval and interest rates.
Budget for Upfront Costs: Calculate potential down payments, closing costs, renovation expenses, and an emergency fund for unexpected repairs.
2. Understand Financing Options
Research Loan Types: Familiarize yourself with different mortgage options, including FHA loans, conventional loans, and VA loans, if applicable.
Pre-Approval: Before house hunting, get pre-approved for a mortgage to understand how much you can afford and demonstrate your seriousness to sellers.
3. Choose the Right Property
Analyze the Potential ROI: When selecting a property, assess key return on investment (ROI) metrics, including cash flow, cash-on-cash return, net operating income (NOI), and cap rate. These metrics will help you understand the financial performance and potential profitability of the property.
Location: Select a location with high rental demand, considering factors like proximity to schools, employment centers, and public transportation.
Property Type: Decide whether a single-family home, multifamily property, or another type of property, suits your goals and budget best.
Condition: Be realistic about the amount of work you can handle. A fixer-upper may offer a higher return but requires more investment upfront.
4. Plan for Landlord Responsibilities
Understand Landlord-Tenant Laws: Research local laws regarding landlord responsibilities, eviction processes, and tenant rights.
Create a Lease Agreement: Draft a clear and comprehensive lease agreement that outlines rent, rules, and responsibilities. Consider seeking the advice of a legal professional.
5. Prepare for Property Management
Tenant Screening: Develop a process for screening tenants, including credit and background checks, to ensure reliability and compatibility.
Maintenance and Repairs: Plan for regular maintenance and emergency repairs. Consider whether you’ll handle repairs yourself or hire professionals.
6. Consider Privacy and Lifestyle Changes
Set Boundaries: Think about how you’ll maintain privacy and manage shared spaces, especially if renting out part of your primary residence.
Adjust Expectations: Living with tenants or managing a rental property can bring challenges. Be prepared for a lifestyle adjustment.
7. Develop an Exit Strategy
Long-Term Goals: Consider your long-term real estate and financial goals. How does house hacking fit into your broader investment strategy?
Resale Considerations: Keep potential resale value in mind when choosing and maintaining your property. Making wise improvements can enhance future profitability.
8. Continuous Learning
Educate Yourself: Real estate and property management are complex fields. Continually seek knowledge through books, podcasts, and networking with experienced investors.
This checklist is your starting point for a thoughtful and structured approach to house hacking. By addressing each item, you’re laying a solid foundation for your real estate investment journey, poised to navigate the challenges and reap the rewards of this strategic endeavor.
Bottom Line
House hacking is a creative way to pay off your mortgage, improve your monthly cash flow, and gain real estate experience. You can begin house hacking as a way to earn a little extra cash every month, or you could treat it like a long-term real estate investment strategy. You can put as much or as little into it as you want.
Just make sure you do your due diligence before getting started. Make any necessary adjustments to the house, choose your tenants carefully, and take your responsibilities as a landlord seriously. This allows you to make the most of your house hacking experience.
Imagine slashing your monthly mortgage payment to zero or, better yet, turning a profit from the very place you call home. This isn’t a daydream for the financially savvy few; it’s the reality of house hacking.
Through the eyes of those who’ve made it work, house hacking transforms your living situation into an opportunity for financial freedom. From young professionals to families, people across the country are finding that their biggest expense—housing—can actually become their biggest asset.
What is house hacking?
House hacking is a strategy that involves purchasing a primary residence with the intention of living in one part while renting out the rest as a rental property. This could mean buying a multifamily home and living in one unit, renting out the others, or even renting out spare bedrooms in a single-family home. The rent collected from tenants goes towards the mortgage and other property-related expenses, potentially allowing the owner to live for free or even make a profit.
A Spectrum of Possibilities
The beauty of house hacking lies in its flexibility. Here are a few scenarios to illustrate its range:
The Multi-Unit Maven: Alex buys a duplex, lives in one unit, and rents out the other. The rent from the second unit covers the mortgage, meaning Alex lives mortgage-free.
The Single-Family Sharer: Jamie purchases a four-bedroom house, occupies one room, and rents out the other three. The rental income covers all housing costs.
