In Realtor.com’s 4 Ways to Finance a Home Improvement Project without Draining Your Bank Account, Atlas associate broker Jordan Terrell lends his expertise. The leader of the Terrell Group comments include:
4. Short-term rental
This option doesn’t require equity or cash, just a little extra space in your home and a willingness to be a property manager. To generate some cash, consider renting out your house or a spare living space (e.g., the basement or an in-law unit) as a short-term rental on Airbnb or VRBO.
“Many of the homeowners I’ve seen do this can generate around $600 to $1,200 per month, depending on the location,” says Terrell.
It’s a relatively quick way to come into a chunk of cash that you can use for a renovation. However, you’ll be responsible for making the property livable and managing guests, which can be a tall order.
Most short-term rental sites have hosting standards that you must meet, which include making sure you’ve provided essential items (e.g., toilet paper, soap, and linens) and are prepared for an emergency. Also, you may have to apply for permits (read: pay fees) or obtain insurance in order to legally rent out your home—even if it’s just for a few days.