How To Make £7,500 At Home



* This is a collaborative post
Do you make the most of your home?
It’s a confusing question that might leave many homeowners uncertain. But think of it this way: There is an untapped potential to make money in your home. If you find that you’ve got only costs as a homeowner, then it’s time to explore the possibility to generate regular and passive income out of your property. Whether you use it to finance your next holiday or to pay for future home improvement works, it’s your decision. But the fact is that the government gives you the chance to earn up to £7,500 tax-free per year from your property – with the potential to earn more, assuming you fill a tax return form. Here’s how it works.

Rent a room scheme
Under the rent a room scheme, you can use a spare room as a bedroom for a lodger under your roof. You need however to ensure that the accommodation is fully furnished, with the essential facilities you would expect in a bedroom: a bed, a wardrobe, potential a desk and a chair is there is sufficient room available. You can opt into the scheme even if you’re a resident who doesn’t own the home – aka a tenant – assuming your tenancy agreement allows you to take in lodgers.

Prep the room
Your main priority is to establish a comfortable bedroom for your potential lodger. If you have a spare room you can use, do make sure that you can furnish the room with decent quality equipment. You can’t expect your lodger to sleep on a mattress on the floor, for instance – don’t roll your eyes, some landlords are more than happy with this solution. Additionally, you can use the scheme to pay for your loft conversion, by using the loft as an extra bedroom until it’s been fully paid off. As a rule of the thumb, you want to set aside at least two sets of bed sheets and duvet covers, so that your lodger can change bed sheets for a wash. You should also keep the room heated and safe. Insalubrious rooms will get you out of the scheme.

Create a pleasant shared space
Your lodger will share the home with you. Unless they’ve got an en-suite bathroom, you need to create a space for them in your bathroom, such as a shelf with their name on it. Similarly, you need to remember that your lodger will be using your kitchen. Making it a comfortable and welcoming space can help to make them feel welcome in your home.

Meeting your lodger
You also need to be comfortable with the choice of your lodger. Ultimately, you need to trust the stranger in your home, so it’s important to understand the precautions you can take to choose the right person. Screening your lodger is the first step. You can organise an interview to capture some information about your guests, from their name to their employment and the reason why their need to rent a room. This can help you to get a better feeling for the person.

In conclusion, the rent a room scheme may not be for everyone, but households who decide to go with it can enjoy a comfortable revenue. You can choose to join the scheme for a limited period only, which is a great trial and is often enough to pay some of your most significant bills!

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