With bills and the cost of living ever on the rise, people have started making their homes work for them by renting spare rooms out. But do you know how to do this to earn a little extra income? Well, you have a few options when it comes to filling up those empty rooms.
First you need to come to terms with the fact that you will have complete strangers in your home. If you don’t think you could deal with this, then renting our a spare room probably isn’t for you. However, if you can put up with the strangers, then The Rent a Room scheme could really help you to earn extra income from your home. You only have to pay income tax on rent that’s over £7,500, or £625 per month, so it’s a low-tax way of topping up your current account every month.
Alternatively, you could become a B&B where people stay at your home for one or two nights while they’re on holiday or visiting nearby friends. Airbnb, has taken the world by storm by allowing millions of homeowners to make money from their spare rooms, simply by giving someone a place to sleep at night at a lower price that your average hotel. It’s up to you whether you offer breakfast and meals, but this will be reflected in the price. Airbnb also cover insurance costs and provide reviews on guests and hosts so that you can feel reassured that guests would respect your home.
If you prefer the stability of a regular income, having someone in your house permanently then sites such as Spareroom offer you the chance to advertise your home or search for potential flatmates. Spareroom doesn’t come with the same stability as Airbnb as you will need insurance through your own provider and you’re taking a bit of a risk letting someone into your home with no reviews next to their name. However, you are completely free to meet anyone before you make any decisions and give him or her a thorough vetting prior to the signing of any contracts.
If the concept of being a landlord is still a bit foreign to you then have you considered moving in with a loved one and renting your whole property out?
You can go through a professional and leave them to do the work while still reaping the financial benefits and not having to worry about any invasion of privacy. However, whichever option you choose, it’s still best to regularly check your property is being kept in a fit state for you and your tenants.