Airbnb made it easy for you to earn income by hosting travelers as overnight guests, but did you know there’s another way to generate cash by renting your property for events? More families are turning to this money-making idea, allowing their spaces to be used for celebrations ranging from backyard weddings to photo shoots and catered dinner parties. If your home has the right features, it could become a small event venue and a profitable side hustle. Before you jump in, here’s what you should know about legal requirements, insurance, and pricing your property as an event space.
Renting your property for events: beauty plus functionality
You may have a spacious backyard with a luscious lawn, a shady arbor, overhead string lights, a firepit, and a built-in outdoor kitchen. You enjoy it as a family, but if the size and accommodations make it a great small venue for events, you may have a moneymaker.
Other settings with appeal:
- An idyllic garden with a waterfall is perfect for photo shoots, commercials, and small weddings.
- Large outdoor patios with tables are terrific for hosting catered dinner parties.
- If you have acreage, you can host larger events with plenty of parking for guests.
- If the property is rural, you could offer it for overnight camping.
Considerations before renting your property
Before putting the word out about your availability, here are important considerations:
- Check local zoning ordinances on event size, the number of cars permitted to park, and any required permits for hosting an event by crowd size.
- Causing a traffic jam of parked cars in your neighborhood will be very unpopular and may violate ordinances and HOA rules.
- Noise ordinances may limit the hours during which you can host events with loud music and a chatty crowd.
- Safety is paramount. If you have a pool, always hire a lifeguard to be on duty. Study your property for any hazards.
- Garbage—lots of it—may overwhelm your residential garbage cart and leave you with extra charges, not to mention your neighbors’ ire.
- Your homeowners’ insurance probably won’t cover accidents happening when you are receiving payment to use your home. Consult your insurance agent for enhanced coverage.
- If alcohol will be served, check whether special permitting is required. State laws are strict regarding alcohol sales.
- Will smoking be allowed?
- Money received from this venture will be taxable as income and may also be subject to local taxation.
How to price your property as a small event venue
What is the right price to charge for hosting an event? Research known venues nearby that are professionally owned and operated. You can price your space below what those locations charge because you are doing this part-time and are not a professional.
Related – Could Your Home Be a Movie Location Rental?
