If you are lucky enough to have a spare room in your house, you can easily turn it into a good source of income.
Lately, I’ve heard about a lot of folks who are turning their extra space into rental opportunities.
I think it’s a brilliant idea if you have the room and a great way to add some extra income to your life. There is a growing demand for rental accommodation.
More and more people are trying to live on a tight budget, so they are choosing to rent a room rather than overstretching themselves, and trying to find enough money to rent a whole house.
There is also a growing band of holidaymakers, concertgoers, and business people who are choosing to rent a room in a private home rather than go to the expense of booking themselves into a traditional hotel.
If you want to cash in and benefit from this trend, just follow the plan outlined below.
Identify your potential market
- The first step is to double-check that there is a demand for spare rooms in your part of the country. In most places, there is plenty of demand, but it is always worth checking rather than doing a whole lot of work and spending money only to discover that nobody wants to rent your room.
- It is easy to do this. Just go online, look in the local press and shop windows and see if other people are offering rooms to rent in your area. If they are, the chances are there is a market.
- You can also check with local property agents. If you plan to target holidaymakers, or occasional users, go to your local AirBnB site and check out the type of accommodation that is listed there.
- This research will also allow you to find out how much you can charge. Armed with that information you will be able to work out whether the idea of renting out a room in your house is financially viable.
Prepare your room
- Once you are sure that it is a viable proposition the next step is to get the room in your house ready for guests. You need the room to be clean, comfortable and properly furnished. There is growing competition out there, so you want the room that you are planning to rent out to look attractive.
- If you do not have the cash yet to be able to buy a good quality bed, wardrobe and nightstand consider leasing these items instead. Furniture rental is an easy way to furnish a room to a high standard and do so quickly. Once you have secured some income from the room you can easily buy the furniture from the leasing company.
Rent out more space in your home
- Even if you do not have a spare room in your house, you can still potentially participate in this new way to make money. In towns and cities where demand is high enough, it can make economic sense to convert your loft space, a garden room or garage into a rental accommodation.
- Often doing so will add value to your property and the rental income you generate will help you to pay for the conversion work. This article will tell you more about how much value this sort of home improvement could add to your property. Just remember that the extra income you generate might be subject to taxation. You can find a tax calculator online that can help you figure all that out.
I think during these financially difficult times, it’s a great idea to become creative and think of creative ways to generate extra income.
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