The short answer is yes you do, it’s a change of circumstances and you’re earning money from it. There’s lots of upsides to making extra cash from renting driveways for parking, or a spare room or outbuilding/garage for storage. But it’s important to think about the insurance angle too. Here’s some useful tips from Quotezone.
The experts at Quotezone.co.uk have found six ways homeowners could make money from their homes to tackle soaring mortgage rates and general living costs. So let’s get into it.
TAXABLE INCOME?
Those considering making passive income from their home and outdoor space can earn up to £1,000 each tax year from a hobby or start-up business without paying income tax. Similarly, the property allowance means money-makers can earn up to £1,000 tax-free each tax year on income from land or property.
People who rent a room in their home have the potential to earn £7,500 per year completely tax-free under the government Rent a Room Scheme, so it is well worth researching options. It depends on your tax and benefits status as well so get some advice before you start accepting money.
Greg Wilson, CEO and Founder, said: “Making money off your home is ideal for people that don’t have much time and want to generate cash to help with their bills. There are so many innovative ideas to try, like renting out the garage for people in need of storage space or the garden to city-dwellers desperate for green space to grow their favourite produce and plants. Also, let insurance providers know about any changes in your circumstances to ensure you’re protected, for example, if you are taking in a lodger or allowing someone to park on your driveway. Inaccurate policy details can invalidate your cover and leave you vulnerable should you need to make a claim.”
Here are Quotezone.co.uk’s top ways people can earn extra cash from their homes:
- Rent out a room
Under the government’s Rent a Room Scheme, renting out a room can allow homeowners to pocket an extra £625 a month tax-free, and finding a lodger won’t be challenging with the demand for rooms high nationwide. There is a potential to earn more from lodgers depending on the location, room size and facilities available. Homeowners can also charge lodgers for council tax, utility bills, and even cleaning and food if provided by them.
- Rent out space for storage
If the loft, shed, garage or basement is empty and unused, why not rent it out to people looking for storage space? These spaces can potentially make thousands in passive income, especially in areas with a high demand, like London. Many people are looking to store their belongings in homes as it works out cheaper than commercial self-storage units.
- Rent the garden as an allotment
People with a larger garden could consider renting out space as an allotment, allowing the unused space to generate money. Ensure there is easy access to the garden so allotment owners can safely, but securely, get in and out when needed. You don’t want anyone to have a fall on your property, or any strangers to simply wander into the back garden.
- Rent out the driveway
People are desperate for parking near stations, airports and sporting venues and are prepared to pay out for a golden spot. Anyone in a high demand area should research if their car parking space is eligible for renting. There are plenty of websites where homeowners can advertise their sites, claiming their top spaces make upwards of £4000 a year.
- Hire out rooms to businesses
Make the most of unused rooms by renting them as an office workspace. Sitting rooms, or other rooms which would be appropriate, can be hired out by businesses for meetings or used by start-ups looking for an unconventional workspace. With the rise of remote working, more and more people are looking for affordable workspaces away from home, and plenty of online platforms can help facilitate this renting.
- Rent to film and TV companies
Agencies are always on the lookout for stunning homes with character to feature on the big screen. Letting a film crew into a home has the potential to earn people thousands.. To be in the running, sign up with a film location agency to see if it would make a suitable contender. Spacious country homes and modern city centre apartments seem popular, although directors need all sorts of houses across the UK to shoot various scenes.
Remember, do your research before offering a service and always tell your home insurer. For more price comparison info, Quotezone.co.uk can help.
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