How More Older Adults Are Turning Their Homes Into Income Streams
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How More Older Adults Are Turning Their Homes Into Income Streams By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: How Downsizing Can Save You $1,000 a Month The Rise of the 'Digital Nomad' Retiree Lifestyle This Simple Spreadsheet Could Change Your Financial Life Retirement Hobbies That Can Actually Make You Money Why Your 401(k) Match Could Be Worth More Than You Think See full bio Published: Dec 16, 2025 4 min read Getty Images A house can be more than just a place to live. With high costs of living, some older adults are choosing to turn their homes into an income stream. There are several ways to do this, and they can pay off. You may be able to generate enough cash flow to help cover mortgage payments, utilities and other expenses. Read on for some of the strategies homeowners use to turn their properties into sources of income. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take AdvantageSide Hustles You Can Do In Your Spare Time 3 ways to generate income with your home A home is the largest investment most people make, but many homeowners miss out on the potential cash that their homes can offer. Here are three strategies you can use so you don’t miss out. Save Smarter: Take control of your money with the Rocket Money budgeting app, one of Money's favorites 1. Short-term rentals Platforms like Airbnb make it easy to list all types of homes — from sprawling houses in the suburbs to apartments in the busiest cities to cabins in the woods — for short-term rentals. While some people buy homes specifically to rent them on platforms like Airbnb, you can also list a spare room or basement suite. That way, you still live in your home while having a guest. You can even block certain days on the rental platform if you want the extra space available to welcome your family and other visitors. This strategy can work well for new empty nesters who want to stay in their current residence but have a lot of empty space. However, check your local laws and consider setting up security features to keep you safe. Gold Offer: Sign up with American Hartford Gold today and get a free investor kit, plus receive up to $20,000 in free silver on qualifying purchases 2. Get a home equity conversion mortgage (HECM) Home equity conversion mortgages (HECM) is a type of reverse mortgages that lets homeowners who are age 62 or older convert their home equity into cash. Unlike with a traditional mortgage — where you make monthly payments to chip away at the loan — you pay back the loan in its entirety when you sell the home, pass away or no longer use the home as your primary residence. HECMs are backed by the federal government, and you’ll need to meet with a U.S. Housing and Urban Development counselor before you can move forward. There are various rules you should review before getting an HECM, like that you have to keep the home in good condition. A home equity line of credit (HELOC) is another way to tap your home equity, though these aren’t specifically designed for older adults like HECMs are. Extra Money: See how you can get up to $1,000 in stock when you fund a new active SoFi invest account 3. Build an accessory dwelling unit Older adults with bigger budgets can consider building an accessory dwelling unit on their property. It’s a detached unit that can provide rental income (and can act as a living space for visitors or, in the future, a caregiver). An accessory dwelling unit requires an upfront investment, time and effort. But if you’re interested in renting out your space without having to actually share the space with guests, it may be worth considering. This unit may also be suitable for long-term tenants, which makes the monthly cash flow more predictable. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take AdvantageSide Hustles You Can Do In Your Spare Time