The Basement Dweller: Casey acquires a home with a separate basement apartment. Living in the basement, Casey rents out the main floor, using the rent to pay the mortgage and save for future investments.
These examples highlight how you can house hack to adapt to different housing markets, personal living preferences, and financial goals. Whether you’re drawn to the idea of living rent-free, eager to dive into real estate investment, or looking for a way to reduce your housing expenses, house hacking offers a practical path to achieving your objectives.
Tailoring the Strategy to Your Lifestyle
Choosing the right house hacking approach depends on your lifestyle, financial goals, and how comfortable you are sharing your space. Considerations include the type of investment property, your desired level of interaction with tenants, and local market conditions. The key is to find a balance that works for you, ensuring your home remains a comfortable place for you while optimizing its income potential.
By embracing the concept of house hacking, you can transform your approach to homeownership, turning a typically expensive part of your life into a source of income. With careful planning and a bit of creativity, your journey towards financial independence might just start at your own front door.
Benefits of House Hacking
House hacking isn’t just a real estate strategy; it’s a lifestyle adjustment that opens doors to numerous financial and personal benefits. Let’s dive into the advantages, supported by real-world examples and data, to understand why so many are turning to house hacking as a way to improve their financial health.
Financial Freedom Faster
One of the most compelling benefits of house hacking is the accelerated path it provides toward financial freedom. By significantly reducing or eliminating one of life’s largest expenses—housing—you can allocate funds towards paying down debt, investing, or saving for future goals.
For instance, consider the case of Sam, who purchased a triplex, lived in one unit, and rented out the other two. The rental income not only covered the mortgage but also allowed Sam to save an additional $1,000 a month. This extra savings contributed to Sam’s ability to retire early, a dream that seemed unreachable before house hacking.
Access to Better Financing Options
House hackers often enjoy more favorable financing terms. Owner-occupants can qualify for lower down payments and better interest rates compared to traditional investment property loans.
For example, an FHA loan might require as little as 3.5% down for a multi-unit property, provided one of the units will be owner-occupied. This lower barrier to entry makes real estate investment accessible to more people. Data shows that owner-occupied financing options can save homeowners thousands of dollars over the life of a loan, making the investment in house hacking even more appealing.
Learning the Ropes of Real Estate Investing
House hacking serves as an invaluable hands-on education in real estate investing and property management. This benefit is difficult to quantify, but incredibly valuable.
Take Angela, who started her real estate journey through house hacking. By managing her duplex, Angela gained firsthand experience in screening tenants, handling maintenance issues, and understanding the financial aspects of real estate investments. This knowledge empowered her to expand her portfolio and become a full-time real estate investor.
Tax Advantages
House hacking can also lead to potential tax deductions, including mortgage interest, property taxes, and expenses related to renting out part of your home. These deductions can significantly lower your taxable income.
For example, let’s say John allocates 50% of his property’s square footage to tenant use. John can deduct 50% of the mortgage interest, property taxes, and maintenance expenses on his tax return, providing a substantial financial benefit at the end of the fiscal year.
Building Wealth Over Time
House hacking stands out not just for its immediate financial relief on living expenses but also for its profound long-term impact on wealth accumulation. By strategically applying rental income towards mortgage payments, those who house hack effectively build equity without dipping into personal savings. This method of leveraging other people’s money accelerates wealth building, offering a tangible path to increasing net worth over the years.
Instead of allocating a significant portion of their income towards housing, house hackers can redirect these funds into savings, investments, or debt reduction. This shift not only enhances financial security but also amplifies the potential for future financial growth
While outcomes can vary based on numerous factors like market dynamics and property management, the foundational strategy of house hacking provides a compelling approach to financial independence and wealth building.
Case Studies That Inspire
The real magic of house hacking comes alive through the stories of those who’ve embraced it. From the young professional who used house hacking to eliminate student debt to the couple that built a real estate empire starting with a single house hack, these narratives underscore the transformative power of this strategy.
By analyzing their journeys, we uncover a common thread—a strategic approach to living and real estate investing that turns conventional wisdom on its head and opens up new possibilities for financial independence.
