If you’re like most people, you might be feeling the January pinch after a flurry of Christmas shopping and too many evenings out. The good news is, there are clever ways of making money, not least via your own home.
Between July 2016 and July 2017, over £650 million was earned by private householders renting out their properties in the UK. Breaking that down, the typical British host earns £3,000 by renting their home for 36 nights per year. That’s serious money – and you can earn extra cash tax-free up to £7,500.
What’s more, the number of hosts is always growing and it isn’t hard to see why. It’s free and easy to create a listing on Airbnb. Whether you have a spare room, a granny flat or a self-contained studio in your garden, you just need to describe your space, say how many guests you can accommodate, and add photos and details. Airbnb’s pricing tool can recommend competitive local rates, but what you charge is always up to you.
If that doesn’t sound tempting enough, Airbnb’s has calculated that the monthly potential of a listing in an average home in London is £2,156 a month. In Cardiff, you could earn £1,263 a month; in Belfast you could welcome in an extra £1,260 a month; and in Edinburgh, you could be splashing the cash with an extra £1,296 in your pocket.
The flexibility Airbnb offers is why so many people find it attractive. Even if you simply rent out your home when you are on holiday, you could earn a considerable sum each year.
The FMB has looked into what ‘Airbnb-style’ landlords spend their new-found cash on. Read the blog here for some inspiration.
Rent out a parking space
If you live in, or just outside, a big city, near an airport or a train station, your driveway could be making you some serious cash. To see how much money your parking space could be making you, use an online tool for a free estimate, like Parklet’s calculator. This will apply for off-street parking only – you can’t sell on your residents’ parking permit.
If you live near Edinburgh, you may choose to rent your parking space for just two weeks for the Fringe Festival or if you live in Wimbledon, just over the Championships.
Rent your home as a set
If you’re happy with the idea of a whole film crew being in your home, you might want to consider renting out your home as a set. You may need to leave your home for the full filming period and would need to be very flexible – they might need to temporarily redecorate your house. To read about the full lists of perks and drawbacks, read the Independent’s article here.
Some high-end examples include Highclere Castle in Berkshire, the set of Downtown Abbey, which reportedly earns the owners £750,000 a season, according to the Mail Online. While you might not be earning that type of cash, homes in London regularly earn £500 a day for a fashion shoot, between £800 to £1,000 for an advertising still and movies can go up to £1,500.
Get a lodger
If you supply a furnished room, welcoming a lodger into your home offers tax-free income through the ‘Rent a Room Scheme’. The income you can expect to make will vary depending on the area you live in and the facilities you are offering. The best way to find out how much you could make is to see what other landlords are offering in the same area by using websites such as RightMove and SpareRoom.
Before getting a lodger, you ought to check with your mortgage lender or landlord to make sure you are legally allowed to take in a lodger. What’s more, you should also check with your home insurers if you will still be covered after having a lodger or not. Remember, if you’re lucky enough to earn over £7,500 per year from your lodger, you will need to fill out a tax return and make sure you include the income.
Rent out storage space
If you have some spare space in your home – perhaps your children have just moved out or you have some unused space in your attic, garage or spare room – websites such as Storemates could help make you some money. Storemates link up those who need storage space with those that have the spare space. It's free to register and list, but these websites charge 15% of the monthly rent if you find a match.
Storemates recommends charging 50% of the commercial storage price in your area. You can enter in the amount of storage you have, and your address, and it will automatically suggest a price, though again, the price you charge it completely up to you.
These are just some of the ways that your home can make you some serious money.