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Additoinal Income Opportunities

Passive Income Idea: 6 Things You Can Rent for Money

By Alexa Mason • March 15, 2016

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If you've thought of starting a semi-passive income business rentals could be a good option. Here are six things you can rent for money.One of the financial goals I continually strive for is to create multiple streams of passive income. Passive income is awesome. But as awesome as it is there’s a huge debate of what it actually means.

According to Investopedia passive income is:

“Earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not materially involved. As with non-passive income, passive income is usually taxable; however it is often treated differently by the Internal Revenue Service (IRS).”

To me passive income is something you can earn by putting in a lot of upfront work. (Like a book, for example.) Or passive income can require an upfront monetary investment that allows your initial investment to earn more money. (Like investing in the stock market.)

As you can see renting things can could easily become a great semi-passive income business that falls into the latter of the two categories.

Renting as a Passive Income Business

Renting is a tried and true way to earn passive income with rental houses being the most popular. The amount of involvement you want in the business and the amount of capital you have to put up will determine what items would best work for you in a rental business capacity.

Things You Can Rent for Money

To get the ideas flowing here are six different things you could rent for passive income. Some of these will require a lot of capital while others will require none.

Houses – Having portfolio of rental house is a great way to build up passive income. You could even build this big enough to replace your income or help fund your retirement. The downside to rental houses is that it can take quite a bit of capital to get going. The upside is that rental house don’t require day to day involvement.

Dresses – Renting dresses to bridesmaids and formal dance goers could be a viable business option. This business would require you hiring an employee to run it or you having a lot of involvement yourself. To get started you would need to have a large inventory built up.

Tools – Nobody wants to go out and purchase an expensive tool that they’ll only use one time – they’d rather rent. If you already have a tool collection built up this could possibly be a good fit.

A Spare Bedroom – This option is great for anyone with a spare bedroom as it doesn’t require any capital to get started – simply rent out your room (to someone you can trust and stand living with) for extra passive income each month.

Tents – Tents that could be used for parties, weddings, family reunions and more could be a fantastic option that won’t require too much of your time or a large amount of capital.

Kids Party Supplies – Parents want to go all out for their kid’s birthdays. That’s what makes renting kids party supplies, like bouncy houses, a potentially profitable idea.

What Else Should You Know

Before starting your own rental passive income business model it’s important to consult with an accountant who can guide you on any legal actions you’ll need to take (like getting a business license and paying taxes) and insurance policies you might need. The legalities are going to vary state to state and according to how large you want to grow your business.

Have you ever thought of starting a rental business?

Alexa Mason
Alexa Mason

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.singlemomsincome.com.

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