Exploring Your Options: Five House Hacking Strategies
So, now that you understand what housing hacking is and what the benefits are, how do you get started? Well, depending on your goals, here are four different ways you can go about it.
1. Rent out a portion of your home
The most common way to get started house hacking is by buying a home and then renting out a portion of it. For instance, if you bought a two-story home, you could rent out the downstairs. Or, if you buy a home with a finished basement, you could live upstairs and rent out the basement.
This house hacking strategy is good in low-cost living areas because the rental income could actually cover your monthly mortgage payments. However, this may not work out in parts of the country that have a high cost of living.
2. Rent out your home entirely
If renting out a portion of your home isn’t enough to move the needle financially, then you could try renting your entire house. This could be a suitable option for anyone who is young and able to find an alternative, affordable living situation.
For instance, if you could temporarily live in a trailer or rent an apartment with a roommate, you could rent out your home for more money. This would allow you to pay off the house and cover your monthly rent payments.
3. Rent out by the room
If you’re just looking for a little extra money every month and don’t want to sacrifice the majority of your home, you could just try renting out one room. For instance, if you have a large four-bedroom home, you could rent out one room.
This gives you some extra money to put toward your mortgage payments, but you still get to enjoy the benefits of being a homeowner.
4. Rent out an additional unit
Many of the options on this list are ideal for young, single people. But what if you’re married and have a family? In that case, the idea of living with full-time roommates might not interest you.
If so, you could buy a multifamily property and rent out the other units. You could also rent out units attached to your home. This could be a unit that either comes with the house or one that you build yourself.
This will take some effort because you’ll need to fix it up and turn it into a space someone would want to rent. But if you have the interest, this could be the best way to house hack your primary residence while still protecting your family’s personal space.
5. Do a live-in flip
Live-in flipping is a popular real estate investment strategy where the investor purchases a residential property and lives in it while making improvements to increase the property’s value. The investor will then resell the property at a higher price than they originally paid for it, resulting in a profit. This strategy is often used by investors who are looking to build equity quickly.
Living in the property allows you to get to know the neighborhood, research the local market, and avoid paying rent while working on the property. The improvements you make can include anything from painting and landscaping to remodeling the interior of the home.
Legal and Tax Implications of House Hacking
Venturing into house hacking offers financial benefits but also introduces a set of legal and tax considerations that are crucial for a successful strategy. Here’s a concise overview to guide you through these aspects:
Local Zoning Laws
Zoning Requirements: Check your local zoning ordinances to ensure that your house hacking plans comply with regulations regarding rental properties, especially if you intend to modify a single-family home into a multi-unit property.
Permits: Obtain any necessary permits for renovations or conversions to avoid legal issues and ensure the safety and legality of your property for tenants.
Tax Benefits and Liabilities
Rental Income Reporting: Understand that rental income must be reported on your tax returns. Proper documentation of income and expenses is essential for accurate reporting.
Deductible Expenses: Familiarize yourself with what can be deducted, such as mortgage interest, property taxes, maintenance costs, insurance, and depreciation. These deductions can significantly reduce your taxable income.
Capital Gains: If you sell your property for a profit, be aware of capital gains tax. Living in the property for two of the five years before selling can qualify you for an exclusion on capital gains tax up to a certain limit.
Compliance with Landlord-Tenant Laws
Legal Responsibilities: As a landlord, you’ll need to adhere to state and federal laws regarding tenant rights, fair housing, and safety standards. This includes understanding eviction procedures, security deposit regulations, and the requirement for habitable living conditions.
Proper Reporting and Documentation
Keeping Records: Maintain meticulous records of all financial transactions, leases, and communications with tenants. This documentation will be vital for tax purposes and in the event of legal disputes.
Professional Advice
Consultation: Given the complexity of tax laws and real estate regulations, consulting with a tax professional and a real estate attorney can provide tailored advice and ensure you’re maximizing your benefits while minimizing legal risks.
House Hacking Checklist: Preparing for Success
House hacking requires careful planning and consideration. To ensure you’re well-prepared, we’ve compiled a comprehensive checklist. This guide will help you work through the initial stages, make informed decisions, and set you up for a successful house hacking experience.
