Rising unemployment rates, crippling inflation levels, falling returns on investments and savings, and stagnant wages have placed more and more financial pressures on the middle class, forcing many to look into alternative ways of making ends meet. An alternative income-producing strategy that is quickly gaining steam across the UK is the use of property as an income generation tool, but not in the typical sense.
More and more individuals are making money from their homes without putting them up for sale. Best of all, some of this bricks and mortar income can be made tax-free.
Rent a Room to a Lodger
Thanks to the rent a room scheme, anyone who opts to share their home with a lodger can receive nearly £4,500 a year or £90.00 per week without paying taxes on the added income. However, only single family residences that have not been converted into separate flats are eligible for tax deferment. If you do have income property that is separated into different units, the rental income must be declared to HM Revenue and Customs, and taxes must be paid.
The rent a room scheme also does not apply to unfurnished accommodations.
When entering into an agreement with a lodger, it is strongly advised that you create a written landlord/lodger agreement this is signed by both parties before the lodger takes up residence in your home. You should also check with your landlord, mortgage lender, or your local authority to ensure that taking in a lodger is allowable.
Register Your Home with a Location Agency
If you would like to make a nice income from your home without experiencing a complete loss of privacy, you may want to consider registering your property with a location agency. If your home appeals to a photographer or TV producer, you can fetch up to £2,000 a day or more. Of course, opulent and over-the-top properties are more likely to be desirable and can generate the most revenue, but numerous photo shoots, pop videos, and soap operas are shot in rather ordinary locations. So, you may receive good money by making your home available for such shoots.
To do this, you must take and organize a comprehensive set of professional-looking photographs that showcase the desirable qualities of your home. The better your photos, the more likely it is that your home will stand out from others vying for the same clientele. A magazine shoot can earn you up to £500 a day, and a feature film producer may pay £5,000 for a single day of shooting. With the latter, there will likely be a large crew trouncing around your home, but the inflated fees reflect this added inconvenience.
Rent Out Your Property While on Holiday
Homeowners with nice properties in desirable locations can rent their properties out to businessmen or individuals on holiday for short periods of time while they are holiday themselves. Rather than letting your home sit empty for a week or two, why not rent it out and let the proceeds cover your own holiday expenses? In addition to earning upwards of £800 for renting out your home for a week, you can also benefit from the added security of it being occupied.
Rent Your Garage or Car Park
Even the outside spaces around your home can become instant income producers. As parking becomes more and more of an issue, renting out car parks is becoming a viable and lucrative form of income generation. A garage or secured parking space can easily be rented out for a fair price. In fact, some London car parks near airports, railway stations, sports stadiums, and large employers are fetching more than £3,500 per year.
If you are like many of today’s middle-class UK residents whose finances are getting squeezed more and more each day, you can easily turn your home into an income-producing property. By renting out a room to a lodger or utilising the services of a professional location company, you can live in your home while enjoying a nice extra income at the same time. Instead of a second job, let your home work for you.
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License: Image author owned
License: Image author owned
License: Image author owned
Jonathan King spends hundreds of hours a year finding the perfect location for clients, when not hunting for shoot locations I spend time trying to pass on knowledge about the industry in articles.
