Homeowners can unlock additional income through their homes while staying compliant with local zoning and insurance requirements, noted a property expert.
Bradd Bendall, national head of sales at BetterBond, said the house one calls a home can be so much more than the place where they live.
“A home can also be a source of additional income, especially during challenging financial times.”
“It is possible to use your home to bring in some extra money that you can use towards your bond repayments or to contribute towards household expenses,” Bendall stated.
He noted that if one has a spare room or space on their property, they can consider getting a tenant.
He added that this works well if the room or space has its own entrance so that both parties enjoy some privacy and freedom of movement.
Where the property has a small cottage or flatlet, this would be an ideal option.
Student accommodation is always in demand, so those who have a room or flat on their property and live close to a tertiary institution could derive reliable income during the academic year.
Bendall noted that unused spaces like a garage or driveway on the property can be offered to neighbours who may need additional parking or whose properties may not have space for their cars.
“In Clifton, where parking is a luxury, it was not unusual for parking bays of 16 square metres to sell for R2.5 million, he said.
“An empty garage can also be rented as a storage space,” added Bendall.
A recent study on the economic impact of Airbnb in Cape Town found that 49% of hosts surveyed saw their Airbnb income as an “economic lifeline” that helped them afford their homes.
Half revealed that the additional income helped them keep up with the rising cost of living.
With the launch of Airbnb Rooms, it is now possible to offer just one room in the home for short-term rental, if it meets certain criteria.
These include a private bedroom with a door, access to a private or shared bathroom, and access to at least one common space such as a garden or kitchen.
“Those hosting guests in their home for income must let their insurance company know so that they can be properly covered in case of theft or damage,” advised Bendall.
This means instituting hospitality risk insurance that will allow for hosting-related claims.
He said that a home with distinctive architectural features or is set in a sought-after location, could be rented as a venue for events, weddings or even film shoots.
“Historical homes are also sought after for films or magazine shoots. Do your research and register your home with a reputable location agent,” said Bendall.
“Before opening your home to film crews, be clear about which parts of your home will be used and the duration of the shoot so that you can minimise disruption. Having your home as a location can be a lucrative source of additional income.”
Bendall said many people have shifted to remote working, and most homes have space for a home office.
“You just need good internet connectivity or Wi-Fi, decent lighting, and a dedicated space to create a home office.”
He said having a solar system is also a good idea because this minimises the risk of disruption from load shedding and also saves on energy costs.
Bendall said working from home or running a small business does not require special permission from the municipality.
There are also tax benefits associated with using part of that home for business purposes.
“So-called ‘micro businesses’ do not need special permissions to operate in a residential zone, he explained.
These include small bed-and-breakfast establishments, hair or beauty salons, crèches or daycares with a limited number of children, and medical practices.
Where one would like to open an independent or cottage school accommodating six or more children on their property, they may need to change the zoning to allow the property to be used as a place of instruction.
With a few modifications, one’s home can be used for a variety of activities or services.
Home-based yoga studios or fitness centres are popular with those who prefer smaller group activities.
“If a homeowner has a well-sized heated or indoor pool, they could offer swimming lessons. Always be mindful of the applicable zoning and land-use regulations,” suggested Bendall.
While within general residential zonings there are controlled opportunities for home businesses, larger business operations may require a consent use or temporary departure from the municipality.
“When deciding whether to run a business from home, consult with your local district planning office about the necessary permissions and zoning regulations. You will need to take factors such as parking and possible traffic congestion in a residential area into account,” he said.
In June 2023, the Human Sciences Research Council (HSRC) published an article titled “Small-scale rental housing: an impact story”, by then senior research specialist in the HSRC’s Equitable Education and Economies (EEE) division, Dr Andreas Scheba, and Professor Ivan Turok, also a distinguished research fellow in the HSRC’s EEE division.
The research revealed that the growth of small-scale rental housing-especially in South Africa’s larger cities-offers enormous opportunities, despite its informal and, in many cases, unauthorised character.
“Small-scale rental housing addresses some of the country’s biggest development challenges through delivering affordable rental accommodation, stimulating local economic development and employment, and promoting social transformation,” the research revealed.
“Homeowners, many of whom once received a government-subsidised house, and entrepreneurial micro-developers are investing millions of rand in constructing higher-quality rental flats in their backyards, or across entire properties.”
“This is taking place without any direct government support. In fact, until recently, all spheres of government have largely neglected this phenomenon, thus inadvertently contributing to its largely informal, unauthorised nature and associated drawbacks,” it revealed.
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