1. Assess Your Financial Readiness
Evaluate Your Financial Health: Check your credit score, debt-to-income ratio, and savings. Your financial stability will affect loan approval and interest rates.
Budget for Upfront Costs: Calculate potential down payments, closing costs, renovation expenses, and an emergency fund for unexpected repairs.
2. Understand Financing Options
Research Loan Types: Familiarize yourself with different mortgage options, including FHA loans, conventional loans, and VA loans, if applicable.
Pre-Approval: Before house hunting, get pre-approved for a mortgage to understand how much you can afford and demonstrate your seriousness to sellers.
3. Choose the Right Property
Analyze the Potential ROI: When selecting a property, assess key return on investment (ROI) metrics, including cash flow, cash-on-cash return, net operating income (NOI), and cap rate. These metrics will help you understand the financial performance and potential profitability of the property.
Location: Select a location with high rental demand, considering factors like proximity to schools, employment centers, and public transportation.
Property Type: Decide whether a single-family home, multifamily property, or another type of property, suits your goals and budget best.
Condition: Be realistic about the amount of work you can handle. A fixer-upper may offer a higher return but requires more investment upfront.
4. Plan for Landlord Responsibilities
Understand Landlord-Tenant Laws: Research local laws regarding landlord responsibilities, eviction processes, and tenant rights.
Create a Lease Agreement: Draft a clear and comprehensive lease agreement that outlines rent, rules, and responsibilities. Consider seeking the advice of a legal professional.
5. Prepare for Property Management
Tenant Screening: Develop a process for screening tenants, including credit and background checks, to ensure reliability and compatibility.
Maintenance and Repairs: Plan for regular maintenance and emergency repairs. Consider whether you’ll handle repairs yourself or hire professionals.
6. Consider Privacy and Lifestyle Changes
Set Boundaries: Think about how you’ll maintain privacy and manage shared spaces, especially if renting out part of your primary residence.
Adjust Expectations: Living with tenants or managing a rental property can bring challenges. Be prepared for a lifestyle adjustment.
7. Develop an Exit Strategy
Long-Term Goals: Consider your long-term real estate and financial goals. How does house hacking fit into your broader investment strategy?
Resale Considerations: Keep potential resale value in mind when choosing and maintaining your property. Making wise improvements can enhance future profitability.
8. Continuous Learning
Educate Yourself: Real estate and property management are complex fields. Continually seek knowledge through books, podcasts, and networking with experienced investors.
This checklist is your starting point for a thoughtful and structured approach to house hacking. By addressing each item, you’re laying a solid foundation for your real estate investment journey, poised to navigate the challenges and reap the rewards of this strategic endeavor.
Bottom Line
House hacking is a creative way to pay off your mortgage, improve your monthly cash flow, and gain real estate experience. You can begin house hacking as a way to earn a little extra cash every month, or you could treat it like a long-term real estate investment strategy. You can put as much or as little into it as you want.
Just make sure you do your due diligence before getting started. Make any necessary adjustments to the house, choose your tenants carefully, and take your responsibilities as a landlord seriously. This allows you to make the most of your house hacking experience.
Looking for under the table jobs? When you’re looking for ways to earn extra cash, under the table jobs can be a route to take. These jobs typically pay with cash only. These can be part-time jobs, side hustles, or even a full-time career. Now, with under the table jobs, the person paying you is…
Looking for under the table jobs?
When you’re looking for ways to earn extra cash, under the table jobs can be a route to take. These jobs typically pay with cash only.
These can be part-time jobs, side hustles, or even a full-time career.
Now, with under the table jobs, the person paying you is not paying taxes. But, you still should pay taxes, as it is the law in the U.S.
Key Takeaways
Under the table jobs are a flexible way to earn cash without formal employment.
You can tap into many different job fields, from childcare to handyman services, to make extra money.
If a person pays you in cash, it’s still important to report that income to the IRS. If you don’t, it could be tax evasion, which is illegal.
Best Under the Table Jobs
If you’re looking for ways to earn cash, there are plenty of jobs that you can do under the table.
Some popular options include:
As a handyman, you can fix things around a house, like replacing a bathroom mirror or broken doors. If you’re good with tools and fixing things, this can be a great way to make some money.
