The Ins & Outs of How to Create a Successful Income Generating Space
Over the last decade, innovative community-based marketplace platforms have transformed the global economy. Indeed, the rise of the so-called “sharing economy” led by players such as Uber, Lyft, Airbnb, PoshMark, Tradesy, Postmates and others, has unleashed an innovative business model that connects consumers directly with individual service providers.
Beyond the clear cost benefits to consumers — for example, booking a 3 or 4-star hotel in Manhattan can cost around $350-$400 a night and sometimes significantly more, while an upscale Airbnb nearby can cost 25-50% less — the sharing economy has opened the door for individuals to generate a significant and sustained income stream. At the same time, it has empowered them to have enjoy a level of control that is frankly unthinkable with a conventional employment situation. They can choose when they work, how much they work, how much they make, and in some cases even where they work. This is a far cry from the nine-to-five experience state Brett and Ashley Nobles, the founders of Your Income Space – a platform that teaches budding entrepreneurs how to create profitable income streams by leveraging their unique spaces and turning them into profitable location rentals.
However, despite the fact that the sharing economy is massive and growing — The Brookings Institution predicts that the size of the sharing economy will surge to a whopping $335 billion by 2025 — there is one highly profitable and easily accessible community-based marketplace niche that is flying under the radar: creating a successful income generating space.
An income generating space is an apartment, home, conference room, fitness studio, art gallery, or any other space that is made available for daytime bookings, such as photo shoots, parties, workshops, events, off-site meetings, rehearsals, group meet-ups, performances, proposals and co-working. What’s more and quite interestingly, during the coronavirus pandemic, a growing number of professionals and job seekers are fleeing their cramped home office, and flocking to these pleasant spaces to engage in video conferences — but without the fear and aggravation of being interrupted by screaming kids, barking dogs, noisy neighbors, and so on.
A Win-Win Arrangement
Professional deal makers, negotiators, arbitrators and mediators know that the best arrangements are those in which everyone wins, and nobody loses — and creating an income generating space is certainly one of these mutually delightful situations. Individuals and groups who need temporary space can find it quickly, easily and at very affordable price. And on the other side of the equation, individuals who have excess space can monetize it vs. letting it sit empty. Everyone wins, and nobody loses.
How much can individuals earn from renting out space that they aren’t using? As with many of life’s worthy questions, the answer is “it depends.” Individuals who wish to dabble in this income generating niche — for example, by renting out their beautifully finished basement to workshop trainers, or their elegant terrace to wedding photographers — can significantly boost their income. On the other end of the spectrum, individuals who want to dive deep and rent multiple properties (which are then, in turn, rented out to clients by the hour or day) could generate more than six figures annually.
The Legal and Administrative Stuff
With all of this in mind, it is worthwhile — and indeed, necessary — to spend a moment on an aspect that everyone who is considering creating a successful income generating space: the legal stuff.
Here are the basics: like any other legitimate commercial activity, the profit earned through space rentals is subject to tax (the exact amount depends on the jurisdiction). In addition, it’s essential to have the right type and amount of insurance coverage and keep an organized set of books. The good news is that while all of this is important, it is not difficult. Individuals who don’t want to spend their time in this area can easily find specialists who will take care of everything, down to the last dotted i and crossed t.
Real Estate Wizardry is Not Required
Perhaps the most compelling piece of the income generating space puzzle, is that people who want to procure and monetize short-term rentals so they can offer a portfolio of sought-after spaces don’t need to have years of in-depth real estate experience. The only thing that they need is to enroll in a comprehensive and structured program, such the popular course called Six-Figure Location Rental Business, to master the fundamental ins and outs such as assessing a potential space, developing a marketing strategy, the legal and administrative stuff (as discussed above), decorating and staging, and building a reputation.
“In 2015, we were newly married and dead broke and on the verge of filing for bankruptcy,” shared Brett and Ashley Nobles, the power couple behind the highly rated Six-Figure Location Rental Business program. “To make things worse, we were both stuck in jobs that we hated, and it was taking a toll on every aspect of our lives. They say that necessity is the mother of invention, but we think in our case it may have been desperation, because right before we hit rock bottom, we realized that the solution to all of our problems was staring right at us in the face. Specifically, the expensive liability that was primarily responsible for our financial woes — better known as our home — was actually a short-term rental income money-making machine.”
Continued Brett and Ashley, who launched YourIncomeSpace.com in 2018: “Within a year, we made more than enough to quit our hated nine-to-five jobs, dug ourselves out of massive debt, and today we have multiple properties that consistently generate half a million dollars a year — and all without owning a single one. Now, the only board meetings on our schedule are surf lessons, and our office is anywhere that has a good Wi-Fi connection. And instead of dreading our jobs, we are inspired and excited to help people from all backgrounds and walks of life benefit from our experience and journey, and transition from financial despair to financial freedom. We did it, and so can they.”
JR Dominguez is the technology, finance and music editor for MiLLENNiAL. When he's not writing, you can find him day-trading stocks, playing video games, or composing commercial scores.