Using your home to generate funds is a growing trend. Known as ‘passive income’, it means you can raise cash without having to do very much. But what most people don’t realise is that their home is possibly the most lucrative money-making asset they own.
Here’s a few ideas...
1. SPARE BEDROOM
Renting out a room means that lodgers benefit from an affordable place to stay, often on a Monday to Friday basis, and householders can earn up £7,500 a year tax-free. It’s open to both homeowners and tenants. The tax exemption is automatic if you earn under the £7,500 threshold, although you’ll have to complete a tax return if your rental income is over that amount. For more information, visit gov.co.uk/rent-room-in-your-home.
If you don’t fancy a full-time lodger, you may want to try short-term letting websites such as AirBnb or HomeAway. You can let out a room – or even your entire property – to holidaymakers for potentially hundreds of pounds a night. If you go down this road, speak to a tax adviser, as often the tax situation isn’t as clear-cut as letting out your property long-term.
Airbnb Plus home
3. STORAGE SPACE
Your cellar, loft or garage space could be used by people looking for storage. According to stashbee.com, a ‘storage host’ with room for 20 average-sized boxes could potentially make £960 a year. ‘Storage guests’ are subject to ID checks, and belongings are insured.
4. WORKSPACE AND EQUIPMENT
Consider allowing workers or students to rent space at your home to work, study or hold meetings. This could be your home office, garden room or dining table. Rates range from £50 to £250 a day. Check out day rental specialists spacehop.com, vrumi.com and officeriders.com for details. If your home has a piano or recording equipment, you could also offer that for hire through rentnotbuy.co.uk.
If your kitchen is quiet during the day, take advantage of the explosion in food start-ups and private catering in recent years. Kitchen2rent.co.uk matches available domestic kitchens with those who need a place to create.
Nigel Rigden/ArcaidImages / Getty Images
6. GARDEN AREA
Guests might pay to camp in your garden! Campspace administers more than 1,000 micro-campsites across the globe. Typical rates range from around £5 to £10 a person for a night. Alternatively, if your garden has space for a vegetable plot, you could advertise it as a private allotment.
Don’t forget your driveway – if you live near a station or sporting venue, you can advertise parking for rent on a website such as justpark.com or yourparkingspace.co.uk. "If you’re a car owner and a commuter, you’ll know how much of a pain trying to find a space in the morning near the train station can be. However, if you have space on your driveway, why not put it to good use by letting it out? How much you get depends on where you live, but according to website Parklet.co.uk, you can earn anything up to £200 a month by hiring out your driveway," explains Jessica Boyle from Nutmeg.
8. RENT YOUR HOME TO FILM & TV COMPANIES
Is the décor of your home truly spectacular, or even a little unusual? If you think your home has character and the potential to be on the big screen, then consider signing up with a film locations agency. You could earn thousands of pounds by allowing a film crew into your home – see how homeowner Sommer Pyne fared when her house became the set of BBC's crime drama McMafia.
9. YOUR CAR
If your car sits on your driveway all day, consider peer-to-peer car sharing – letting other people pay to use it. Companies such as easycarclub.com subject all borrowers and lenders to rigorous checks, as well as also providing insurance and breakdown cover.
THE LEGAL SIDE
Many of these moneymaking ventures are very new, so tax rules have not necessarily caught up with them. However, if you use your home to generate a substantial amount of income, you’ll need to inform Her Majesty’s Revenue & Customs (HMRC) as well as your mortgage company, landlord and insurance provider. For more information, go to gov.uk and search ‘tax’.