If you like sharing what you know, tutoring might be a good side gig for you. You can help kids with their schoolwork or even teach music if you play an instrument.
Babysitting is a classic way to earn cash. You watch kids while their parents are away and might even help them with homework.
Love being outside? Try landscaping or mowing lawns. You can make yards look nice and make good money.
For those who love animals, dog walking or pet sitting are fun ways to make money. Spend time with pets, take them for walks, and make sure they’re fed.
Continue reading below to see the full list and learn more about under the table jobs.
1. Reseller
Resellers buy items and sell them for a higher price to make a profit.
You can find things at low prices from garage sales, thrift stores, or online clearance deals. Then, you sell them in places like eBay, Facebook Marketplace, Craigslist, or even to friends and family.
You can sell things like clothes, electronics, toys, and books that people want. It’s usually a good idea to choose items you know a lot about because it makes it easier for you to know a good deal when you see one.
I personally have many friends who are resellers, and I was a reseller in the past as well (before I started blogging full-time!). It can be a great way to make cash income.
Whether you’re looking to make just a little extra cash or if you want a full-time job, this is a good option to look into.
I recommend watching the free webinar Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days to learn how to make money by flipping items.
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
2. Childcare
A popular cash job is babysitting. Most moms and dads need good babysitters, and they’re happy to pay a fair amount for someone to watch their kids while they go out for the evening.
Babysitters make a good income these days – typically around $20 per hour.
If you think it might be tough to earn money this way, don’t worry – it’s possible. Just posting a simple message on your Facebook page could connect you with someone who needs a babysitter.
Note: I recommend making sure you check with your city or state before you begin. Also, make sure that your home is safe (if you watch children in your own home) and that you are CPR certified.
Recommended reading: 29 Best Stay At Home Jobs
3. Home and yard maintenance
When you’re looking for a way to make some extra money, you can do home and yard maintenance jobs. These are tasks people don’t have time to do themselves (or they simply don’t like to do!).
For example, if you like being outdoors, landscaping work might be perfect for you. Jobs in this area include lawn mowing, trimming hedges, and planting flowers.
If you prefer working indoors, you might focus on home maintenance tasks instead. Tasks like house cleaning or helping to organize a garage are commonly needed.
These jobs usually pay in cash at the end of the day or after the job is done. Usually, the homeowner pays you in cash before you go home.
4. Pet groomer
Pet groomers clean pets so that they look nice and healthy (and everyone needs a regular bath!). If you like pets, then you may enjoy being a pet groomer.
Pet groomers can sometimes get paid in cash, especially when you run your own business. I have seen many pet grooming businesses that operate out of a trailer that the person pulls behind their vehicle. They go straight to the person’s home, wash their dog in their mobile dog cleaning trailer, and then collect the cash payment once they are done.
Your work will include brushing and cutting fur, trimming nails, giving baths, and maybe even brushing the pet’s teeth. You make sure pets are clean, comfortable, and looking good. Sometimes, pet owners might also ask you to style their pets’ fur in a special way as well (such as by pinning back fur out of the dog’s eyes).
5. Pet sitter
Working as a pet sitter can be a simple and enjoyable way to earn extra cash.
As a pet sitter, your job is to keep an eye on someone’s pet while they are away. This can include feeding, walking, and playing with the pet to make sure it’s happy and healthy. You may need to stay overnight at the pet owner’s home or the pet may stay with you (it simply depends on what you and the pet owner agree on).
You can find pet sitting jobs on Rover. I have personally used this site countless times to find a pet sitter for my dogs.
Another under the table job similar to this is becoming a house sitter. House sitters watch homes while the owner is away and this can be a great side hustle. I talk more about this in a section further below.
6. House cleaning
When you’re looking for work that’s paid directly in cash, without formal paperwork, you might want to start with house cleaning.
So, what does a house cleaner include? Well, you’ll do things like dusting, vacuuming floors, and cleaning bathrooms. Sometimes, you’ll wash dishes or do laundry. If the house has pets, you might need to clean up after them too. Some house cleaners may even specialize in areas like extensive deep cleans that may take a whole day or even many days (or weeks!).
