“We list spaces such as driveways, empty lots, and fenced yards on our properties that aren't in use. Once listed, renters book monthly, and we receive automatic payments — no showings, no maintenance, and minimal communication,” Nick Copland said.
Here’s what you need to know about how to generate this form of income, including how to get started, and the risks and benefits to take into consideration.
The paradox of passive income
The Coplands have found a niche in the mid-term rentals market, renting properties to professionals like travel nurses and consultants who may only need a six-month stay, for example. They started out by renting a part of their own home, reinvested the profits, and grew their business to 13 properties. In addition to these rental properties and their parking spaces, the couple also make money in rental arbitrage — leasing a property through their business, then subleasing it for short- or medium-term rentals for a profit. Their passive income streams have allowed them to quit their 9-to-5 jobs to focus on a coaching business, and they now claim to work about 25 to 30 hours a week.
“Working with Shannan has been one of the best parts of this journey. We balance each other's strengths and handle operations together; I handle sales and finance, and Shannan handles marketing,” Copland said (2).
It’s more attractive than ever to search for passive income opportunities as the cost of living continues to rise. However, by definition, these opportunities require you to already hold valuable assets. The U.S. Census Bureau counts passive income as that earned through dividends, interest, or rental properties, and it’s concentrated among households who already have high incomes.
Approximately 20% of households in the U.S. today are earning passive income, to the tune of $4,200 per year on average (3).
The Coplands’ method of starting small with your own means can help you to develop these income streams and find ways to grow them.
How you can find income streams
Truly consistent passive income requires assets, and starting with a side hustle can help you get there. Some popular side gigs include affiliate marketing, selling photography or art and design templates online, or tapping into your own expertise by creating an online course to generate income.
