Passive income is always a great way to supplement your main source of income and earn more money each month, and many people use it to retire early. That said, you don’t have to stop generating passive income after retiring. In fact, most retirees have even more time to spend managing alternative forms of income than they did while they were working.

This article will cover some of the best ways for retirees to earn substantial passive income and continue to make money throughout retirement. Once you take the time to set them up, these ideas offer a surprising amount of income and require very little ongoing work.

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Renting Out Space

Renting out space is one of the simplest strategies for adding passive income, and many retirees have extra rooms in their homes. Depending on your location and the size of the space, you could earn hundreds of dollars per month by renting out a single room.

Websites like Airbnb are the most common way to rent out space as a secondary source of income, and they facilitate important aspects of the transaction like payment and vetting tenants. Even small rooms can be worth a lot of money if you live close to a major city.

Renting Out Storage

While most people think of short-term tenants when they think about renting out space, you can also earn money by renting out extra space for storage. Storage space typically doesn’t demand as much money, but there are a few reasons to consider this approach.

The most obvious benefit of renting out space for storage is that you don’t have to host visitors in your home. While the vast majority of guests are respectful, living with a stranger will likely impact your comfort at home. Some people are willing to give up some of the money they could have earned in order to maintain their lifestyle.

There are a growing number of services designed to connect renters with storage space, although demand and availability still vary widely from one location to another. Look into the options in your area if you’re interested in renting out extra space for storage.

Peer-to-Peer Lending

Most loans are provided by a bank that offers money upfront, but you can now earn money as a lender by contributing to a peer-to-peer lending fund. These solutions offer lower interest rates to borrowers relative to those available with most banks and credit unions, and they give lenders the opportunity to earn more in interest than they could with a savings account or certificate of deposit.

Lending obviously comes with certain risks that aren’t involved in other methods of saving and investing, but peer-to-peer lending services mitigate risk in a number of important ways. Like conventional lenders, they perform credit and background checks to ensure each applicant is a qualified borrower.

Depending on the service you use, you may be able to make offers on individual loans or contribute to a fund that’s used to cover a wider range of loans. As with any other investment, diversifying loans helps mitigate risk and prevent a single bad borrower from ruining your investment.

Similarly, you can target higher returns by bidding on loans with a higher level of perceived risk. More risky borrowers are more likely to default, but you’ll be compensated for that risk with a better interest rate. The right balance for you depends on your risk tolerance and whether you could afford to lose the money.

Peer-to-peer lending services often work with people who couldn’t qualify for traditional loans, so this form of passive income also provides an opportunity to help people in difficult financial situations. Of course, it’s up to you to determine which applicants you can trust to pay back the loan.

Investing in Real Estate

Investing in real estate is a common financial goal for people of all ages, but retirees are in the unique position to dedicate their time and resources to this kind of passive income. Real estate can be a time-consuming field, so it isn’t always easy to manage if you’re also working a full-time job.

If you’re new to real estate, consider starting with a rental property to start earning consistent income after making your initial investment. Keep in mind that you’ll need to budget for operating costs and other expenses, especially if you’re planning to manage multiple properties.

In addition to the money you earn in rent, real estate offers the potential to increase in value over time. Of course, these changes are dependent on the housing market in your area, so it’s important to understand market trends before investing.

It will likely take years to break even on your rental, but property is a worthwhile investment that will continue to hold value throughout the rest of your life and beyond. Properties are also relatively liquid, so you should be able to find a buyer if you ever change your mind.

Flipping Properties

While most new investors focus on rental properties, you can also make money by buying old or rundown properties, fixing them up, and selling them at a higher cost. Flipping homes involves a wide range of skills and knowledge, so it’s not right for everyone. That said, you could potentially earn a substantial amount of money if you’re able to identify good values.

If you’re new to flipping properties, consider working with someone who has firsthand experience on similar projects. They’ll probably be willing to work with you if you offer funding along with a cut of the profits, and their expertise will help you manage renovations while minimizing unnecessary costs.

People of all ages can pursue lucrative passive income projects, but retirees often have even more time to invest in a new source of income. These are just a few of the most effective ways to generate a reliable income without going returning to your career or taking a part-time job.

This informative post was contributed to Leisure Freak by Logan Allec at Money Done Right.

Logan is a CPA, personal finance expert, and founder of the finance blog Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money.