House cleaners earn between $25 to $50+ an hour for cleaning for others.
To get paid in cash means that you’ll typically work for yourself and get paid once you are done with cleaning for the day or after a week or two.
Getting this kind of business going isn’t costly because you probably already have the cleaning supplies you need (like a mop and vacuum). You can let people know about your services on Facebook, tell your friends and family, or create an account on Care’s website.
7. Dog walker
Dog walkers are exactly that – they walk dogs to make money.
You can find these jobs posted on platforms like Rover or just by posting something on your personal Facebook page advertising your dog walking service.
As a dog walker, your job is to take dogs for their daily walks while their owners are busy. This may be a walk that is around 30 minutes to one hour each time, but it all depends on what you have agreed on with the owner.
Walking pets can earn you about $15 to $25 or even more for each walk per animal.
8. Snow removal
If you’re good with a snow shovel or snowblower, snow removal might be a great job for you. This work can pay cash, making it a common under the table job.
When it snows, many people need help clearing their driveways and sidewalks. Some jobs are for one-time events, while others might need you all winter right after it snows to keep their driveways and sidewalks safe for people to walk or drive on.
You can find snow removal jobs by asking your neighbors or local businesses. Sometimes people put up signs along the roads in neighborhoods or ads online looking for help when there’s a big snowstorm.
People usually pay right after you’re done with the work.
9. Makeup artist
If you enjoy using makeup and know all the latest beauty trends, being a makeup artist can be a fun way to earn money.
It’s a job where you can be creative and help people look their best for events like weddings or photo shoots.
As a makeup artist, you’ll work with different tools like brushes, sponges, and a palette of colors. Your job will be to apply makeup on clients’ faces. You could work with all sorts of people, from friends and family to clients in your area.
10. House sitting
When you house sit, you’re taking care of someone else’s home while they’re away. This could be at a house near where you already live or maybe you fly to a fun vacation destination and watch their house there.
It’s your job to make sure everything stays safe and clean and that nothing happens to the home (such as a frozen water pipe bursts).
You might need to pick up the mail, water plants, or feed pets. Sometimes, people will ask you to stay overnight to make sure the house does not stay empty.
11. Sell at farmers markets
If you’re looking to make some cash, you can start selling at a local farmers market.
Some things that you can sell include fresh produce, homemade goodies, jewelry, unique crafts, or even baking cakes are great items. You’ll want to make sure your product and booth stand out, as there will be a lot of booths around you.
Shoppers at farmers markets typically pay in cash, so you can get paid quickly!
Note: To sell at a farmers market, you might need to get a permit. You can start by checking with your county health department and the United States Department of Agriculture (USDA) for rules. Every place has different laws, so it’s important to understand what applies to your situation.
12. Have a garage sale
Having a garage sale is a way to earn some extra cash, and you don’t need special skills to get started. Look around your home for things you no longer use or need, and these could be clothes, toys, books, or even bigger pieces like furniture.
Items sold at garage sales typically don’t sell for a ton of money, but it can be a great way to declutter while getting paid cash.
Weekends, especially Saturday mornings, are prime times for yard sales. Make sure to check your local weather forecast as a sunny day can lead to more foot traffic. Once you have your date, gather all the items you plan to sell.
Then, you’ll want to organize your items by category. For example, put all the kitchen items on one table and all the books on another. Price everything clearly – you might use colored stickers for pricing – to avoid confusion.
You can advertise your garage sale a few days before. You can do this by posting on social media (such as by sharing it in local Facebook groups), community bulletin boards, or local classified websites. Signs around your neighborhood can also help draw attention to your sale.
During the sale, you’ll want to have change ready for customers who pay with cash, and you’ll probably want to have a calculator handy if you’re not comfortable doing math in your head.
13. Tutoring
If you’re knowledgeable in a subject, tutoring can be a good job for you. This is a job where you help others, like kids or even adults, to understand things better.
As a tutor, you work one-on-one or with small groups to teach things like math, reading, specialty exams, or even foreign languages.
Harder subjects usually pay more than easier subjects, and you may be able to earn $25 or more per hour as a tutor. You may get paid after each tutoring session. Or, if you are a regular tutor for a person, it may be weekly or even monthly – it depends on the agreement that you have with the person you are tutoring.
