Updated: Jul 18
Do you have any empty space in your attic, basement, or garage? Did you know that you can actually monetize this open space in your home in order to build a passive income stream?
That's right! Thanks to sites like Neighbor, you're now able to connect with and rent out excess space in your home to store other's possessions. Think of it as Airbnb, but for storage.
Here is a review of Neighbor.
Neighbor can be an excellent way for those with excess space to build a passive income stream and earn up to $500 per month - or more!
What is Neighbor?
Neighbor.com is an online marketplace that partners those that need to rent space for their possessions with those looking to make a little passive income. Here's how it works.
Those looking for places to store their excess possessions download the app and look for arrangements in their area. On the flip side, those with excess space in their attic, basement, garages, or shed can use the app to rent out space to those that need it.
Founded in 2017, Neighbor was created with the mission of giving people an accessible alternative to storing their items in a storage locker somewhere else.
This review will cover making money on Neighbor.com.
What type of storage space can you rent out?
Neighbor allows you to rent out a variety of spaces, including:
Street parking (if allowed in your area)
This wide array of storage options opens up the potential to make money regardless of how much open space you may have around your house.
How to make money on Neighbor
Making money on Neighbor is actually a really easy process. To get started earning some passive income, just follow these three simple steps:
Create an account
Create a listing
Rent out your space
1. Create an account
Your first step is to create a Neighbor account. All you'll need to get started is some personal information, such as your name, email address, and address.
Simply head to the Neighbor website, click "Become a Host" in the upper right-hand corner, and register your account.
2. Create your Neighbor listing
After you've created an account, you are ready to post your listing on Neighbor. To create a listing, just click the "List my space" button in the top right while logged in. From here, you'll need to answer a number of questions about your space, including:
What type of space you're listing
Adding pictures of the space
What rate you will charge
During the listing process, you will be asked to write a description about the space you're listing. It is a good idea to be creative with your listing. Tell your prospective renters how many square feet the space is, what will/won't fit, and be witty about it.
Make people want to rent your attic, basement, or garage!
After you've completed your listing, Neighbor will complete a quick review process to ensure there are no inconsistencies or issues with your listing.
You should beware that the Neighbor listing process is rather in-depth, partly to limit any potential of misunderstandings between the renter and homeowner. For example, when you create your listing, you'll be able to note the following customizations and details about your space:
Climate controlled space (heat or air conditioning)
Has security camera
Smoke/carbon monoxide detectors
Additionally, you will provide your address, though your renters will not see this until after you've already confirmed their reservation.
4. Rent out your space
Now that you have created an account and completed your listing, you're ready to accept rental offers as they come in. Most Neighbor members will get their first rental request within the first month after their profiles are approved and they formally join the community.
How to price your Neighbor rental space
The only true remaining obstacle is setting the price of your Neighbor rental. And it can be overwhelming. Price your Neighbor rental too high and you're unlikely to get many renters. Price your space too low and you may leave hundreds or thousands of dollars per year on the table.
Neighbor provides you with two pricing options - smart pricing and fixed pricing. With a fixed pricing model, you can set your own rates based on what you want to rent your space for.
A safer bet may be to use Neighbor's proprietary smart pricing model, which is basically an algorithm that will price your rental based on the details you've decided. It aims to maximize your earning potential.
I do recommend the smart pricing model to my readers since it is more hands off and really opens up the ability to earn passive income.
With this in mind, if you decide on fixed pricing, I recommend that you take the following two tips in order to assure your listing is competitive:
Do competitive research: Search Neighbor as a prospective renter and see what the going rates are for basements, attics, garages, and other spaces in your area.
Price high enough to make it worth it for you: While pricing your rental in line with neighborhood averages is encouraged, you don't necessarily have to be the cheapest option in your area. You want to make a profit and price high enough to make the rental worth it for you too.
Another popular tidbit on Neighbor pricing is that it is commonplace to offer 50% off the first month in order to entice renters more quickly. So if you're okay with netting a little less money over the first month, it can absolutely be a good idea.
As an online platform, Neighbor does assess some fees in exchange for finding you renters. As of February 2023, Neighbor will charge hosts a flat 4.9% processing fee plus $0.30 for every confirmed reservation.
For instance, if you're able to earn $200 per month in revenue, you'll be subject to $9.80 in processing fees, plus any applicable reservation fees.
How much money can you earn with Neighbor?
The amount of money you can make annually can vary largely depending on a number of variables, like your space's specifics and location. Generally, though, the average "landlord" can expect to earn between $50-$500 per month (that is $600-$6,000 per year!).
From my personal experience and research, I've seen the following spaces priced within these monthly ranges:
Parking space: Up to $300 per month, particularly if in a city
Garage: Up to $700 per month, depending on location, cleanliness, climate control
Attic: $100-$400, depending on ease of access
Basement: $150-$500 (at the higher end with a bulkhead or other access)
As a reminder, Neighbor's smart pricing tool is a great place to start!
Maximize your earnings
To truly maximize your income potential through the Neighbor app, I recommend that you take a few extra steps to really help you stand out from the crowd. You want to come across as trustworthy, kind, and a people person through your profile in particular.
To help you accomplish this, remember to:
Add a profile picture
Spend time writing a good profile bio
Good, well-lit photos of the space
A good (and honest) description of your space for rent
You may also consider doing some basic marketing to advertise your space. Share the news on your social media channels and use word of mouth to see if you can find a renter through your network.
It is all about building trust and engagement with your prospective clients.
Neighbor frequently asked questions
At this point, you probably still have some outstanding questions. Here are some of the most popular questions I'm asked regularly.
1. Is Neighbor.com legit?
Yes, I can confirm that Neighbor is a completely legitimate way to make some extra money. They are a well-established company and offer a good amount of protection and insurance options for renters and listers alike.
2. What security and safety options are offered?
As I've alluded to throughout this review, Neighbor offers a number of security options designed to protect both renters and listers alike. For example, hosts automatically receive $1 million of liability protection for each reservation made.
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