The ‘rent a room’ scheme means you can take in a lodger to live in a furnished room in your home, and it has a special exemption meaning you won’t have to pay tax on the first £4,250 you make each year. This is a huge tax break for most people and really ups the gain. Better still, as a landlord you’ll be expected to ask for a month in advance, which means ready cash comes in quickly.
If you don't want to do it full time, there's a good halfway house too, you can also just play guesthouse. Website Crashpadder allows you to list your spare room online, and take in travellers looking for a cheap place to stay. You can set the nightly cost, undercutting the local hotels, and you might just get to work on your language skills to boot.
How much? With a full-time lodger, you can take home £4, 250 without paying a penny of tax; if you've a desirable property and don't mind paying income tax on anything above this, you could easily add another £1,000.
20 comments:
I'm currently lodging at someones house so...
oo.. I'd need to make some money first, so I could afford some extra rooms xD.
My father has done this before.
My father has done this before.
Maybe I'll rent out the shed...
this is a great idea to make some extra cash thanks
I'm usually the person renting the room.
Yeah this would definitely work better if I owned a place XD
there is also alot of hassle involved with it so it might not be worth it for everyone.
or you could squat :P
this doesnt happen in the US much
Good idea, however I don't know if id want a random stranger in my house.
i dont think id want a random stranger living in my house
I still live with my parents so I can't do this
Not that useful for someone living in a really small town
i think i'm doing that right now, my living situation is renting out a room, i'm hoping to have a place of my own within the next 2 years
my bro paid for his first house doing something similar to this
interesting
Being a landlord sounds like a good idea.
Ugh. I take it this is UK based. :S
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