We know the feeling: everyday costs are rising and money is tight, there’s only so much we can squeeze out of our pensions, so we have to turn to more innovative ways of making a bit of extra cash. One such way is to use your home to your financial advantage. Here are our top tips on how you can squeeze some extra cash from your home.
Take in a lodger
If you have a spare bedroom, take advantage of the government’s ‘Rent a Room’ scheme which allows you to earn £4,250 a year tax-free. A lodger can be a tax efficient way to raise some extra cash and give yourself a bit of company. But do create a lodger agreement to record the rent, deposit and responsibilities on each side, which also ensures you can easily get the room back or have a lodger leave when you need to.
Rent out your car parking space
Depending on the location of your home, renting out your car parking space can be a lucrative way of raising some extra cash. It’s best to put things in writing from the start by creating a car parking licence so that everyone is clear on where they stand. The licence will help to formalise the arrangement and ensure you get the space back when you want to, and it covers everything from the fee to your and the licensee’s responsibilities and indemnity for all claims arising from the use of the space.
Rent your property as a holiday home
If you’re going to be away from home for a while, why not rent out your home for the duration you’ll be away? You can make a bit of extra money and it also means your house won’t be sitting empty. Make sure you have a holiday letting agreement in place to protect yourself as well as your tenant.