When you need the extra cash, most financial experts advise you to withdraw money from the equity you have in your assets. Typically, that means looking at the biggest asset most people own – their home. But what if you are unable to sell or get a home equity loan?

Believe it or not, the value of your home isn’t just about your equity. Anyone with a spare bedroom has access to a source of income that requires little effort to collect. By renting – year round or nightly here and there – you will start generating passive income almost immediately.

Here’s why you should consider it, and everything you need to know before you get started.

Why this is a good idea

If you have a spare bedroom that you rarely use, renting it part-time can fetch hundreds or even thousands of dollars a month, especially if you live in a desirable neighborhood or in a prime location for when events happen in town. Many landlords or contractors find that renting a room to strangers can easily cover their rent or mortgage.

This extra money can be used for pay off the debt, save for retirement, or buy a second home. A Airbnb rental calculator shows that a one-bedroom apartment in Lynchburg, Virginia would rent for about $ 750 per month or $ 9,000 per year. A few hundred dollars a month could be an adequate safety net or increase your budget.

How to create an attractive ad

Make your room stand out from other listings with these best practices:

• Decorate. No one wants to live in a room with bare walls and floors. Outfit the room with basic items like a mirror and framed posters. A decorated room will photograph better than a sparse room and could bring in more money in rental income.
• Furnish the bedroom. Having a furnished space will allow you to charge more, since you can accommodate both vacationers and people looking for a longer stay. If they have their own furniture, you can sweeten the deal by sharing part of your basement or shed as storage space.
• Take good photos. Some services, like Airbnb, offer free photographers who will take professional photos of your pad. For others, like Craigslist, you will need to film your own. It may be worth hiring a professional photographer if you don’t have access to a decent camera. Remember, these photos will be the main selling point of your ad and photos are a one-time expense.
• Describe the surroundings. Each district has its own advantages, which you must mention when registering. If you live in a quiet suburb, talk about how peaceful it is to sit on the patio after work. If you live in a bustling downtown loft, mention the activities available a few blocks away. David Rae, CFP ™ and president of DRM Wealth Management, rented his extra room for seven years and said he indicated which bars and restaurants were within walking distance, “which is a good draw for newcomers to the city.”

Best sites to list your room

If you’re not sure where to start when it comes to listing your room, here are three popular options so you can find the right match:

• Facebook: Those who are worried about sharing their home with someone they barely know might consider listing their apartment or house on Facebook. Rae said that’s how he found all of his roommates. “That way everyone is at least a friend of a friend,” he says
• Craigslist: Craigslist is one of the most popular options for owners because registration is free and you can renew the registration at any time. That said, it’s important to be aware of potential scams, so be aware of them when looking for a good tenant.
• Airbnb: Since owners are allowed to rate renters on Airbnb, you’ll be able to see reviews left by people they’ve rented from before. This scoring system allows you to sort through potential tenants and determine the best fit – instead of finding out the hard way.

Have you put a room up for rent? What are your tips for those who see it as an additional source of income? Let us know in the comments below!

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