3 Passive Income Streams You Can Start for Under $100
Building passive income does not always require a large amount of money up-front. There are several ways to get started with $100 or less while creating an additional source of income over time.
Here are three low-cost ideas to put your assets to work without putting a major strain on your budget.
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Rent Unused Space for Storage
Cost to start: $44.98 for a security camera and fee for insurance protection
Time commitment: Occasional checking of security camera, creating a rental agreement and meeting with customers
Risk involved: Security issues and removal of items if abandoned
About 33% of Americans currently rent space for extra belongings in a self-storage facility. Another 18% expect to use self-storage in the future. According to StorageCafe, renting a 10-by-10-foot unit costs an average of $120 per month.
If you have an empty shed, utility building, garage, storage room or closet, back lot or other unused property, then you have a chance to make extra money. Charge a fee that is 30% to 50% less than the average rental fee in your area to be reasonable and you can still make money. If renting out a space that compares to a 10-by-10-foot unit (average cost per month is $120), then 30% less than is $84 a month and 50% less is $60 a month. Be sure to create a rental agreement to avoid potential problems like late payments, non-payment or clean-out fees.
Having multiple spaces to rent could bring in several hundred dollars in additional income. Large items like RVs, boats or vehicles could require more room and you may want to invest in a security camera to monitor the area. The indoor/outdoor Wyze Cam v4 costs $44.98 at Home Depot, for example.
Sites like Stache and Neighbor connect people who have extra space possible renters. The platforms can handle payments and communication between both parties. Some also provide insurance protection for a fee.
Equipment or Tool Rental
Cost to start: Cost of insurance protection and money for future repairs
Time commitment: Maintaining and repairing tools and equipment, creating a rental agreement and meeting with customers
Risk involved: Possibly repairing or replacing tools and equipment
In 2024, the global tool rental market was valued at about $11.72 billion, according to Fact.mr. The market is expected to grow at an annual rate of 4.1%. By 2036, its value is projected to reach nearly $19 billion.
Homeowners may prefer to rent tools they only need occasionally instead of spending money to buy them. Rent out your unused tools or equipment such as power washers, weed eaters, snowblowers, gardening tools or lawnmowers as another way to earn extra income. You will need to keep your tools well-maintained, have the ability to make repairs if needed and possibly have insurance to replace the item.
Find people in your area who need tools by posting what you have available on neighborhood apps like Nextdoor or social media.
Rental sites are another option for connecting with people looking for equipment, making the rental process easier by handling payments and communication. The rental fee you charge depends on the type of tool or equipment — e.g. RentMyEquipment lists power washers ranging from $30 to $200 or more per day, depending on the size and capabilities. It's also a good idea to have a rental agreement that states fees for broken or misplaced tools and equipment.
Spare Bedroom Rental
Cost to start: Cost of insurance protection and money for future repairs
Time commitment: Maintenance and repairs (if needed), creating a rental agreement and meeting with renters
Risk involved: Possibly repairs and removal of items if renter leaves unexpectedly
Turn a spare bedroom into extra monthly income by renting it to a roommate. Having a written agreement in place can help determine what responsibilities are the renters (household expenses like utilities and groceries). It also can keep additional costs from cutting into your rental income.
List your room for free on sites like SpareRoom, Roomgo, Craigslist or social media. According to Shopify, a spare room could earn anywhere from under $500 to over $1,500 a month, depending on rental rates where you live.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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