Harnessing the earning power of your home
Your home is most likely the single most expensive purchase that you will ever make. Depending on your mortgage, your income and any other financial obligations you may have, you may start to feel the pinch, especially in the volatile financial environment we are currently experiencing.
However, what if you were able to boost your income using your home without having to sell or re-mortgage? Here are just some ways in which you can make your home work in your favour financially.
Rent Out Your Spare Room
If your home has one or two rooms that hardly get used, why not turn them into a source of income? In fact, the Government actually encourage people to rent out their spare rooms as part of their Rent a Room Scheme.
This scheme allows you to earn up to a £7,500 threshold per year, which has the added benefit of being tax-free. The room that you let out should be furnished, and the £7,500 figure will be halved if you share income with a partner.
There are plenty of people out there simply looking for a room to rent rather than a whole property. From people looking for cheaper accommodation, service personnel such as nurses or locum doctors to students who are studying abroad and don’t need a whole house or full tenancy, there are people out there who are looking for a room.
The beauty of short-term lodgers is that there’s no pressure on either side to fulfil a long-term tenancy agreement. You can work with your lodger to create an agreement that suits both your needs.
Rent Out Your Whole House as a Holiday Home
Airbnb has rocketed in popularity over the past couple of years, and provide a more homely feel than a hotel for those who require accommodation.
If you and your family often go away on holiday, you could put your house up for rent over period that you are away. Not only will this help you earn money, but it means you aren’t leaving behind an empty house! Obviously this would need to be organised through a service like Airbnb to find out how to ensure the safety of your property
If you live in an area which often hosts large, popular events, it could be the perfect way to earn some quick money – especially if the events are festivals; there are some people who prefer not to stay in a muddy field!
Rent Out Your Driveway
Are you a homeowner who doesn’t own a car but has a drive space which is unused? You could rent out your drive space to workers, especially if you live close to a city centre where parking costs quite a lot per day.
This is perfect for those who don’t want to allow people into their home – which is completely understandable – but still make money from some extra, unused space on their property. Weekdays should ideally be marketed to the 9-5 workers who will want to park as close to their work or the town centre as possible for the cheapest that they can.
Written by: Jessica@whichequityrelease.co.uk
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