14. Painter
As a painter, your job is to paint walls, buildings, and other surfaces.
Your job responsibilities may include preparing surfaces by cleaning and scraping, mixing paint to get the right color, and applying paint with brushes, rollers, or sprayers.
Back when we were selling our first house, we hired a solo painter to come in and paint all the walls. This is a job that you may be able to find as well.
15. Handyman
If you’re good with tools and fixing things around the house, you might think about working as a handyman.
This job involves fixing leaky faucets, patching holes in walls, or putting together furniture. People tend to need help with these small jobs and look for someone who can do them without too much fuss.
You can find handyman jobs on websites like Craigslist or by asking friends and family if they know anyone who needs help.
With the same house I mentioned in the previous section, we also hired a handyman to renovate our bathroom as well as do around 10 other smaller things around our house too. We actually found him through a family friend, and he did so much work for us. It was great!
16. Dance instructor
Being a dance instructor can be a fulfilling under the table job in some cases. You could work with students of all ages, teaching them how to dance or different dance styles.
Of course, you will want to make sure that you are a skilled dancer, as this is not a job that anyone can do.
So, do you have experience in styles like ballet, hip-hop, or salsa? Or something else?
You can start by giving classes in your community or looking for local studios in need of instructors.
17. Auto mechanic
Working as an auto mechanic could be a great under the table job for you, and there are always people who need work done on their cars.
You’ll typically charge less than if a person would be going to a car dealership or a car mechanic business. People would usually be looking to hire a cash-pay mechanic if they were wanting to save some money.
As a mechanic, you make sure cars are running smoothly. Your job might include changing oil, replacing brakes, and making sure the engine is in top shape. Of course, you need to know what you are doing, as people are trusting their expensive cars and their lives with the repairs and updates that you do.
Working like this usually means you have to find your own customers. Good places to start are local ads or online platforms like Craigslist (start by looking under the “gig” section).
18. Photographer
Becoming a photographer can be a fun way for you to earn money if you are good with photography.
As a photographer, you can decide to work as an independent contractor, which means you are your own boss. This might involve getting paid in cash or a check for your services.
The different types of photography you can get into include:
Portrait photography – You might take photos of people and families, capturing special moments. Families like to have memories of their loved ones, and they’re willing to pay you for this service.
Event photography – This includes taking photographs at events like weddings or birthday parties. People like to remember these big events and may hire you to make sure they have great photos to look back on.
Commercial photography – This is for businesses that need photos of their products, services, real estate, and more.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
19. Sell firewood
Selling firewood can be a way to make money, especially if you live in an area where wood is used for heating or camping. Homeowners in colder places are always buying wood for their wood burning fireplaces and stoves, so this can be a good way to make some extra money by selling truckloads of wood.
First, you need to get firewood. If you have trees on your land, you might be able to cut your own wood.
After you have wood to sell, think about how you will sell it. You can sell wood online on websites where people buy and sell things in your community. You can also have a place at your house where people come to buy wood from you.
If you don’t have trees of your own, look for jobs where you can gather wood. Some people will even pay you to take away old trees or wood piles they don’t want.
Note: I recommend that you always keep in mind to follow the rules about selling wood where you live. Some places have rules about moving firewood to stop bugs and diseases from spreading to other trees.
20. Junk hauler
Being a junk hauler might be a great fit for you if you don’t mind a bit of heavy lifting. People tend to hire junk haulers when they have big, heavy things that they want to get rid of after all.
As a junk hauler, you get to help people clear out unwanted items from their homes or businesses. These items could be anything from old furniture to broken appliances.
Your job will mostly involve picking up and removing junk. You’ll need to have a reliable vehicle, maybe a truck or a van, that can carry all the items. Sometimes, you’ll be recycling things or taking them to a landfill.
You can find junk hauling gigs on websites or by signing up with companies that look for contractors. These could be one-time jobs or regular work, perfect if you’re looking for a side hustle or even to grow your own junk removal business.
You’ll generally get paid after you complete a job and since it’s often under the table, payment is usually in cash. This means you get paid directly, with no checks or direct deposits.
