How to make extra income from your home

Shoestring Jane explains how you can make extra income from your home

Our homes are usually our biggest expense, with many struggling to pay eye-watering mortgages or rental costs. Why not mitigate those bills by looking at ways to make extra income from your home?

Before you proceed with any of these ideas, check your tenancy agreement or your mortgage terms and conditions to ensure you aren’t breaking any rules. You may need permission from your landlord or mortgage lender.

Here are some ideas to help you make extra income from your home and boost your bank balance.

Take in a lodger

If you have a spare room that sits empty much of the time, taking in a lodger can be a big boost to your finances.

In the UK, the Government’s Rent a Room Scheme allows you to earn up to £7,500 tax-free by renting out a furnished room.

If having someone else in your space makes you feel awkward, you can set boundaries that make you feel comfortable. For example, as a single female living with my teenage daughter, when I rented my spare room I always chose female lodgers.  I also specified that I didn’t allow overnight guests without prior permission. 

We did have a young woman who was keen to rent our single room but wanted to put a double bed in there so that her boyfriend could stay every weekend (we said no).

My point is that you make your own rules (within the law), but make sure they are very clear to prospective tenants.

By the way, I did get reported to Spare Room for expressing that I preferred a female, but they upheld my right to do that as long as I explained that we preferred a woman because it was a female-only house.

When you are renting a room in your own home you can say in your advertisement ‘Female preferred’ or ‘Male preferred’, but you cannot say ‘No men’ or ‘No women’. Live-out landlords are not allowed to do this as it would be discriminatory. You can find full guidance here.

Host language students

An interesting way to make extra income from your home is to host a language student. This can be useful if your room is not always available, for example, if you have family members away at university.

There are numerous organisations and language schools looking for host families. We hosted for a college locally and had students aged between 16 and 28, most staying a week or two. However, one young woman from Africa was with us for six months.

You are usually expected to provide a private room and all meals, including a packed lunch. Your guests will expect to eat dinner with you so that they can chat and improve their English. 

It is a fun way to earn some extra money. I wrote an in-depth article on hosting language students here.

Rent your parking spot

Another good way to make extra income from your home is to rent out a space on your driveway or in your garage. This will often be a Monday-to-Friday arrangement for commuters.

In fact, an ex-colleague of mine let her town centre driveway out between 8.30 and 6 whilst she was at work and said she felt it made her house look occupied and therefore more secure.

If you live near a town or city centre, hospital, industrial area or station your parking space will be easy to rent out. A quick internet search will show several organisations who will coordinate the arrangement on your behalf.

Get your home on TV

TV and film production companies are always on the lookout for suitable filming locations, including family homes. If your property is a bit unusual, lavish or quirky, it is more likely to be selected. However, ordinary family homes are also used in TV dramas.

Start by registering with an agency such as Locations Direct, which will assess your property for suitability and advertise it to potential clients.

Airbnb

If you live in a tourist area or city, then Air BNB is a good way to make use of your spare space. 

If you want repeat business you will need to keep high standards of decor, cleanliness and attentiveness. However, you don’t have to offer a cooked breakfast if that doesn’t suit your lifestyle. You should have access to tea and coffee-making facilities, however.

Tax and insurance

Whichever way you choose to make extra income from your home, remember you will have tax obligations and will need to keep records and submit a tax return. You will also need to have suitable home insurance, as most home policies won’t cover business use.

Thoroughly research the pros and cons of each option to make sure you are comfortable. Ultimately, you need to feel the extra money you earn is worth the time and effort you put in.

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