Looking to generate some additional income in 2021? In this article, Peter Watton from OddsMonkey shares his tips for making money at home.
It’s always nice to have some extra money coming in. But, with Money reporting that 78% of people in the UK are starting off 2021 with personal debt, more and more of us are looking for new ways to generate additional income.
If you have credit cards, personal or payday loans, car loans, or overdrafts to pay off, or if you’d just like to have a little extra disposable income, you might be interested to know that the house you live in could be the key to doing just that.
Below, I’ll take you through just some of the ways you can make money off your home.
Rent out your driveway or parking space
Renting out parking space is a great option if you live in the city centre, next to a notable transport link such as a train station, or even a hospital or football stadium. You could stand to make between £50 and £200 per month on average, with even more profit to be made in London boroughs where parking space is at a premium.
Rules vary by council, but It’s important to note that you can only sell or rent out space on property you own, and not lease out your resident’s permit for on-street parking. You’ll also have to pay income tax, check your insurance and mortgage policies to see if they allow it, and — depending on where you live — acquire planning permission.
Alternatively, you could consider renting out your car through a third party, especially if yours isn’t getting a lot of use at the moment. If the worst should happen, you’re usually covered by the company’s insurance and not your own, so it’s very easy to set up and do. However, you still have to let your insurance company know what’s going on and the additional mileage may affect your premium.
Rent out a spare room
If you have the space then renting out a furnished spare room, loft, or annexe can be a great way to accrue additional income, either short or long term. Do your research so you know exactly what’s involved in being a landlord, and make sure you interview tenants first and ask them to sign a contract to avoid any complications.
Thanks to the government’s Rent a Room Scheme, you can rent out as much of your home as you like and earn up to £7,500 per year tax-free. You’ll have to let your mortgage and insurance lenders know that’s what you intend to do, but in most cases it won’t affect your policies much. If you currently live alone, taking in a lodger will affect the single person discount on your council tax so you’ll have to factor in the loss of this 25% reduction. But you can rent out long term and even run a bed and breakfast under this scheme.
Run a shop
Take advantage of unused space in your home by running an online shop. This can be as simple as searching in the sales to find discounted products, then selling them on through a digital marketplace. Alternatively, if you’re good with your hands, you could use the extra room to set up a craft area in your home and sell what you make. As an online seller you can make up to £1000 tax-free on sites like eBay, Etsy, and Depop, but anything over that and you’ll need to register as self-employed with HRMC and pay the appropriate sales tax.
There are so many ways to make money online aside from selling, too. From blogging and influencing to matched betting, our free guides to online side hustles can help you find the right option for you.
The tips in this guide can help you find ways to make money off your home. Give them a try and you’re sure to generate some extra income.