We personally had to call a junk hauler when we had several pieces of rotten wood that we needed thrown away – it was several hundred pounds and extremely messy – not something that we wanted to mess with and we also wanted it gone right away. That same day, a junk hauler came by and took it for $125. We paid him cash and he took it to the dump for us. It was so convenient for us and good business for him.
21. Rent out a spare room
If you have an empty room at your place, you might want to think about renting it out. This can be a good way to make some money on the side without a lot of work.
I have had several roommates over the years. We would rent out our spare room to long-term renters and people that we personally knew (such as friends and my sister).
To find a roommate and make money from renting your place, you can tell people about it in different ways. You can share it on your own Facebook page, post an ad on websites like Craigslist, make a rental listing on Airbnb, and try other methods.
Frequently Asked Questions
When you’re looking into jobs that pay cash, also known as under the table jobs, you might have a lot of questions.
What are under the table jobs?
Under the table jobs are ways you can earn money that’s usually paid in cash and not recorded officially by an employer. This means no tax forms are involved and no taxes are taken out of your pay right away (but you should still pay them!).
Is under the table work legal?
Okay, this is a great question to ask. After all, this is a whole article on how to find under the table jobs. So, does that mean these types of jobs are legal?
Well, working under the table can be tricky when it comes to the law. Your employer might pay you in cash without giving you a contract. While it might seem straightforward, not reporting this cash income to the IRS is considered tax evasion. Earning cash itself isn’t illegal, but failing to report it on your taxes can lead to problems.
What are the positives of working for cash?
When you get paid under the table, you get to keep all the money you earn immediately. This kind of setup is nice for jobs like babysitting or doing yard work, and you don’t have to wait for a paycheck. But, remember, you still have to pay taxes! So, the main positive is that you are paid cash right away, instead of having to wait a couple of weeks.
What are possible risks of working under the table? Is it OK to get paid under the table? Can an employee get in trouble for working under the table?
Working under the table can be risky. If the IRS finds out you’re not reporting your income, both you and your employer could face penalties. Also, you won’t have official records of your income, which can make it tricky if you need to show how much you earn for things like loans or renting a place to live.
What jobs can be paid under the table?
You can find jobs like babysitting, pet sitting, house cleaning, or gardening that pay under the table. These jobs usually pay cash because they are informal and may not involve paperwork. There are many other jobs that I didn’t even get into in the list above, such as becoming a personal assistant (doing things like grocery shopping and setting up appointments), personal trainer, graphic designer (making logos and more), and so on.
How do I find under the table jobs? How can you find local jobs that pay in cash?
To find these jobs, you can start by asking friends or neighbors if they need help with anything. You can also look at community bulletin boards or online classifieds for local job opportunities.
How do I ask for payment under the table?
If you’re looking for cash payment for a job, be honest and up front with your employer. Tell them you prefer cash payment, but realize that it’s usually smaller gigs that will pay cash and not more regular job opportunities. Keep in mind, though, that all income should still be reported for tax purposes.
How can you find jobs that pay under the table on Craigslist?
On Craigslist, you can filter your job search by using keywords like “cash pay” or “under the table.”
Under the Table Jobs – Summary
I hope you enjoyed this article on how to find the best under the table jobs.
Getting paid cash right after you complete a job is nice – you don’t have to worry about waiting for a payment and you can pay your bills right away.
There are many ways to find under the table jobs, such as by asking people that you know or by looking at gig/job websites in your area.
Now, there are pros and cons to being paid under the table. Being paid under the table means you get cash quickly. However, there are risks like missing out on legal protections and benefits, and if not reported, it might lead to tax evasion consequences.
So, when working under the table, it’s important to keep track of how much money you make. After all, you’re responsible for your own records and taxes, even if you’re paid in cash.
So, you do still need to pay taxes on the income that you make.
When you work under the table, you’re often working part-time or full-time but without the usual job benefits. If you’re planning ahead, think about how these jobs might affect your career later on. Eventually, it may be a good idea to find a job with more regular benefits where you pay taxes straight out of your income.
What do you think are the best under the table jobs?