Retiree Doubles Social Security with Room Rentals

Eldonna Edwards, a retired massage therapist and author in California, shares her tips for supplementing Social Security income in retirement.

Why it matters: Social Security alone is often not enough to cover living expenses, forcing retirees to find creative ways to make ends meet.

The details:

• Edwards receives about $1,450 per month in Social Security benefits after Medicare deduction.
• She rents out two bedrooms to students for $1,300 each per month, netting around $1,175 per room after utilities.
• Without renting rooms, Edwards says it would be “impossible” to live on Social Security alone due to her $1,300 monthly mortgage and $8,000 annual property taxes.

Edwards recommends that other retirees consider opening their homes to generate income, whether through Airbnb, renting to traveling nurses, or hosting students.

Frugal living tips:

• Recognize that you may not need as much as you think, such as multiple streaming services, the latest phone, or designer clothes.
• Cut your own hair, do your own nails, and shop at thrift stores to save money.

“I’ve learned that it’s easy to get sucked into thinking we need a lot more than we actually do,” Edwards says.

Focus on quality of life: Despite the financial constraints, Edwards appreciates the freedom retirement offers and the ability to live in a location she loves.

Other ways to supplement Social Security:

• Transform talents into side hustles, such as former government employees working at polling places or retired music teachers repairing instruments.
• Veterans can take advantage of the VA Aid and Attendance benefit, which provides up to $23,000 per year for care and living expenses.

By creatively leveraging skills and available benefits, retirees can find additional sources of income to maintain a comfortable lifestyle in retirement.

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Eldonna Edwards, a retired former certified massage therapist and author based in California, retired at age 62 and started living primarily on Social Security benefits. Though she has had to be creative in supplementing her income, she doesn’t regret it. When Edwards first retired, she was expecting a mere $750 per month, but because her ex-husband had recently passed, she receives widow’s benefits based on his earnings, which doubled her monthly benefit.

Now, after her Medicare is deducted, she takes home about $1,450 per month. While that is more than she expected, it is still not nearly enough for her to actually live on by itself. Aside from receiving around $1,500 per year from book royalties, the only way for her to afford to live in her own home is to rent out rooms.

“I currently rent out two bedrooms to students for $1,300 each per month; however, I pay for all utilities, which brings the net rent down to about $1,175 per room,” Edwards explained. With a $1,300 a month mortgage payment and $8,000 annual property taxes, Edwards described it as “impossible” to live on Social Security alone. She recommended that other retirees consider opening their homes as a way to bring in income.

“I know other retirees who Airbnb their homes or rent to traveling nurses. I happen to live near a university so I rely on students but there are other options out there. Just be sure to properly vet potential housemates before allowing someone into your home.”

Frugal living is nothing new to Edwards.

Supplementing income with room rentals

As a single parent for many years, she said she always lived frugally by choice and necessity. Ultimately, she’s found that living on less is not so bad.

“I’ve learned that it’s easy to get sucked into thinking we need a lot more than we actually do. I don’t need three to four streaming services, the latest phone, monthly pedicures, and designer clothes. I cut my own hair, paint my own toes, and shop at thrift stores.”

Loss of income is a worthy trade for her because retirement has given her the “precious gift” of freedom to spend each day without a work schedule.

Nonetheless, she feels the constraints of retirement life. “I have very little savings; most of my assets are tied up in my equity. At one point I put my home on the market before quickly realizing that I could not afford to buy another home without moving out of state.”

Edwards moved to San Luis Obispo, California, from Michigan 27 years ago, escaping the long cold winters and short but mosquito-ridden humid summers.

“I love the central coast of California and I’m more than willing to make small sacrifices to enjoy living here in paradise. As I sit here writing these words, in the shadow of Cerro San Luis Mountain just outside my window, I’m filled with gratitude for the life I’ve created here.”

Joseph Eck, CFP and owner of family wealth management services, said that it is common for retirees to supplement their Social Security or pension income by creating side hustles in retirement. “In almost every case, the client is taking something they previously did during their working years and turning it into extra retirement income.

Some great examples include former government employees working seasonally for their county board of elections office during voting season to run the voting polls, or former music teachers who retired and now supplement their retirement income by repairing instruments for students in the community and purchasing damaged instruments that they can repair and resell at a great price.”

Marty Burbank, an elder law attorney and owner of a legal practice, has helped numerous clients supplement their Social Security incomes through various strategies involving benefits such as the VA Aid and Attendance benefit, which provides up to $23,000 per year for veterans and their spouses. By creatively leveraging their skills and available benefits, retirees can find additional sources of income that allow them to maintain a comfortable and fulfilling lifestyle.