Property is the asset that most of us in the UK aspire to. In fact, it might even be fair to say that it’s something of a national obsession. However, once you’ve managed to get a foot on the property ladder it can feel like something of an anticlimax – yes, you have the bricks and mortar, and in this market their value is increasing by the day, but you’ll only benefit from that when you sell it, correct? While the biggest gains to be made from property do happen when you find a buyer, that’s not the only way to use your home to create income. Here are a few other ideas as to how you might be able to make the roof over your head pay.
Take in a lodger
If you have a spare room sitting empty then why not offer it to someone looking to pay to have a roof over their heads? According to spareroom.co.uk you can make around £90 a week from having a lodger and with very little overheads other than the mortgage you already have.
What are the benefits?The Government’s Rent a Room scheme allows you to make up to £4,250 a year that is tax free if you take in a lodger. The extra money is the main reason people choose this option but having another person around the house can also be a motivation.
Are there any disadvantages? Choose your lodger carefully as it’s a fairly cosy arrangement to have someone living under your roof, especially if the property is small. Lodgers have fewer rights than tenants do so if you’re a lodger landlord remember that you can ask your lodger to leave at any time as long as you give some notice.
Become a short term B&B
If you don’t want to take on a permanent lodger and you have the kind of property that might be convenient for those looking for a short term stay, either for business or a holiday, then there are plenty of websites where you can find paying customers on a B&B basis. You can make upwards of £35 a night, depending on where you’re located and what your property is like.
What are the benefits? If you choose to be a casual B&B, as opposed to setting yourself up as an official guesthouse then you can avoid the need for considering building regulations or providing the full B&B experience, including breakfast.
Are there any disadvantages? A bad guest can do damage so it’s worth making sure you have some sort of vetting process or use a site like Air BnB where visitors are rated.
Hire your home out as a location
If you have stunning interiors, a quirky home, or you’re living in the kind of location that might be interesting to a movie director or someone setting up a fashion shoot then you could make some money by allowing it to be used as a set or backdrop.
What are the benefits? You can earn anywhere upwards of £500 a day – into the thousands – and you could well have a house full of celebrities if your home appears in a big budget movie.
Are there any disadvantages? This isn’t a regular source of income that you could rely on and if your home is average or difficult to get to there may be less demand.
Rent out your garage or driveway
With parking at a premium in most areas in the UK, if you have a parking spot that’s going unused outside your house then you might be missing an opportunity to make some cash, especially if you live close to a railway station or airport.
What are the benefits? There’s very little effort involved in allowing someone to park in your space and you could earn upwards of £200 a month, depending on where you live – much more if you’re close to sports venues, popular shopping centres and office hubs.
Are there any disadvantages? You can’t rent out a resident permit holder space so you’ll need to draw up a contract for the parking and the payment. Make sure you tell your insurer what’s happening in case any damage is caused that you need to claim for.
Become a landlord
Rents in the UK continue to rise, which makes being a landlord an incredibly easy way to make money from property you own.
What are the benefits? Average rents in the UK are £740pcm outside of London and £1,560 in London so there is plenty of money to be made. If you’re planning on a long trip or going to live abroad you’ll also know there’s someone in the property, taking care of it, rather than it sitting empty.
Are there any disadvantages? You have legal obligations as a landlord, for example carrying out an annual gas safety check, protecting a deposit, ensuring the boiler works etc. If you’re not going to be nearby or contactable you may need to pay an agent to manage the property.
If you own your home and have a mortgage then don’t forget that you could use your house as a form of security to obtain a secured homeowner loan – this way you can borrow more and/or borrow at a lower rate than with a personal loan. Perhaps you want to do some home improvements or consolidate existing debts. You can find out more and decide whether it’s your right form of finance.
Oliver Jones has written for Solution Loans since 2015. His passion for personal finance comes through in the 150+ blog posts he's written since that time. His talent for explaining all things money means he's covered topics as diverse as...Read more about Oliver Jones