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Using your home to make money

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It provides essential shelter and the base from which you and your family live your lives, but did you appreciate quite what a money-spinner your home might be?

Some of the ways of making extra cash from unused space in your home may be quite obvious, but one or two novel methods might also be worth pursuing if you own a suitable property in the right location. 

Let’s take a look at some of the possibilities:

Rent a Room

  • it has been running for a number of years now and is an incentive introduced by the government to encourage homeowners to rent out any spare rooms they may have in their home; 
  • through the Rent a Room scheme, you are automatically entitled to earn up to £7,500 a year tax-free;

Airbnb

  • its widespread appeal and popularity has made it practically impossible to overlook the potential offered by the website Airbnb for letting out a spare room – or even your whole house – on an occasional basis to visiting tourists and holidaymakers; 
  • the website is designed with the simple objective of matching those with short-term rental accommodation to offer with those looking for somewhere affordable to stay;

Your home as a film set

  • one of the opportunities you might not have imagined is the possibility of renting out your home for use as a film set;
  • filmmakers are constantly on the look out for suitable locations and – depending on your particular home, its location, its character or even its ordinariness – your home may fit the bill for any number of reasons;
  • the amount you earn depends on a whole host of factors, of course, likely to be determined by the length of time any film crew needs to occupy the premises, and the budget the production company has at its disposal;
  • for help in finding filmmakers who might be interested in using your property as a film set and for negotiating the potentially complicated contracts likely to be involved, you might need to draw on the services of a location agency;

Rent a driveway 

  • far more mundane but no less profitable is the option of simply renting out your driveway whenever its not in use – or space on if there is sufficiently room for several cars at a time;
  • if your home is along an established commuter route, for example, parking spaces are likely to be at a premium – and same goes, of course, for any property situated near a train station or office development where a lot of people work; 
  • a story in the Express newspaper on the 3rd of June listed 50 UK towns and cities where homeowners are already earning an income from renting out their driveways – many of them making more than £1,000 a year from the practice.

Your home insurance

Before pursuing any of these opportunities, remember that it is your own home that is being used and, therefore, put at additional risk of loss, damage, theft or liability claims.

Speak to your insurer about the relevant insurance needed in each of these situations, as, typically, your home insurance as it is will not suffice.

Further reading: Are you looking to Airbnb your home?, Lodger insurance.