3 ways to earn money with extra space(rooms) in your house!

If you have spare space in the home you live in, you can earn money from it. That could mean letting a whole bedroom or just a bit of storage. If you don’t like the idea of sharing your home with a stranger, you could also downsize and rent out your current property.

Here are three ways to earn from the space you already have.

1. Rent out a room to a lodger

This is the traditional way and the most popular. If you have a spare bedroom, you can let it to a lodger who pays you every month.

The big advantage is tax. Under the Rent a Room scheme, you can earn up to £7,500 a year tax-free from letting furnished accommodation in your home. The limit halves to £3,750 if you share the income with someone else, such as a partner. If you earn less than that, you don’t need to do anything. If you earn more, you must file a tax return.

Here’s what that’s worth. A room let at £600 a month brings in £7,200 a year. A basic-rate taxpayer would normally pay £1,440 in tax on that. Under the scheme, you pay nothing.

SpareRoom is one of the best-known sites both for advertising a room and for finding one.

Before you take in a lodger, check with your mortgage lender and home insurer. If you rent your home, ask your landlord first, because taking in a lodger may break your tenancy agreement.

2. Rent a room as a short let

If you don’t want a full-time housemate, or you’re often away at weekends, short lets might suit you better. Sites like Airbnb let you rent out a room by the night. Many hosts only let at weekends, when demand is highest.

With a good flat in a city centre, you can earn more this way than from a lodger, sometimes double. You’ll also do more work: cleaning, changing beds and answering guests.

Points to watch:

• Tax: the Rent a Room scheme can also cover short lets of a room in your own home while you live there.
• London’s 90-night rule: if you let out your whole home in Greater London, you can only do so for 90 nights a year without planning permission. Letting a room while you’re living there isn’t caught by this limit.
• Permissions: check your mortgage, lease, insurance and local council rules before you start.

Airbnb works the other way too. If you’re travelling as a group, booking a whole flat and splitting the cost is often cheaper than hotel rooms.

3. Rent out space for storage

No spare bedroom? You can still earn by renting out storage. Stashbee, which took over the Store Mates platform, lets you list spare rooms, lofts, basements, sheds, garages and parking spaces.

Listing is free. Stashbee takes a 5% fee from your earnings on each booking and pays you monthly. Renters’ identities are checked, contracts are signed automatically and the renter’s items are covered by booking protection.

Storage income counts as property income for tax, not Rent a Room income. The first £1,000 a year is tax-free under the property allowance.

Renting out storage is also an option if you rent your home, but speak to your landlord first. Subletting any part of a property can break your tenancy agreement. For more ideas, see our earn money section.