Rent out your spare room to create your passive income

If you have any spare room in your house, why not consider renting it out so as to create yourself a passive income? In Singapore, one room can be rented out from $400 to $800 depending on the location and what are provided by the landlord.

Imagine that you are able to rent out your spare room for $550. Minus away the addition cost on utility bill due to additional tenant in your house, you should get around $500 per month or $6000 per year. This money can be saved up, invest in stocks, or even help you in term of monthly family expenses. If you are able to invest $6000 per year on quality stocks with high dividend, you should be able to get better return than just pure saving.

So why waste your spare room where you can create wealth from it? Of course, some of you might feel lack of privacy after renting out your room. So if that is a concern to you or your family, then don’t rent out any room of your house. In my opinion, that shouldn’t be not a concern to me. If there is any private thing that need to be done in the house, just lock up the room will do.

If you decide to rent out a room, make sure you do it legally. You always engage a housing agent to look for your legal tenant. If your location is good, the room will be occupied within a few days. That is from my own personal experience.

Lastly, the faster you rent out your spare room, the faster you create your passive income! So what you are waiting for?