The rising cost of living is causing all of us to pay more attention to our finances. We are all looking for creative ways to reduce our spending and also increase our income. But have you ever thought of making money from your home?
In this article we take a quick look at three possible ways to make money from your home, and some practical advice on how to get your home in shape to do just that.
If you have room to spare in your home, why not use it to make a bit of extra money? You have various options depending on how long you want to share your home for, and what kind of facilities you could offer. Let’s take a look:
Renting out a room on a long term basis is a very popular way of making money from your home, and can be worthwhile financially. You can earn up to £7500 tax free per year by doing this.
You need to think carefully whether you would be happy to have someone else living in your home for a long period of time, as it may mean you and your family making changes to your lifestyle. On the other hand, you would be providing someone else with a roof over their head, and making some extra income in the process.
If you decide to go ahead, one option is to rent out one or more furnished rooms in your home under the government’s Rent a Room scheme. But it is worth checking with your mortgage provider or landlord first, and also your home insurance provider, just in case permission is needed or any additional terms and conditions apply.
Under the Rent a Room scheme, if you earn less than £7500 per year, you will not need to pay any tax on the rent you take. However, if you earn over £7500 you will need to complete a tax return.
You can find more information about the Rent a Room scheme in the Rent a Room helpsheet. This helpsheet will also provide guidance about other ways of renting out a room outside the Rent a Room scheme.
Another option that has worked for many people in the UK is renting out all or part of their home on AirBnB. The amount of money you can make by doing this depends on what kind of accommodation you have available and where you are located. You can get an initial idea from browsing properties already on the AirBnB website.
The beauty of using AirBnB is that you don’t have a long term commitment to people in your home. Even if you only want to rent out accommodation on an occasional basis, it could still provide some welcome additional income.
All you would need to do is to register with AirBnB as a host. After some initial identity and security checks you will be able to create a listing for your accommodation, set up a calendar for bookings, and set your prices.
Before listing on AirBnB it is advisable to contact relevant third parties to check that there is no problem in you doing so. For example:
It is also a good idea to let your neighbours know, partly out of courtesy but also to ensure that there won’t be any unexpected objections.
This is a less obvious option, but almost anyone can open a B&B in their home if they choose to do so. So if you want to offer accommodation on an occasional basis this could be another option to consider.
However, be aware of a few considerations right from the start.
So if you like the idea of offering B&B and think you would be able to do it well, make sure you check out the above areas first, to see if it is a viable option for you.
For any of the above, you need to get your home ready for guests. This can be very time-consuming, so here are three tips to help you ensure that you are as well-prepared as you can be:
Whether your guests are coming for one night or several months, they need plenty of storage space.. So you need to make sure that all unnecessary clutter is removed from the room(s) they will be using. Guests don’t want to open wardrobes or drawers to find your stuff in there.
They will also need tables and surfaces to put things on, so don’t overdo trimmings such as ornaments, flowers, magazines etc. Go by the mantra “less is more”. The less clutter is in there, the more space your guests will have, and the more comfortable their stay will be.
A fundamental principle is that your accommodation needs to be as clean as it can be. So before every guest arrives, use these four simple checks to help you get ready:
We have already referred to safety, but it is of the utmost importance if you are to accommodate paying guests. You need to do all you can to make sure that their accommodation is hazard free. In particular, guard against anything that could cause the three main safety hazards – slips, trips and falls.
If your accommodation includes appliances or gadgets, make sure you provide a home manual with instructions about how to use everything safely. Even an unfamiliar coffee machine can be totally perplexing, and you don’t want your guests to become frustrated.
For short term guest accommodation it’s also a good idea to provide a manual of useful local information about things to see and do, and local amenities. Also include details about what to do in case of an emergency, such as contact details for local doctors, pharmacies, hospitals and vets.
And if anything breaks down whilst you have guests staying, it is essential that you repair or replace it as quickly as possible. A 24 month loan from Munzee could provide the short term funds you need to do this.
We hope that the above information helps you to consider creative ways to make money from your home, and to get things moving if you want to do this.
For more lifestyle and financial tips, check back here soon with direct lender Munzee Loans.
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