Struggling to Keep Up With Your Housing Costs? 3 Ways You Can Monetize Your Home

Take these steps if your housing expenses are becoming too much.

If you bought a home in the past year and are now struggling to keep up with the expenses involved, you may be in good company. Recent home buyers have faced much higher mortgage rates than those who bought a home in 2020 or 2021. And between that and inflation, which was still up 6% on an annual basis as of February, you may be struggling to keep up with the cost of everything from property taxes to maintenance and repairs.

Of course, there's a danger in falling behind on your mortgage payments -- losing your home, eventually. And falling behind on other bills could damage your credit score, severely limiting your borrowing options. So if your housing expenses are getting to be too much, it could pay to use your home as a means of generating income to help offset them. Here are a few options to look at.

1. Rent out a room or area of your home

There may be an area of your home that could function as its own separate rental unit. If you have a finished basement with a bathroom and small kitchen or kitchenette, that could be an option. Renting out a portion of your home might mean giving up some usable space, and also, having to deal with the privacy issues that ensue when you have a tenant living under your roof. But the steady income you collect might really help you manage your housing costs.

2. Rent out your home on a short-term basis while you're away

If money is tight and you're struggling to pay your housing expenses, then there may not be room in your budget for travel. But you might be away from home for a period of time to see family, or to fulfill another obligation. If so, consider renting it out on a short-term basis. This option works especially well if your home is located near a popular beach town, ski resort, theme park, or any notable attraction.

3. Rent out a parking spot in your driveway

If you live in an area where parking is hard to come by, and you don't have a car of your own or have a two-car driveway, you might be able to enjoy your share of rental income without having anyone occupy your home's interior. That's because you can rent out a parking space in your driveway instead.

For many people, there's nothing more frustrating than coming home after a long day of work and having to circle the neighborhood for 20 minutes finding a place to park. As such, you may be surprised at how much monthly rent your parking spot is able to command.

It's easy to see why so many new homeowners are having a hard time keeping up with their costs. Rather than risk falling behind on your bills and housing expenses, use your home as a means of generating income, even if it means having to inconvenience yourself a bit for a period of time.