ARTICLE

How to make money from your property

How to make money from your property

From someone who's done it...

  • "My partner and I rent out our home as a location space. Your home will be packed with people and messy equipment. It's not always easy, but it's a great way to make extra money".

    Fiona Montgomery-Smith, jewellery designer

1. Extending your home
The most common way of making money on your home is to convert existing space or build an extension before you put it on the market. In the current financial climate, you should speak to an estate agent before you embark on any building work to find out whether you can still profit in the long run. A local estate agent will have a good idea of the market in your area and what buyers are looking for.

2. Taking in lodgers
If you have a bedroom you don't use, or if your children have moved out and the house feels a little empty, renting out a room can be an easy way to make money. You must first assess whether there is demand for lodgings in your area. Is there a college or university nearby? Contact your mortgage lender and insurer to see if your terms permit a lodger. If so, place an advert in a supermarket or local newspaper, or register with a rental website. You can take advantage of the government's Rent a Room scheme, which allows you to receive up to £4,250 a year from lodgers in rent, tax-free. Make sure you get at least two references from your lodger – a work and a personal reference – which you should check. Ask for a deposit, refundable on their departure if everything is in order.

3. Renting your garage or parking space
If you live in an area where parking spaces are at a premium, renting out a parking space or garage can offer instant returns for little effort. Advertise in a local newspaper or supermarket, or online via a parking website such as Your Parking Space. Your Parking Space lists more than 3,000 spaces across the UK and membership is free. Expect to earn up to £100 a month in smaller towns to up to £100 a week in cities such as London or Manchester

4. Starting a B&B
If you live in a large house and you are looking for a career change, you could set up a B&B. Ideally, your home should be near an area of interest and you should have at least two spare rooms – preferably en suite. You can expect to charge around £70 to £100 for a double room per night. Make sure you get a clear idea of the costs and work involved. You will need:

  • Planning permission for use of your home as a B&B
  • A health and safety assessment
  • Adjustments to your insurance policy
    For a thorough idea of what is involved in setting up and running your own B&B, Bed and Breakfast Academy is an email course run by B&B owner Karen Thorne. The course, which costs £20, covers the basic setup details, marketing your business and the day-to-day running. You'll get a clear idea of how much you'll make and the level of work necessary on your part. Call 01547 530885 or visit the Bed and Breakfast Academy website.

    5. Renting you home as a location space
    Ideally suited to larger homes with space to accommodate film crews or photographers and stylists, renting your home as a location for photography or filming can be quite profitable. Contact a location agency with details of your property to see if they will add your home to their books. Include as much detail as possible, such as parking facilities, room dimensions and photos. Most agencies will charge 20% commission and you can expect to make from £300 to £3,000 a day.

    6. Hosting foreign students
    Playing host to visiting students from around the world while they are in the country to learn English can be both financially and culturally rewarding. It is essential that you live near or within an easily commutable distance to a foreign-language school as the student will have to travel for classes. You will have to provide a bedroom, preferably with a desk at which they can study, and usually supply meals every day. In return, you can earn up to £130 per week. As with lodgers, you can take advantage of the Rent a Room scheme and earn up to £4,250 tax-free. To find out more about hosting foreign students in your area look up language schools in the Yellow Pages.

    • Related sections: Cash In The Attic , Flog It , Put Your Money Where Your House Is

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