With the cost of living increasing and inflation predicted to hit 10% later this year, we could almost all do with a little extra cash right now. Changing jobs and cutting expenses are two of the most obvious ways to improve your situation, but if you’re a homeowner, it could make sense to generate extra income through your property.
There are lots of ways to do it too, and none of them involve selling up or waiting for years. Plus, given our homes cost us so much money through mortgage payments, bills and upgrades, it’s only right that you make yours work harder for you.
Read up on five potential ways to turn your home into a source of income below.
Rent it out
Let’s get the obvious one out the way! Renting out your home could allow you to charge market rate for long-term stays or higher for occasional use when you’re out and about.
If you choose the former, you’ll need to find somewhere else to live in the meantime. That could involve moving in with a family member or friend or renting somewhere cheaper.
Rent a room
If you’d prefer not to move out but still have space to spare, a good compromise could be to rent out a single room. You won’t raise as much income, of course, but you might also enjoy their company!
Ideally, the room you offer will have an en-suite bathroom. Contract workers and students are convenient tenants, as are travellers if you live somewhere with high tourist numbers.
Use equity release
If you’re 55 or over, you could use an equity release mortgage to unlock tax-free cash tied up in your home, without moving. You can use equity release funds however you wish, from paying off debts to enjoying holidays and financially supporting loved ones.
It’s not a decision you should take lightly, so make sure to get professional advice before taking the plunge.
Rent a car park space
If you’ve got spare space on your driveway or an empty garage, renting out your driveway could be the way to go. A recent study revealed homeowners pocketed £26 million in 2021 by renting out their unused driveways.
Londoners unsurprisingly benefitted most from perky parking demand, with free car spaces harder to come by in cramped, built-up cities.
Depending on the location and characteristics of your home, you could be able to earn extra cash by renting it out for events. A big outdoor space could appeal to festival goers, wedding planners and local tourists, for example.
For the latter group, ideas like mazes and labyrinths might appeal in spring and summer.
Could any of these ideas suit your property and lifestyle? While all of them have their pros and cons, they all create income opportunities with relatively low effort or skill required.