This Startup Will Build an Apartment in Your Backyard—and Split the Rental Profits with You

These days, you can rent just about anything. Whether it’s furniture or your neighbor’s pool, startups are finding clever ways to benefit both landlords and renters. The latest idea is Rent the Backyard, a new company in the Bay Area that wants to do exactly what its name says: help you rent part of your backyard to make money.

Here’s how it works: Rent the Backyard builds a studio apartment in your backyard (at no cost to you), rents it out, and splits the rental profits with you. You won’t have to worry about construction, paperwork, permits, finding tenants, or even playing landlord. You’ll earn equity in the apartment over time and own it completely after 30 years.

The beauty of the startup, founded by Spencer Burleigh and Brian Bakerman, is that it benefits both homeowners and renters. Homeowners can expect to make around $10,000 per year by renting out their backyard. That could potentially give Airbnb and other home rental sites a run for their money, as the homeowners would earn that cash without performing any of the hosting responsibilities. And renters can have access to quality, more affordable housing in the Bay Area that doesn’t break the bank.

“We’re backed by really great investors who are willing to put the money in now and wait for it to pay back in the future,” Burleigh told NBC News. “The idea being that the rent is really high in the Bay Area so even with only 50% of the rental value we’ll be able to make back our money pretty quickly.”

There are three conditions to renting your backyard: You must own a home in the Bay Area, have a backyard that’s at least 30 feet by 30 feet, and live in your home for most of the year.

The startup launched in July and interest is already high. Burleigh and Bakerman are in the process of surveying backyards, so the first units could go up within a matter of weeks. If you own a home in the Bay Area and are looking to make some extra cash, it could be an easy way to bring in more money.